ISLAMABAD, June 10 (APP): The Asian Development Bank (ADB) on Friday approved a $100 million loan for a highway project in Pakistan that will mark its first cofinancing with the Asian Infrastructure Investment Bank (AIIB).
“AIIB will provide a $100 million loan subject to its
Board approval later this month” a statement of the Bank
received here from Manila, Philippines here Friday said.
According to the ADB statement, the United Kingdom’s
Department for International Development (DFID) has also
committed a $34 million grant for the project.
ADB as the lead financier will administer both the AIIB
loan and the DFID grant.
“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,” said ADB President Takehiko
Nakao.
“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.”
The project is also an integral part of the Central Asia
Regional Economic Cooperation (CAREC) corridors.
The ADB and AIIB have been preparing projects for
cofinancing since last year.
A memorandum of understanding for collaboration was
signed by Nakao and AIIB President Liqun Jin at the time
of 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
connecting 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 major primary production and population
centers including Lahore, Faisalabad, Islamabad and
Peshawar, and on to Torkham on the northern border with
Afghanistan.
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.