The governments of Pakistan and Japan signed here on Wednesday a note verbale whereby Japan would provide a soft loan of 207 million dollars (23.157 billion Yen) for two projects under its Official Development Assistance to Pakistan.
The two projects are Indus Highway Construction, Project (Phase-III) and Dadu-Khuzdar Transmission System Project.The note verbale was signed here by Economic Affairs Division Secretary Muhammad Akram Malik on behalf of Pakistan government and Ambassador of Japan to Pakistan Seiji Kojima represented his country.
Major assistance of this soft loan will be provided for the Indus Highway Construction Project (Phase-III) with an amount of 19.455 billion-Yen (174 million dollars) while 3.702 billion Yen (33 million dollars) will be allocated to Dadu-Khuzdar Transmission System Project.
The agreements are expected to be signed between the Economic Affairs Division Secretary and Senior Executive Director of Japan Bank for International Cooperation Tetsuo Shiouchi on December 15.
The concessional loans carry an interest rate of 1.3 percent and a repayment period of 30 years, including 10 years grace period. These projects would greatly help the infrastructure building on which the government places high priority. These would benefit Balochistan in particular.
As regards, Indus Highway Construction Project (Phase-III), the objective of this project is to strengthen the capacity of the Indus Highway (N-55), which forms an integral part of the national trade corridor. By construction of an additional two-lane carriageway with allied facilities along the 200-kilometre road section between Sehwan and Ratodero, it will contribute to socio-economic development of Pakistan.
The objective of Dadu-Khuzdar Transmission System Project is to supply sufficient and stable electricity to Balochistan by extending transmission line from Dadu to Khuzdar and construct 220KV/132KV grid station, thereby contributing to the economic development of the province and to the improvement of their livelihood.