ADB agrees to provide $45 million funds for Punjab

The Asian Development Bank would provide fresh funds of $45 million to the Punjab province of Pakistan for improving delivery of health, education, water, and sanitation services. ADBs Board of Directors has approved the release of the third tranche of Punjab Devolved Social Services Program. A total of $25 million comes from ADBs concessional Asian Development Fund and $15 million from its ordinary capital resources, it added. Co-financing in the form of a $5 million grant is being provided by United Kingdoms Department for International Development (DFID). The first and second tranches of $80 million and $55 million equivalent were disbursed in December 2005 and November 2007 respectively. In a bid to improve service delivery for the poor, Punjab government devolved responsibility for education and health to districts, and water supply and sanitation to town municipalities. Recently, Punjab adopted a medium term development framework (2008-2011) to strengthen the allocation of resources and promote fiscal discipline, it added. ADBs program, which is closely tied to the development framework, set out a challenging reform agenda for improving social services. Achievement of the policy actions was linked to the release of loan funds. To date, the province has made significant progress in complying with key actions including strategic sector planning at the provincial and local government levels, the establishment of minimum standards for social services, the strengthening of accountability, and the promotion of public-private partnerships (PPPs). Despite facing fiscal constraints, which have been exacerbated by the global economic crisis, the province has boosted per capita health spending in the public sector, progressively since fiscal year 2005 through fiscal year 2008. Reforms in the education sector have increased the number and quality of schools. Punjab has also benefited from an expansion of district inspection in education.