After signing the agreement, Tanaka said the grant was part of $300 million grant which was pledged on November 2001.
He said after 9/11, Japan rescheduled about $4.5 billion to support Pakistan economically as well as granted $300 million for poverty alleviation to promote health, environment, water supply, sewerage, sanitation, education and other social sector development programmes.
One of the projects was retrieval of sewage and drainage system in Lahore for which Japan provided Rs 700 million aimed at improving the existing sewage and drainage system and to alleviate possible flood damages in the northern part of the city. Under this grant, besides monitoring and clearing equipment, additional pumps and equipment for pumping stations will also be provided. It will also procure clearing and desilting equipment for sewer pipes and drainage channels.
During the signing ceremony Tanaka said: "Cities in Pakistan face the challenge of an increasing demand for proper sewage disposal due to rise in population and rapid urbanisation.
We intend to promote development of sewage systems in urban areas as we realise that the improvement and enhancement of such system has a direct bearing on poverty reduction."
Under the second project, the grant of Rs 70 million would be used for renovation and electrification of gates and desks of the Taunsa barrage. This 46-year-old barrage is not only a key irrigation facility but also a facility to prevent possible flood damages.
It irrigates about 1.1 million hectors of irrigated land, which is five percent of cultivated area of Pakistan, 15 percent of cotton and eight percent country's total wheat is produced in the area irrigated through the facility.
Being an important source for the economic development of the area, it was imperative to rehabilitate the barrage. The project is expected to restore the functioning of Taunsa Irrigation System, thus making the supply of irrigation water stable, possible to the D. G. Khan and Muzaffarabad irrigation canals.
Tanaka, commenting on the irrigation sector, said: "We realise that an overwhelming majority of Pakistan's population, directly or indirectly relies on agriculture.
Hence, water resource development to ensure sustainable supply of water for agriculture is extremely important considering its impact on the life of masses in Pakistan."
Tanaka further mentioned that Japan recognises the importance of modernising water supply infrastructures to maintain an efficient and sustainable irrigation network at key facilities of the Indus irrigation system."