EAD, AIIB sign $320.16m loan agreement for reconstruction of National Highway N-5
The agreement was signed between Muhammad Humair Karim Kidwai Secretary EAD and Konstantin Limitovskiy Chief Investment Officer, Public Sector & Project and Corporate Finance at AIIB. PHOTO: APP
The Economic Affairs Division (EAD) and the Asian Infrastructure Investment Bank (AIIB) on Tuesday signed a $320.16 million loan agreement for Phase-IA of the “Reconstruction of National Highway N-5 under Pakistan’s Resilient Recovery, Rehabilitation and Reconstruction Framework Project”.
The project will cover critical sections of the National Highway (N-5), which traverses Sindh, Punjab, and Khyber-Pakhtunkhwa, serving as a backbone of Pakistan’s transport network, said a news release.
Federal Minister Ahad Cheema witness the signing ceremony of loan agreement between Pakistan and @AIIB_Official . According to the agreement AIIB will provide USD 320.16 Million for Phase-IA of N-5 Highway Project.
For more details visithttps://t.co/SSXj0OWxK2 pic.twitter.com/XKJlQGt85xThe agreement was signed between EAD Secretary Muhammad Humair Karim Kidwai and AIIB Chief Investment Officer, Public Sector & Project and Corporate Finance (Global) Clients Konstantin Limitovskiy in the presence of Federal Minister for Economic Affairs Ahad Khan Cheema.
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A separate project agreement was also signed between AIIB and the National Highway Authority (NHA). The additional secretary, Ministry of Communications, and NHA CEO were also present.
Cheema appreciated the longstanding partnership with the AIIB, adding that the bank had consistently proven to be a reliable development partner of Pakistan. He said that the N-5 project would not only strengthen the country’s resilient infrastructure but would also play a significant role in enhancing regional connectivity, trade activities, and economic growth.
The EAD secretary appreciated the longstanding partnership with the AIIB, noting that AIIB had consistently proven to be a strong and reliable partner. He emphasised that the N-5 Road Project would further deepen this partnership, strengthen mutual trust and cooperation, while advancing Pakistan’s sustainable infrastructure network.
The N-5 corridor holds immense importance as it connects key regions of Pakistan, enhancing regional connectivity, strengthening sustainable infrastructure, and supporting economic growth across the country.
The AIIB chief investment officer highlighted the strong development collaboration with the government and expressed the strategic importance of the N-5 project as it served as part of an international transport corridor.
The N-5 reconstruction would be undertaken using modern, green, and climate-resilient design standards with state-of-the-art infrastructure, ensuring efficiency, sustainability, and long-term durability, he added.
The signing marked another important milestone in Pakistan-AIIB cooperation and reflected the shared commitment of both sides towards building resilient infrastructure, enhancing regional connectivity and promoting sustainable economic development.