Pakistan, AIIB sign advance loan agreement worth $1.6 million

F.P. Report

ISLAMABAD: The Government of Pakistan and Asian Infrastructure Investment Bank (AIIB) on Wednesday signed an advance loan agreement worth $1.6 million for “Lahore Water and Wastewater Management Project”.

The Federal Minister for Economic Affairs, Sardar Ayaz Sadiq witnessed the signing ceremony of Project Readiness Advance Loan Agreement for Lahore Water and Wastewater Management Project held at Ministry of Economic Affairs, said a press release issued here.

Dr Kazim Niaz, Secretary Economic Affairs Division signed the agreement on behalf of the government and Supee Teravaninthorn, Director General, Infrastructure Investment Department, Region 2, Asian Infrastructure Investment Bank signed the agreement on behalf of the AIIB.

On the occasion, the Minister for Economic Affairs welcomed the AIIB delegation at the ministry and expressed gratitude for extending their continuous support to the Government of Pakistan in its efforts to achieve the sustainable economic and social development of the country.

He apprised the delegation that the project holds high importance to the city of Lahore as it would ensure sustainable supply of safe water, reduce deteriorating environmental impacts due to untreated sewage disposal and deliver improved services to the general public thus help making it a financially strong entity.

The preparatory activities will comprise recruitment of two international PMCs, one each to support the engineering and design activities for the infrastructure components of the project.

The PMCs will perform design reviews, finalize tender documents, help the Implementation Agency to undertake the tendering process, update the environmental and social assessments to take into account the planned land acquisition that will be completed after the independent valuation study has been carried out and verify that the necessary provision of occupational health and safety are incorporated, and assist the Implementation Agency to update the environmental and social management plans, during the technical designs’ review, for their inclusion in tender documents.

The preparatory activities will also support the incremental operating costs for hiring of relevant experts to support project implementation, office rental, transport and office expenditures.

Secretary for Economic Affairs expressed gratitude to the AIIB team for extending their continuous support to the Government of Pakistan to achieve National Development Goals.

He also expressed the hope that the preparatory advance shall lead to early signing and implementation of the main project aimed at ensuring sustainable supply of safe water and improvement of existing sewerage system by providing new trunk sewers/conduits thereby reducing environmental degradation. (APP):