ADB approves $100m loan for M-4 motorway

Published: June 11, 2016
SHARES
Email
AIIB will provide another $100m following board’s approval. PHOTO: AFP

AIIB will provide another $100m following board’s approval. PHOTO: AFP

ISLAMABAD: The Asian Development Bank (ADB) will loan $100 million to Pakistan for the construction of the Gojra-Shorkot section of the M4 motorway.

The board of directors of the Manila-based lending agency approved the loan on Friday, marking its first co-financing venture with the newly established Asian Infrastructure Investment Bank (AIIB), which will provide another $100 million for the project. The AIIB board will decide on the loan later this month.

ADB to provide $6b for infrastructure projects in Pakistan

Britain’s Department for International Development (DFID) has also committed a $34 million grant for the project. The ADB will act as the lead financier and 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 Pacific region,” said ADB President Takehiko Nakao after the approval of the loan by the Board of Directors of the Manila-based lending agency.

He said that 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 the AIIB have been preparing projects for co-financing since last year. Nakao and AIIB President Liqun Jin signed a memorandum of understanding for collaboration at the time of ADB’s annual meeting in Frankfurt, Germany, in early May.

The project constitutes a key part of the 1,800-kilometre CAREC transport corridor linking Karachi in the south, to major primary production and population centres, including Lahore, Faisalabad, Islamabad and Peshawar, and on to Torkham on the northern border with Afghanistan.

The M-4 Motorway will have four sections. The 58-kilometre Faisalabad-Gojra section has been opened for traffic. The project was completed by borrowing $170 million from the ADB. The Gojra-Shorkot section will be completed by November next year, the NHA chairman told diplomats on Thursday while briefing them on Pakistan’s infrastructure plans.

Pakistan, ADB sign $178m agreement for M-4 section

Once the M-4 is completed, it will link southern parts of Punjab with the north through already established networks of motorways. The M-4 Motorway will extend the already completed M-1, M-2 and M-3 motorways southward and shorten the distance between Multan and the twin cities of Islamabad-Rawalpindi.

Upon completion, the M-4 Motorway will provide a four-lane access controlled alternative to the existing narrow and congested routes notably in the heavily trafficked Faisalabad and Khanewal-Multan-Muzaffargrah areas.

M-4 is also a step towards positioning Pakistan as a transit artery for goods moving between Karachi and Torkham through the country’s major business and population centres.

Published in The Express Tribune, June 11th, 2016.

Facebook Conversations

Reader Comments (4)

  • syed baqar ahsan
    Jun 11, 2016 - 10:13AM

    There is no mention of Shorkot-Khanewal section,that is unfair for punjab south please start simultaneously . Recommend

  • QD
    Jun 11, 2016 - 11:18AM

    It should be a 6 lane motorway like M1 M2
    M3 and M4 will become very busy and 4 lanes will be insufficientRecommend

  • scotchpak
    Jun 11, 2016 - 1:05PM

    Why we have to borrow to complete a road is so 1960’s. There is hardly any foreign exchange component in moving dirt around. Perhaps the graft in hidden in in the foreign exchange.
    In any case the next section shorkot to abdul hakim is the most expensive. The players are getting ready for this flood sectionRecommend

  • Defence Analyst
    Jun 12, 2016 - 6:46AM

    So effectively Pakistan is getting funded by Indian money, is it not? Should Pakistan borrow this loan?

    India owns 6.4% of Asian Development Bank and 8.52% of Asian Infrastructure Investment Bank.Recommend

More in Business