ADB approves USD 100m loan for a Pakistani highway project
The Asian Development Bank (ADB) approved a USD 100 million loan, on Friday, with regard to a highway project in Pakistan.
The project will mark ADB's first co-financing with the Asian Infrastructure Investment Bank (AIIB).
According to a press release, issued on Friday, AIIB will provide a USD 100 million loan subject to its board approval, later this month.
The United Kingdom's Department for International Development (DFID) has also committed a USD 34 million grant for the project.
ADB President, Takehiko Nakao said, "this is a historic milestone for ADB and AIIB as we jointly aim to meet the pressing infrastructure needs in Asia and the Pacific region. The project has strategic value to Pakistan as it supports north-south connectivity, new trade, and business opportunities, which will boost jobs and cut poverty."
He also termed the project as an integral part of the Central Asia Regional Economic Cooperation (CAREC) corridors. ADB and AIIB have both been preparing projects for co-financing since last year.
A memorandum of understanding for collaboration was signed by Nakao and AIIB President, Liqun Jin, at the ADB's Annual Meeting in Frankfurt, Germany, in early May.
This project will fund the remaining 64-kilometer (km) long four-lane section of the M-4 National Motorway, which connected Shorkot and Khanewal in Punjab province.
The project constitutes a key part of a 1,800 km CAREC transport corridor, linking the port city of Karachi in the south, to the major primary production and population centres, including Lahore, Faisalabad, Islamabad and Peshawar, and on to Torkham on the northern border with Afghanistan. ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific region through not only an inclusive economic and environmentally sustainable growth, but also regional integration.
Tag Keyword: Asian Development Bank , Highway Project , Asian Infrastructure Investment Bank , Department for International Development , Central Asia Regional Economic Cooperation