ADB Approves $180 Million Loan for Urban Environmental Resilience in Pakistan

Manila, The Asian Development Bank (ADB) has sanctioned a $180 million loan aimed at enhancing water supply and solid waste management services in Rawalpindi and Bahawalpur, two rapidly expanding cities in Pakistan’s Punjab province. This initiative is expected to benefit around 1.5 million residents, contributing to the sustainability and resilience of urban environments.

According to Asian Development Bank, the loan for the Developing Resilient Environments and Advancing Municipal Services in Punjab Project is a response to challenges posed by excessive groundwater extraction and urban environment degradation. The project’s focus in Rawalpindi will be on expanding and modernizing the urban water supply, while in Bahawalpur, it will improve solid waste management systems.

ADB Director General for Central and West Asia, Yevgeniy Zhukov, emphasized that the project aims to make municipal services in these cities more sustainable, resilient, and less carbon-intensive. He anticipates significant improvements in the quality of life for the people of Rawalpindi and Bahawalpur through reliable water supply and better waste management.

In Rawalpindi, the financing will support the construction of new surface water intakes, a water treatment plant with a 54 million liters per day capacity, and the extension of transmission and distribution pipes to serve 82,000 households with metered connections. The project also includes upgrading water pumps, transmission mains, and establishing district metering areas to boost efficiency.

The project in Bahawalpur focuses on enhancing solid waste collection by procuring new waste collection equipment and expanding service coverage. A new fleet management information system will support these efforts. Additionally, the project plans to construct a recycling facility, a flood-proof landfill, and rehabilitate the existing dump site. The provision of personal protective equipment for informal sector workers is also part of the project.

ADB Urban Development Specialist Xijie Lu highlighted that, aside from improving infrastructure services, the project is designed to enhance operational efficiency, inclusivity, and financial sustainability of the Rawalpindi Water and Sanitation Agency and the Bahawalpur Waste Management Company. Innovations include components featuring renewable technologies, cost-recovery interventions, and behavioral change and communication elements.

Furthermore, ADB will administer a $1 million technical assistance grant provided by the Republic of Korea e-Asia and Knowledge Partnership Fund. This grant will strengthen the capacity of the Rawalpindi Water and Sanitation Agency to address water supply leakages in the city.

The ADB’s commitment to this project aligns with its broader goal of achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while continuing its efforts to eradicate extreme poverty.

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