The Punjab government is pursuing a $210 million loan from the Asian Development Bank (ADB) to bolster climate resilience and improve municipal services in the province.
According to an ADB project document, the initiative aims to enhance urban environments, protect natural ecosystems, mitigate climate change impacts, and promote gender equality. The bank is currently evaluating the project and is expected to send a fact-finding mission to Pakistan in the coming months. A $5 million grant may also be extended to support project development.
This second phase of the “Developing Resilient Environments and Advancing Municipal Services” (Dreams) initiative will focus on sustainable, inclusive, resilient, gender-responsive, and low-carbon municipal services in Sargodha and Dera Ghazi Khan. Planned investments include upgrading water supply and sanitation infrastructure to modern standards.
The project emphasizes institutional and capacity development for municipal corporations to improve service delivery, accountability, and operational efficiency, ensuring financial and operational sustainability.
In Dera Ghazi Khan, the initiative will enhance wastewater treatment capacity and transition the pressurized wastewater system to a cost-effective gravity-based system. In Sargodha, investments will expand wastewater treatment capacity and transition water sources to surface water by upgrading treatment facilities.
The project is aligned with improving urban environments, safeguarding public health, protecting ecosystems, and addressing climate change challenges.
