Pakistan: National Trade Corridor Highway Investment Program (Tranche 1)
The government requested financing from the Asian Development Bank (ADB) to support the National Highway Authority (NHA) in constructing new roads and improving existing ones along the backbone from Peshawar to Karachi, to Gwadar Port in Baluchistan, as well as connections between Pakistan and the People’s Republic of China. Following the completion of loan preparatory activities in May 2007 and loan negotiations in October 2007, the ADB Board in December 2007 approved a multitranche financing facility (MFF) for $900 million to support the NTCIP–Tranche 1. The MFF consisted of a loan of $545 million from ADB’s ordinary capital resources (OCR) to finance critical sections of the north-south corridor and a separate loan equivalent to SDR 6.5 million ($10 million) from the Asian Development Fund (ADF) for the institutional strengthening of the NHA. This validation covers tranche 1 of the MFF program. IED overall assessment: Less than successful.