Project Name National Trade Corridor Highway Investment Program, Tranche 2
Project Number 40075-033
Country Pakistan
Project Status Active
Project Type / Modality of Assistance Loan

Source of Funding / Amount
Grant 0434-PAK: National Trade Corridor Highway Investment Program, Tranche 2
Department for International Development US$ 82.40 million
Loan 3121-PAK: National Trade Corridor Highway Investment Program, Tranche 2
Ordinary capital resources US$ 117.60 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description The Project 2 (E35: Hasanabdal-Havellian Expressway) is part of national trade corridor. It will connect existing M1 at Hasanabadal to Havellian, and will further extend to Abbotabad and Mansehra to North. The Project is almost parallel with existing N5 which is being urbanized in many sections. Due to high traffic volume and deteriorated road condition, E35 is becoming necessary in order to improve the sub regional connectivity within Pakistan, and to China, Afghanistan and other central Asian countries.
Project Rationale and Linkage to Country/Regional Strategy

The proposed Project 2 is part of the Central Asia Regional Economic Cooperation (CAREC). It will be PAK Investment Project 119 under corridor 5 of updated CAREC. It will improve regional connectivity through improving linkages with the neighboring countries and developing inter-provincial linkages to improve sub-regional connectivity. The proposed project 2 will construct a north-south access controlled expressway system to link the northern area of the country to existing expressway network and lead to better connectivity within Pakistan, to China and Afghanistan and other central Asian countries.

The Project 2 is part of the famous Karakoram Highway (KKH), which connects Kashgar of China to Abbottabad of Pakistan and extends to meet the Grand Trunk Road at Hassanabad, and it is also a part of ancient Silk Road. The Project is in line with the Country Partnership Strategy for 2009-2013 and is consistent with ADB's continuous supports on the NTCIP.

Impact Efficiency gain for road traffic operation along the National Trade Corridor

Project Outcome

Description of Outcome Improved regional network for movement of goods and people along E35 expressway
Progress Toward Outcome As per government's request ADB approved on 29 April 2016, the widening of the highway from 4 lanes to 6 lanes (including structures and pavements).
Implementation Progress
Description of Project Outputs

Expressway connecting Hassanabdal and Sarai Saleh constructed and operational

NHA's institutional capacity in social safeguards improved

Status of Implementation Progress (Outputs, Activities, and Issues)

2 Civil works contracts have been mobilized for the construction of 39 km road in March 2015.

Physical progress on package 1 is 50% and for package 2 is 32%.

Social safeguards implementation is complied with the ADB's Safeguards Policy Statement.

Social Safeguards Management Consultant (SSMC ) mobilized in Q1-2015.

Geographical Location Punjab/Khyber Pakhtunkhwa

Safeguard Categories

Environment A
Involuntary Resettlement A
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects

Tranche 2 is a new alignment through areas that are sparsely populated, therefore an Environment Category A project; there are no protected areas in the vicinity with no significant or thick vegetation.

The environmental impacts identified are largely concentrated in the construction phase, due to the sheer scale of the project, appropriate and specific mitigation measures.

Involuntary Resettlement

Project 2 is classified category A for the purposes of social safeguards including involuntary resettlement. About 9,000 households will be affected by the project , and the impacts vary from household to household, and primarily involve the acquisition of portions of agricultural land. Some residential lands will be affected, however all households will be able to relocate either on remaining land, or land within close proximity to the affected lands. The LARF has been updated, endorsed by NHA, cleared by ADB and has been disclosed/uploaded to the ADB and NHA websites. Three LARPs have been prepared in accordance with the approved updated LARF, the Land Acquisition Act of 1894 and ADB SPS, 2009. The resettlement planning was informed by a detailed independent land assessment study to ensure prices proposed for compensation approximate full replacement cost as required by SPS 2009.

Social Safeguards: The project required acquisition of 849.55 acres of land, which has been fully acquired and about 6,682 APs (76% of total 8,759 APs) have been paid an amount of Rs. 1,184.5 million (94%) from the total land compensation amount of Rs. 1254.4 million. The remaining amount of Rs. ~70.0 million (6%) is yet to be paid to about 2,077 APs. The payment process continues to be very slow mainly due to some procedural matters of the Land Acquisition Act 1894 (LAA). Improvement in payments requires continuous support of social mobilizers and resettlement specialist of social safeguard management consultant (SSMC) to NHA's E-35 team in expediting the payments in different sections of the road that have been put on hold for construction due to the incomplete payments. NHA is preparing an EOT of SSMC to expedite the payments to APs.

Safeguards Capacity Strengthening through LAR Training: The project's design and monitoring framework (DMF) requires (a) improvement in NHA's institutional capacity in social safeguards management; and (b) at least 30 NHA staff trained in social and environment issues. The SSMC, hired by NHA under institutional strengthening component of the loan, has so far conducted several LAR training events at PIU and NHA's regional offices in Peshawar, Quetta and Karachi. Over 50 officials from NHA's staff, contractors and consultants participated and ranked the training sessions as quite useful. NHA is planning to organize a training workshop for its core project staff with focus on trouble shooting of project implementation issues. The SSMC will prepare a training module in consultation with NHA and impart training sessions through more knowledgeable and senior safeguard experts. The training date and venue will be decided next month.

Indigenous Peoples There will no indigenous people in the project affected area.
Stakeholder Communication, Participation, and Consultation
During Project Design The consultation process will continue to share the latest development interventions in the project and take responses from the APs.
During Project Implementation The consultation process will continue during project implementation.

Business Opportunities

Consulting Services All consulting services financed under Tranche 2 will be procured in accordance with the Guidelines on The Use of Consultants by Asian Development Bank and Its Borrowers (2010, as amended from time to time).
Procurement Procurement of all civil works, equipment and goods will be undertaken in accordance with ADB's Procurement Guidelines (2010, as amended from time to time).

Responsible Staff

Responsible ADB Officer Karki, Pawan
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Pakistan Resident Mission
Executing Agencies
National Highway Authority
Room No. 110, 1st Floor,
NC Building, Sector G-9/1
Islamabad, Pakistan


Concept Clearance 28 Jul 2007
Fact Finding -
MRM 25 Nov 2013
Approval 01 Apr 2014
Last Review Mission -
PDS Creation Date 31 Jul 2009
Last PDS Update 23 Sep 2016

GrantĀ 0434-PAK

Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Jul 2015 01 Sep 2015 23 Sep 2015 17 Dec 2017 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 82.40 Cumulative Contract Awards
ADB 0.00 31 Jul 2015 0.00 69.69 85%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 82.40 31 Jul 2015 0.00 58.67 71%

LoanĀ 3121-PAK

Approval Signing Date Effectivity Date Closing
Original Revised Actual
01 Apr 2014 17 Sep 2014 11 Nov 2014 10 Dec 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 155.60 Cumulative Contract Awards
ADB 117.60 01 Apr 2014 94.26 0.00 80%
Counterpart 38.00 Cumulative Disbursements
Cofinancing 0.00 01 Apr 2014 27.44 0.00 23%

This page was generated from on 27 February 2017