ADB to provide $100mn for Shorkot-Khanewal section of motorway
Investments in transport and connectivity as well as other regional cooperation initiatives can put Pakistan’s economic development on upward trajectory, said ADB Vice President Wencai Zhang
June 20, 2016
ISLAMABAD: The Asian Development Bank (ADB) and the government of Pakistan Monday signed an agreement for a $100 million loan for the construction of remaining 64 kilometer section of the motorway (M 4) connecting Shorkot and Khanewal in Punjab province.
Secretary for Economic Affairs Division (EAD) Tariq Bajwa and ADB’s Country Director for Pakistan Werner E. Liepach signed the agreement during a ceremony also attended by Finance Minister Senator Muhammad Ishaq Dar and ADB Vice President Wencai Zhang.
“Pakistan must grasp the opportunities presented by its strategic location. Investments in transport and connectivity under the framework of Central Asia Regional Economic Cooperation (CAREC) programmes as well as other regional cooperation initiatives can put Pakistan’s economic development on an upward trajectory,” said ADB Vice President Wencai Zhang.
The project marked ADB’s first cofinancing with the Asian Infrastructure Investment Bank (AIIB).
AIIB will provide a $100 million loan subject to its board approval later this month.
The United Kingdom’s Department for International Development (DFID) has also committed a $34 million grant for the project.
ADB would administer both the AIIB loan and the DFID grant.
The ADB through its transport sector projects is assisting Pakistan to upgrade key sections of primary north south highways and motorways.
The project was part of a 1800 KM CAREC transport corridor linking the port city of Karachi in the south to country’s inland urban centers and onward to Afghanistan and the Central Asian countries.
Once completed the transport project would help substantially cut travel time between Karachi and Peshawar and link up Pakistan with Central Asian countries boosting regional trade and commerce.
The ADB based in Manila is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth environmentally sustainable growth and regional integration.
Established in 1966 ADB in December 2016 will mark 50 years of development partnership in the region.
It is owned by 67 members 48 from the region.
In 2015 ADB assistance totaled 27.2 billion including cofinancing of 10.7 billion.
