The total investment cost of National Trade Corridor (NTC) highway investment plan for 2007-2014 is estimated at $5.36 billion, while Asian Development Bank (ADB) has announced that the maximum financing amount of $900 million will be available under Multitranche Financing Facility (MFF) for the programme.
According to final project updates of ADB released here on Friday the MFF comprises $890 million from OCR and $10 million equivalent from ADF resources. ADB observed that the programme is derived from Pakistan's long-term transportation strategy and is an integral part of the NTCIP.
The impact of the program will be trade growth and the outcome will be a more efficient NTC highway network and it will improve Pakistan's competitiveness and link the country more effectively to the outside world and also provide trade routes for others in the region.
The MFF is designed to finance part of the NTC highway investment plan through individual loans. The first tranche will be funded from OCR resources, and the ADF loan will also be provided to address non physical investment needs and the support component. Financing from OCR resources will be subject to interest to be determined in accordance with ADB's London interbank offered rate (LIBOR)-based lending facility.
ADB report stated that Government of Pakistan will make the proceeds of the loans available to NHA according to terms and conditions satisfactory to ADB. According to ADB Project Update Report, under the strategic framework "Vision 2030" the Pakistan Government plans to raise the trade to gross domestic product (GDP) ratio from 30 per cent to about 60 per cent.
This would be equivalent to $600 billion by 2030. To achieve this target, key actions under the strategy will be improving trade competitiveness and export diversification. Logistics are currently seen as a key constraint to raising competitiveness and attracting private sector investment.
They are also a bottleneck to increasing productivity as well as to deepening and diversifying the industrial base, both of which are necessary to provide sustainable jobs for a growing population. The National Highway Authority (NHA) is responsible for the operation, maintenance, and development of the national highway system
As a core component of NTCIP, NHA has developed the National Trade Corridor highway investment plan (NTC highway investment plan). It covers the corridor backbone from Peshawar to Karachi and the outlying links that connect Pakistan to China and Gwadar Port in Balochistan.
The initiative includes not only new road construction but also the improvement of over 3,500 km of roads, national highways, expressways, and motorways. The Asian Development Bank (ADB) is an active partner of the Government in the road sector and is involved in policy formulation including the National Transport Policy.
Comments
Comments are closed.