ADB approves $335m loan for Peshawar bus project

Project can restructure entire public transport industry on modern lines

ISLAMABAD: The Asian Development Bank (ADB) on Friday approved a $335 million loan for building a sustainable urban transport system in Peshawar through the creation of the city’s first integrated Bus Rapid Transit (BRT) corridor.

The board of directors of the Manila-based lending agency approved the loan for the construction of Khyber-Pakhtunkhwa’s first mass transit infrastructure at a total cost of $587 million.

In addition to the $335 million ADB loan, the K-P government - led by the Pakistan Tehreek-e-Insaf (PTI) - will obtain two other loans from two European financial institutions.



The Agence Française de Développement (AFD) and the European Investment Bank are also expected to provide $75 million each in co-financing. The ADB will administer the loan from the AFD, according to an official handout from the bank.

The provincial government will arrange $102 million from its own resources for the project which includes capacity building of the Khyber-Pakhtunkhwa Mobility Authority and the Trans-Peshawar Company. The company will be responsible for the BRT operations.

In May, the Central Development Working Party of the federal government had approved the mass transit project at a downward revised cost of Rs56.8 billion. However, the provincial government and the lenders had prepared the plan at a cost of over Rs61 billion or $587 million.

The BRT corridor will consist of 31 stations and will run from Chamkani to Hayatabad. The project can be used as an opportunity to restructure the entire public transport industry - from minibus and Bedford bus, and from wagon and Suzuki to Qingqi, according to an environment assessment study of the project.

Many positive impacts on the environment are expected from the proposed project due to the use of a cleaner and more fuel-efficient fleet as well as reduction in vehicular exhaust emissions owing to a decrease in kilometres travelled by private vehicles, according to the study.

ADB Country Director for Pakistan Xiaohong Yang said: “A modern and safe urban transport system is essential for the growth and development of cities like Peshawar and in the improvement of quality of life of its residents.”

She added: “The BRT corridor will not only provide safer, more efficient and comfortable transportation options for the people in Peshawar, it will also improve the air quality, reduce carbon emissions, foster gender equity, and make the city more liveable.”

The project features the construction of a 26-kilometre, 31 station BRT corridor and associated facilities including two depots, park-and-ride facilities, bicycle lanes, sidewalks, streetlights and an improved drainage to climate-proof the corridor.

The project will require demolishing and relocating some of the structures within the Right of Way such as water supply pipes, drainage structures and electric and communication cables. Temporary suspension of services can affect the economy, industries, businesses and residents’ daily lives.

There is only one historical site within the project area, i.e. the Bala Hisar fort.

The current public transport has low usage among women passengers. The project will establish universal access and safety features for women and children, as well as for the disabled, including proper lighting and monitoring, segregated areas, and staff trained to deal with harassment incidents. Of the 4,000 jobs expected to be generated by the project, 10% are expected to be for women.



The Peshawar BRT is considered a ‘third-generation’ BRT system - an innovation which allows BRT vehicles to travel along the BRT corridor in the busiest parts of the city and to travel off-corridor in less congested areas.

This approach expands the system’s reach and capacity, lessens passenger transfers, and increases ridership and financial sustainability. The initial BRT fleet will be procured under the project. The system is expected to benefit 500,000 people in the city.

The project will have significant resettlement impacts on 535 households due to acquisition of private arable land and demolition of permanent structures of two underpass markets having 84 shops.

Published in The Express Tribune, July 1^st, 2017.

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