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PR No. 92
CLARIFICATION: FINANCING FROM ASIAN INFRASTRUCTURE INVESTMENT BANK (AIIB) FOR GOVERNMENT OF PUNJAB PROJECTS
Islamabad June 15, 2020

This is apropos to a news item appeared in section of print media that “One billion dollar guaranteed concessional loan from Asian Infrastructure Investment Bank (AIIB) is being jeopardized due to lack of inter-provincial and federal coordination”. Spokesperson clarified that the concessional financing from AIIB for the two projects of Government of Punjab is not at risk due to lack of Federal – Provincial coordination. The Economic Affairs Division, on the request of Government of Punjab, approached Asian Infrastructure Investment Bank in 2018 for financing of ‘Lahore Water and Waste Water Management Project’ and ‘Construction of Rawalpindi Ring Road’ Projects. The projects were proposed for financing at inception stage and detailed preparations were required subsequently. The Government of Punjab is conducting detailed preparation studies for the project. Asian Infrastructure Investment Bank also approved a Project Preparation Grant of USD 500,000/- for preparation of Lahore Water and Waste Water Project. The PC – Is for Surface Water Supply and Trunk Sewers have also been approved by ECNEC on 02.10.2019 and 16.03.2020, respectively. Presently, the Government of Punjab is in the process to complete land acquisition process for aforementioned components of Lahore Water and Waste Water Management Project. Similarly, for Rawalpindi Ring Road, services of a consultant have been hired to complete detailed design and alignment for the Road. Spokesperson also clarified that these financing indication by AIIB are indicative and the impression that concessional financing may lapse is not true as this is not backed with any official policy of the AIIB. The Economic Affairs Division is persistently coordinating with Government of Punjab for preparation of project related documents and timely delivery of the Projects.
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