Alert Sign Dear reader, online ads enable us to deliver the journalism you value. Please support us by taking a moment to turn off Adblock on Dawn.com.

Alert Sign Dear reader, please upgrade to the latest version of IE to have a better reading experience

.

Email


Your Name:


Recipient Email:


ISLAMABAD: The Asian Development Bank (ADB) is planning to arrange co-financing for Rs29 billion Faisalabad-Khanewal Motorway (M-4) project by chipping in newly established Beijing-based Asian Infrastructure Investment Bank (AIIB) and Islamic financing sources.

This is expected to be AIIB’s first financing to any development project when it starts operations as a gesture of goodwill to Pak-China friendly relations and support to China-Pakistan Economic Corridor (CPEC) Project.

The 184km M-4 project is outside the $46 billion CPEC financing initiative but would be critical part of the larger Lahore-Karachi Motorway Project being built under the CPEC.

Take a look: ADB, Britain to fund key section of M-4 motorway

The ADB is providing over Rs22bn financing for the M-4 project that would complete Faisalabad-Khanewal portion. First portion between Faisalabad-Gojra (58km) has already been completed and opened for traffic while second portion Gojra-Shorkot (62km) was currently in advanced stages of completion.

About Rs16bn has already been spent on the project including Rs240m this fiscal year. The funding shortfall of about Rs7bn has to be raised for the remaining 64km section between Shorkot and Khanewal. This portion is also under construction.

ADB’s Country Director Werner Liepach had a meeting with Finance Minister Ishaq Dar on Monday. “The AIIB assistance will be sought for the M-4 project, Shorkot-Khanewal section, near CPEC,” Mr Liepach was quoted by the finance ministry to have said during the meeting.

The ADB country chief also briefed the minister about the progress of the ongoing ADB portfolio in the country and plans relating to financing of projects in 2016.

He said the ADB’s total co-financing for Pakistan stood around $1.050 billion including $400 million grant commitments from Department for International Development (DFID) of the United Kingdom.

He said the ADB had also provided trade finance support for the private sector investments to the tune of $95m.

While sharing the details of ADB’s financing plans for the coming year 2016, Liepach stated that the Bank planned to provide financing of around $1.2 to $1.5bn, mainly in the field of infrastructure under the Public-Private Partnership (PPP) mode.

He said the establishment of Natural Disaster Risk Management Fund and its operationalisation will be one of the priorities of the ADB in 2016.

Dar recognised the ADB’s role and leading contribution for financing projects in various sectors in Pakistan. He said the government was now fully focused on growth and employment generation and the financing provided by the ADB and other multilateral institutions would play an important part in achieving these objectives.

Separately, Pakistan’s Executive Director to the ADB Sami Saeed also met the finance minister and briefed him on upcoming ADB’s annual meeting in the first week of May next year and on various matters related to Pakistan’s constituency.

The two decided to maintain close liaison over the next couple of months to ensure Pakistan’s effective presence and role in the ADB board of directors.

Published in Dawn, December 15th, 2015

DAWN_VIDEO - /1029551/DAWN-RM-1x1


Comments (25) Closed



Charl Dec 15, 2015 10:59am

"The 184km M-4 project is outside the $46 billion CPEC financing initiative but would be critical part of the larger Lahore-Karachi Motorway Project being built under the CPEC."

Were CPEC planners thinking that vehicles would fly from Khanewal to Faisalabad?

Perhaps this report fails to tell the full story.

Skeptic Dec 15, 2015 11:40am

I call this, road to bankruptcy! With no control on costs, and corruption and mismanagement is sure way to go deeper in debt!

Ahmed Dec 15, 2015 11:49am

@Skeptic this is the best buck for money. Great job PML-N government. Let your opponents continue to cry as we march for growth and prosperity

Shahid Dec 15, 2015 12:14pm

Wasn't it here in dawn that we read about irregularities in awarding a section of motor way to a Chinese-Pakistani consortium which was not the lowest bidder. And the difference between the lowest bidder's price and the one got it awarded, was a loss of 24bn rupees. Letting the CPEC projects aside, until today MLN government has completed no project other than Nandipur, a solar installment which gives 14 MW and some 65 km of motor way but they have borrowed about 56bn USD in external and internal loans.

Faisal Dec 15, 2015 12:27pm

@Skeptic stop being negative, its a positive development. I am seeing Pakistan as next Asian power, under the supremacy of PM Nawaz Sharif.

ata Dec 15, 2015 12:30pm

Ahmed, I agree with you. I wonder where was SKEPTIC when previous govt. plundered billions of dollars of country's resources with nothing to show for it. Let him point out a single project completed by them in those 5 years.

Fazal Karim Dec 15, 2015 01:08pm

I think rehabilitating and improving Railways will be more beneficial to Pakistan economy and for poor masses.

Faisal Dec 15, 2015 01:09pm

@ata Well observed, yes they are taking billion of loans, but they are spending it, and all is visible, unlike PPP corruption.

Wali Dec 15, 2015 01:11pm

29billion Rs on building a motorway...one has to question the sanity and reasons for such infrastructure projects in Pakistan - a country with no state-owned emergency services, no intention of any investment in education and non-existent health care.

Mahmood Dec 15, 2015 01:25pm

@Faisal Thanks. Now we can all laugh all the way to the bank!

james Dec 15, 2015 01:28pm

@Wali country can only develop with infrastructure s withouts roads no company would ever invest due to difficult logistics and traveling. China and all other Asian countries including India developed cuz of roads. It generates employment which generates taxes eventually other non profit institutions can be open. You can't spend money on non profit institutions without growth.

malik aabid Dec 15, 2015 01:39pm

infrastructure development is the backbone of any modern developing economy. pakistan is on the right track and its pleasing to people like me from indian side of kashmir. we want a strong prosperous peaceful albeit DEMOCRATIC pakistan,,,,best wishes.

PakPower Dec 15, 2015 01:41pm

@Wali

Your conveniently forget Rescue 1122, Rescue 15, PDMA and NDMA. All of these are state-owned emergency services.

malik aabid Dec 15, 2015 01:41pm

infrastructure development is the backbone of any modern developing economy. pakistan is on the right track and its pleasing to people like me from indian side of kashmir. we want a strong prosperous peaceful albeit DEMOCRATIC pakistan,,,,best wishes.

M. Malik Dec 15, 2015 02:04pm

Rather than borrowing money from foreign banks, why has NS not been able to persuade his friends, the Saudis (along with other GCC nations), to invest in Pakistan, to help alleviate poverty, build infrastructure, improve schools and health care in this country?

Iqbal Khan Dec 15, 2015 02:09pm

Is this the agreed rout of CPEC? Where is the shortest tout? Do you see any part of a smaller province being constructed? All four provinces will carry the burden of debt while the huge amount has been invested in punjab. Is it not better to call Nawaz sharif as the PM OF PUNJAB.

SYED HASSAN HASEEB Dec 15, 2015 02:27pm

loan loan and loans , how much is spend and how much taken away , every body knows even the donors . then why money is being given to bury us

Skeptic Dec 15, 2015 02:36pm

@Faisal And I see Pakistan going the way like Greece.

Something Fishy Dec 15, 2015 02:50pm

there is a thing called (and taught in basic business subjects of BA level) ROI is anybody considering that? specially if counting interest(or opportunity cost) during the gestation period?

I has had the opportunity to travel between ISB-LHR, FSD_ISB and Peshawar-ISB so many times. ALL of these segments are highly underutilized (at best) even after these so many years.

The net cost to the nation/next generations is going to exorbitant irrespective of the corruption during construction.

Truth Dec 15, 2015 04:55pm

Everything looks good on paper.

Muhammad Arshad Dec 15, 2015 04:57pm

Great News

Nasser Dec 15, 2015 07:14pm

All about kick-backs for the Bhuttos and the Sharifs! Any consideration about funding education in one of the most uneducated countries of the world?

Shan Dec 15, 2015 07:20pm

@Charl these are two diff routs. M4 will touch krachi to lahore motorway at shorkot point. A little research would be better before commenting i guess? No?

stevenson Dec 15, 2015 08:07pm

@ata What is even funnier is that people like Skeptic were silent when Musharraf did nothing for 10 years or when Zardari did nothing for 5 years. But when someone comes along who finally is getting things straightened out in the country, they cry foul and talk about irregularities. Things are developing whether people want it or not!

ABBY Dec 16, 2015 06:43am

M-4 Project is a great but all was done in Punjab side. Fed govt should start to develop in Sindh too.! Lahore --Karachi Motorway is developed only in Punjab side.!!!!!!