The Asian Infrastructure Investment Bank (AIIB) has approved a $71.81m loan for the Karachi Bus Rapid Transit (BRT) project in Pakistan.
The project includes the construction of the Karachi Red Line BRT Corridor and its associated facilities, along with the establishment of BRT operations.
Upon completion of the project, approximately 1.5m residents living within 1km radius from the BRT corridor and off-corridor services are expected to be directly benefited.
AIIB said that the project is also expected to improve the air quality of the city and reduce greenhouse gas (GHG) emissions as passengers switch from private cars and motorcycles to the new BRT system.
In October 2019, the AIIB had approved a $40m loan to improve Karachi’s water services.
The funding will be used to upgrade the efficiency and sustainability of the Karachi Water and Sewerage Board (KWSB).
The bank said that the KWSB provides 650m gallons of water per day to Karachi, which is about half of the city’s total needs.
AIIB vice president and chief administration officer Luky Wuryanto said: “AIIB has a steadily growing investment portfolio in Pakistan, which is closely aligned with the country’s national development priorities.
“The Bank will continue to strengthen efforts to improve institutions, services and infrastructure, which will certainly have a positive impact on economic growth and people’s livelihoods.”
AIIB said that with the latest investment, its overall commitment in Pakistan has reached $512m.
The bank has also provided a Special Fund grant of $0.5m for the preparation of the Lahore Water and Wastewater Management project.
Following the recent investments by the bank to improve the Karachi’s transport and water services, residents across the city are expected to have access to the basic services.
Recently, the bank has approved a $575m loan for the Indian Government to help ease congestion in the country’s financial hub as well as strengthen renewable energy, power transmission and water infrastructure.