Grant for two development projects in Punjab: Japan gives

$13.2m to Pakistan
ISLAMABAD: The government of Japan on Thursday gave US $13.2 million to Pakistan for two
development projects in Punjab.

The Official Exchange of Notes (E/N) were signed and exchanged between Nobuaki Tanaka,
ambassador of Japan to Pakistan and Shuja Shah, secretary of Economic Affairs Division (EAD). The
grant would be used to improve sewage and irrigation systems in Punjab.

Japan extended a grant of 1,222 million yen (approx US$ 12 million) for the sewage and drainage
system in Lahore city.

The project will improve the existing sewage and drainage system and repair possible flood damages
in the northern part of Lahore. The project would cover an area of approximately 40 square kilometres
and would benefit two million people, sources said. They said the sewage and drainage systems in
Lahore needed improvement.

Under the project, monitoring and cleaning equipment, pumps and related equipment for pumping
stations, cleaning and de-silting equipment for sewer pipes and drainage channels would be acquired,
sources said. They said the project would help increase the flow capacity and storm water storage
capacity by nearly 50 percent and drainage capacity at the pumping stations would increase by 30
percent, adding that cases of water-related diseases would decrease.

While signing the grant agreement, the ambassador said, “Cities in Pakistan face problems from
increasing demand for proper sewage disposal due to increase in population and rapid urbanisation. As
a part of our efforts to help improve urban infrastructure, we intend to promote development of
sewage systems in the urban areas as the improvement and enhancement of such systems has a
direct bearing on poverty reduction.”

For the second project, Taunsa Barrage Gates, Japan had extended 129 million yen (approx US$1.2
million) initially, to make a detailed improved design for the barrage.

Most of the irrigation system in Pakistan was 50 to 100 years old and required large-scale
improvement, sources said. They said the Taunsa Barrage at Indus river system, built more than 46
years ago, was not only a key irrigation facility but also prevented possible damages from floods. The
barrage covers 1.1 million hectares of irrigated land, which is roughly five percent of the cultivated
area in Pakistan, they said and added that 15 percent of cotton and eight percent of the country’s
total wheat was produced in the area irrigated through the facility. They said around 3.5 million people
directly benefit from the barrage.

Sources said Japan’s support would help rehabilitate and electrify gates and decks at the facility and
added that necessary operational, maintenance and construction equipment would also be acquired.
Sources said the project would likely restore the functioning of Taunsa Irrigation System, thus
stabilising the supply of irrigation water.

The project, sources said, once completed would bring peace and security to the area.

Ambassador Tanaka 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 people’s lives.” He said Japan
recognised the importance of modernising water supply infrastructures to maintain an efficient and
sustainable irrigation network at the key facilities of the Indus irrigation system, which was the
backbone of the irrigation network as well as Pakistan’s economy.”

Shuja Shah thanked the Japanese government and said it had graciously extended US $300 million
grant to Pakistan. He said out of 300 million dollars, Japan had released US$ 13.2 million. He said
another grant agreement worth 50 million dollars would be signed next month. 

Ambassador Tanaka said Japan promptly implemented its commitments. He said Japan had committed
US $300 million grant to Pakistan after 9/11 and, “We are going to increase the amount by US $33
million”. He said Pakistan would now receive US $333 million.

He hoped that the two projects would help alleviate the difficulties and help reduce poverty. He said
Japan was a ‘time tested friend’ of Pakistan and recalled that Japan provided substantial aid to
Pakistan in 1990s when it was going through financial difficulties due to sanctions.