ISLAMABAD, Jan 24: Japan will provide $27 million loan to complete the Kohat tunnel construction project.

Japanese Ambassador Minoru Shibuya and Economic Affairs Secretary Dr Waqar Masood Khan signed the agreement on Friday for the soft loan.

The loan is being offered at an annual interest rate of 1.8 per cent and will be repayable in 30 years, including a grace period of 10 years.

The Japan Bank for International Cooperation will finance the project.—Staff Reporter