ISLAMABAD, July 24: The World Bank has agreed to offer substantial funding for the $260 million “Pakistan-Highway Rehabilitation and Maintenance Project” to be undertaken in 2003.

Informed sources said that Pakistan had been told that the World Bank was expected to formally approve the project early next year to rehabilitate about 1,000 to 1,200kms (15%) of the national highway network as part of the phase-1 programme.

The rehabilitation programme will be spread over ten years and will be implemented in three phases. The phase-1 also includes highway bridges and drainage structures and sub-projects covering about 500-600kms of highways and structures.

Under the programme, assistance will be provided by the World Bank for operationalizing the National Roads Board (NRB) and Road Fund and the institutional strengthening of the National Highway Authority (NHA).

The strengthening of NHA’s financial systems and controls, development and implementation of a Road Asset Management System (RAMS), promoting an enabling environment for private sector participation in the provisions and operations, supporting the axle load control programme and preparing NHA for commercial operations, including staffing and skills, are also included in the programme.

The project will target efficiency improvement of the existing highway network through functional and structural overlays. In general assessment, the project will not cause any significant resettlement.

According to the World Bank, the project, which forms a part of the NHA’s prioritized medium-term work rehabilitation and improvement programme, will help improve the condition of the national highways, lower transportation costs and travel times. This would increase export competitiveness, accelerate export-oriented growth and contribute to sustained economic development.