ISLAMABAD: The Asian Development Bank has agreed to release the second tranche of $200 million for the Private Participation in Infrastructure programme.
The bank had approved $400 million for the programme to increase private participation in infrastructure development. The first tranche of $200 million was spent on removing bottlenecks in policy, legal and regulatory frameworks and the priority sectors were power and energy, transportation and urban services.
While the first tranche was released, the government, in parallel, set up the Infrastructure Project Development Facility (IPDF) under the ministry of finance to develop infrastructure projects for private sector participation.
The PPI programme was approved before the global food and fuel crises. However, Pakistan started feeling the impact of the crises in the late 2007 with the situation becoming more severe in 2008-09 that led the government to seek support from the International Monetary Fund.
As part of the ADB’s Accelerating Economic Transformation Programme, which provides budgetary support under overall financing plan for the IMF stabilisation programme, the government was to implement a range of measures to address power sector constraints.
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