Addressing a press conference on ADB's operations in Pakistan, Country Director Marshuk Ali Shah said that about $222 million would be provided through the concessionary ADF window.
In line with the country strategy 2004-2006 approved by ADB last year the emphasis is good governance, sustainable pro-poor growth and employment generation. Further, governance is the key theme in improving delivery of social services, through strengthening devolution, sector administration and financial management.
The sectoral composition of lending for the calendar year is 25 percent for energy, 24 percent of agriculture, followed by 16 percent each for finance and industry and transport.
The 2004 programme includes a grant of $10 million for 20 technical studies.
The projects for the year with the costs are:
Federally Administered Tribal Areas (Fata) Rural Development ($40 million); Punjab barani area development ($60 million); Decentralised social services Punjab ($150 million); Balochistan Resources Management programmes ($120 million); Rawalpindi environment improvement project ($80 million); NWFP road development program and sub- regional connectivity project ($250 million); Restructuring of technical and vocational education ($50 million); Cleaner Fuel Project ($50 million); Besides, there are three standby projects of $100 million each.
These relate to agriculture diversification and agribusinesses development, industrial efficiency and environment management and decentralised social services programme for Sindh.
The standby loans are to be finalised during the year. The loan amount could be utilised for some other urgent programme in the pipeline.
Highest allocation of $250 million is proposed for NWFP road development and sub-regional connectivity which envisages that the road network is improved and so also the cross border arrangement at Torkham.
This would improve access to remote corners, stimulate economic activity and help reduce poverty. With improved roads, Pakistan, Afghanistan and Central Asian countries would come closer.
The Country Director stated that this would streamline cross border arrangements and added that a new customs post at Miranshah is proposed to be set up for customs screening.
Dollar 50 million for decentralised social services in Punjab is parts of similar programmes for Balochistan and NWFP and Sindh.
This is meant to improve the quality of social services as many schools, clinics are not functioning properly due to problems of governance, access and quality of services.
While lending programmes for NWFP is proposed for the next year, for Sindh assistance programme of $100 million is one of the three standby loans for the current year.
The programme will include policy-based lending and project lending for social delivery. It aims at strengthening capacity building, roles, linkages participation and sustainable financing.
It is expected that improved use, quality and efficiency of social services would result in improving primary education enrolment, reduce dropouts, improve gender balance and reduce maternal and child mortality. Access to safe drinking water is another objective of the programme. It would also strengthen the decentralisation policy and devolution.
Balochistan Resource programmes for which $120 is proposed is to promote effective use of public resources for poverty reduction, human development and economic growth.
Last year similar programme was carried out for Punjab. The purpose is to enhance effectiveness of public expenditures, improve the writ of law and capacity of law enforcing agencies, reform the fiscal and financial management, reform of delivery of public services through devolved governance.
Greater revenue generation is also envisaged through improved management of natural resources and injection of more professionalism in the civil services is also another objective.
The Rawalpindi environment improvement project for which $80 million is earmarked will focus on improvement in water supply, sewerage and drainage. It includes provision of sewage plants and solid waste management.
This is the second phase of assistance as in phase one ADB in 1993 approved a loan of $72 million for Rawalpindi urban water and sanitation project.
It included rehabilitation of the existing water supply and sanitation facilities and institutional support to Water and Sanitation Agency (Wasa).
The restructuring of technical education and vocational training is to improve the quality and relevance of the technical institutes and to produce skilled manpower to meet the labour market demands and to reduce mismatch between jobs and skills among the youth.
It would also monitor labour market and draft plans to further improve the technical education and vocational training.
Cleaner fuel project aims at greater use of CNG for transport sector thus making substantial saving in foreign exchange with reduction in import of fuel. The components include more CNG filling stations and conversion of more public transport buses to gas.
Replying to questions, which indicated doubts about the devolution system, Shah, who was joined by Naved Hamid, senior economist of ADB, said that devolution is here to stay. At present there were some problems but with six years provided in the constitutional arrangement, it would take strong roots and by then the people would realise its benefits.