It will then help prepare projects for expanding and improving the mega city's infrastructure and services that may be funded by ADB in its lending program for Karachi over the next four years. Priority projects to be prepared cover water, sewerage, and drainage; solid waste management; roads and transport; and upgrading of informal settlements.
Last, the project will establish an innovative financing vehicle for the mega city's infrastructure and services that will act as a means to channel development funds to the city, a catalyst for reforming the city agencies, and an agent to mobilize funds from nongovernment sources for large scale capital investment needs.
"There is increasing recognition that the growing gap between urban infrastructure demand and supply cannot be met through traditional government sources," says Ms. Cezayirli.
"Alternative sources of financing and new ways of providing infrastructure are required."
ADB's loan will cover 75% of the project's total estimated cost of $13.33 million. The loan comes from ADB's concessional Asian Development Fund and carries a 32-year term, including a grace period of 8 years. Interest is to be charged at 1% per annum during the grace period and 1.5% per annum thereafter.
The Government will contribute the balance of $3.33 million equivalent. The Finance Department of the Government of Sindh is the executing agency for the project, which is due for completion in January 2010.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
