ADB approves $320 million loan for KPK road project

ADB approves $320 million loan for KPK road project

By Staff Reporter

ISLAMABAD: The Asian Development Bank approved a $320 million loan to upgrade rural roads in Pakistan’s Khyber Pakhtunkhwa province, enhancing connectivity and economic growth, a statement said on Friday.

The Khyber Pakhtunkhwa Rural Roads Development Project will rehabilitate 900 kilometers of roads prone to flooding and in disrepair, linking remote communities to essential services and markets.

These cover key routes that link remote communities to education, health care, and markets. The project includes measures to incorporate climate-resilient design, road safety enhancement, and sustainable maintenance practices.

“Road transport is both a lifeline to the people and a key component of socioeconomic development in Pakistan. This vital infrastructure project will reduce travel time, lower transportation costs, and increase access to economic opportunities for millions of residents in Khyber Pakhtunkhwa,” said ADB Director General for Central and West Asia Yevgeniy Zhukov.

“By providing better access to markets and services, we are empowering local communities and driving inclusive economic growth in one of Pakistan’s most underserved regions.”

Annual rainfall and temperature patterns have significantly increased in parts of the province, and the lack of resilient infrastructure escalated the impact of disasters on people and livelihoods. Flooding events since 2010 have substantially damaged the road network, hampering connectivity and escalating transportation costs.

The project will offer technical and financial support to assist the government in preparing long-term targeted interventions that will enhance the climate resilience and sustainability of the province’s road network.

“ADB will help the government conduct a comprehensive study on flood susceptibility, with a focus on landslide vulnerability across the province, to identify priority roads,” said ADB Senior Transport Specialist Seunghyun Kim.

“We will support the government in preparing concessional contracts for the operation and maintenance of two tourism roads, which will contribute to the sustainability of the road network.”

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