Pakistan takes up $800 million loan for CAREC

Staff Report
Tuesday, 19 December 2017
ISLAMABAD: Economic affairs division (EAD) and Asian development bank (ADB) signed two loan agreements, on Monday, for provision of first tranche of $180 million for central Asia regional economic cooperation (CAREC) corridor development investment program and $200 million for Punjab intermediate cities improvement investment project; an official statement said.

The loan agreements were signed by EAD secretary Arif Ahmed Khan, and ADB country director Xiaohong Yang.

According to detail, ADB has committed to provide $800 million for financing infrastructure projects under the CAREC corridor development investment program.

Under this program, ADB will provide $180 million as first tranche to national highway authority (NHA) for improving road network along N-55.

NHA will construct additional 2-lane carriageway of 66 kilometres (km) along the existing 2-lane of Petaro – Sehwan road and 43 km along the existing 2-lane of Ratodero – Shikarpur road.

It will help in rehabilitation of the existing 34 km 4-lane carriageway of Dara Adamkhel –Peshawar road.

This will provide due diligence advisory services to NHA for preparing projects under subsequent tranches.

ADB, separately, will provide $200 million for Punjab intermediate cities improvement investment project. Under this project, the government of Punjab will improve urban services in Sahiwal and Sialkot cities.

It will help to improve water supply, sanitation and waste management system, parks, footpaths, green belts and bus terminals. As a result, quality of life of residents of these cities will improve, by making them more liveable and sustainable.

Speaking on the occasion, Khan appreciated ADB’s support for improving infrastructure and urban services in Pakistan. He reiterated that the government of Pakistan is committed to improve regional connectivity by improving physical infrastructure and economic cooperation.

Punjab intermediate cities improvement investment project will make Sahiwal and Sialkot more livable and sustainable by providing state of the art urban services, he concluded.

The representatives of NHA, Punjab local government and community development attended the signing ceremony.