ISLAMABAD, Nov 20: The Asian Development Bank (ADB) approved on Thursday a $187 million loan and technical assistance package to build a priority regional transport corridor and improve road network in Balochistan.

The Balochistan road development sector project will support institutional development, improvement of roads and national highways and construction of a new cross-border facility in Afghanistan.

The project will improve and widen 247 kilometres of National Highway, 25 kilometres from Kalat to Quetta and Quetta to Chaman, forming part of the Central Asia-Afghanistan-Pakistan transport corridor that passes through Balochistan.

The project is expected to benefit around 500,000 people living near the roads, 200,000 of whom are classified as poor. Many more will benefit in the long run from lower transport costs and economic and social development, says an ADB announcement.

The bank said the onset of peace in Afghanistan, the introduction of market-oriented reforms in Pakistan and developments in Central Asia have opened up new opportunities for closer cooperation among the countries.

A new cross-border facility into Pakistan will be built at Chaman and equipped with modern systems and equipment. The ADB assistance will go towards training aimed at improving delivery of cross-border services including immigration, customs and health checks in an integrated manner.

Under the project, the staff will be trained in immigration, security, customs, weigh stations and other border duties.

The bank said that bureaucratic procedures and lack of facilities could cause delays in moving goods and passengers across the borders. The inability to effectively manage and monitor cross-border trade has spurred extensive smuggling and other unauthorized flow of goods.

The border facilities and improvement to NH-25 would provide easier and more controlled movement of goods along the main corridor linking Afghanistan to major ports in the south of Pakistan, promoting economic and social development in the province.

The total cost of the project is $267.3 million, of which the government will provide $81.6 million. ADB will meet almost 70 per cent of the loan.

The loan has a 25-year term including grace period of five years. Interest is determined in accordance with ADB’s LIBOR- based lending facility.

In addition, the ADB will also provide a technical assistance grant of $500,000 equivalent to assist in improving cross-border operations and establish a pilot cross-border facility. The project will be completed till June 2009.