fbpx 48402-002: National Motorway M-4 Gojra–Shorkot–Khanewal Section Project - Additional Financing | Asian Development Bank

Pakistan: National Motorway M-4 Gojra–Shorkot–Khanewal Section Project - Additional Financing

Sovereign (Public) Project | 48402-002 Status: Active

The additional financing will support an increase in the scope of the current project by constructing a 64-kilometer (km) four-lane, access-controlled motorway connecting Shorkot and Khanewal in Punjab Province, which is the last missing section of the national motorway M-4 to be constructed. The project will facilitate north-south connectivity, improve quality and efficiency of road transport services, and promote inclusive economic growth.

Project Details

Project Officer
Ghafoor, Khurram Central and West Asia Department Request for information
Country
  • Pakistan
Modality
  • Grant
  • Loan
Sector
  • Transport
 
Project Name National Motorway M-4 Gojra–Shorkot–Khanewal Section Project - Additional Financing
Project Number 48402-002
Country Pakistan
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0482-PAK: National Motorway M-4 Gojra Shorkot-Khanewal Section Project - Additional Financing
Department for International Development US$ 34.00 million
Loan 3395-PAK: National Motorway M-4 Gojra Shorkot-Khanewal Section Project - Additional Financing
Ordinary capital resources US$ 100.00 million
Loan 8308-PAK: National Motorway M-4 Gojra Shorkot-Khanewal Section Project - Additional Financing
Asian Infrastructure Investment Bank US$ 100.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Transport / Transport policies and institutional development

Gender Equity and Mainstreaming No gender elements
Description The additional financing will support an increase in the scope of the current project by constructing a 64-kilometer (km) four-lane, access-controlled motorway connecting Shorkot and Khanewal in Punjab Province, which is the last missing section of the national motorway M-4 to be constructed. The project will facilitate north-south connectivity, improve quality and efficiency of road transport services, and promote inclusive economic growth.
Project Rationale and Linkage to Country/Regional Strategy

The primary north- south transport corridor in Pakistan runs from Torkham on the northern border with Afghanistan and passes through primary production and population centers such as Peshawar, Islamabad, Faisalabad, Lahore, Khanewal, Multan, and Muzaffargarh, before reaching the port city of Karachi in the south. The corridor, which is about 1,800 km long, comprises national highways and motorways and connects the key centers of economic activity in the country. The corridor serves the economy of an area that accounts for 80%- 85% of Pakistan's gross domestic product (GDP) and, in the regional context, forms an integral part of the Central Asia Regional Economic Cooperation (CAREC) corridors 5 and 6. After Pakistan's accession to the CAREC Program in 2010, the corridors have become vital trading routes between landlocked Central Asian nations and Pakistan's warm-water ports of Gwadar, Karachi, and Port Qasim on the Arabian Sea.

The national motorway M-4, connecting Faisalabad with Multan, will be a part of the north south transport corridor. Its area of influence, which includes Faisalabad, Multan, and the entire Punjab province, accounts for about 56% of the country's population and for 59% of the country's GDP. The M-4 will extend the already completed M-1, M-2, and M-3 motorways southward and shorten the distance between Multan and the twin cities of Islamabad and Rawalpindi in the north. The Faisalabad-Gojra section (58 km) of the M-4 was completed in 2014 with financing from the Asian Development Bank (ADB), while the Islamic Development Bank supported the completion of the adjoining Khanewal-Multan section (57 km) in 2015. Civil works for the Gojra-Shorkot section (62 km), cofinanced by ADB and the Government of the United Kingdom (footnote 1), commenced in April 2016. The proposed additional financing will be applied to the construction of the remaining 64 km section between Shorkot and Khanewal. Upon completion, the new four-lane, access-controlled M-4 will provide a faster, safer, and more cost-effective alternative to the existing narrow and congested routes, notably in the heavily trafficked Faisalabad and Khanewal-Multan-Muzaffargarh areas.

The increase in scope and the additional financing do not change the development objectives of the current project. The project is consistent with the strategic goals and government priorities. The transport sector in Pakistan contributes about 10% to the GDP and employs about 2.3 million people (about 6% of the active labor force of Pakistan). Road transport dominates Pakistan's transport system, accounting for almost 96% of freight traffic in ton-kilometers and 92% of passenger traffic in passenger-kilometers. An improved north- south corridor will reduce the time and cost of moving goods and people along the entire logistic and supply chain. It will be instrumental in removing one of the key constraints to raising competitiveness, attracting private sector investment, increasing productivity, as well as deepening and diversifying the industrial base. The project will thus go a long way of providing sustainable jobs to a growing population. The project is also consistent with ADB's country partnership strategy, 2015- 2019 for Pakistan, fits with ADB''s Midterm Review of Strategy 2020, supports the CAREC Transport and Trade Facilitation Strategy 2020, and is included in ADB's country operations business plan, 2016- 2018 for Pakistan.

Impact Modernization of transport infrastructure and greater regional connectivity to support a vibrant and growing economy
Project Outcome
Description of Outcome An efficient and safer transport corridor between Islamabad, Faisalabad, and Multan that enhances connectivity between the various parts of the country
Progress Toward Outcome This is a continuous process and will be assessed from time to time or as the need arises.
Implementation Progress
Description of Project Outputs

126 km of four-lane, access-controlled motorway connecting Gojra, Shorkot, and Khanewal constructed and serviceable

Safeguard and contract administration capacity of the NHA strengthened

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

The submission of safeguards monitoring reports are being closely monitored

The ADB safeguards team are also conducting reviews to ensure that it is implemented with good quality.

This is being monitored and assessed

Civil works contracts commenced on 15 December 2016. Construction works are ongoing.

Geographical Location Khanewal District, Shorkot
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

Motorway M-4 (Faisalabad-Khanewal) is 184 km long and its alignment has been divided into three sections; section 1 of Faisalabad to Gojra (completed and open for traffic in March 2015); section 2 of Gojra to Shorkot has recently been approved and the contractor has commenced works in April 2016; and section 3 of Shorkot to Khanewal. An environmental impact assessment (EIA) including environmental management plan (EMP) for the entire alignment (covering three sections of the M-4 motorway) was originally approved in 2007. Subsequently, the EIA report was updated to meet the requirements of ADB's Safeguard Policy Statement (2009) and new national legal requirements, and disclosed on ADB's website in August 2015 at the time of processing of the current project. The EIA has been further updated in 2016 to incorporate additional environmental baseline information, environmental management costs, new public consultations and other pertinent details and data for the Gojra Khanewal section. This updated EIA has been approved by ADB and Government of Pakistan and disclosed on ADB's website on 12 April 2016.

The environmental impacts identified are largely concentrated in the construction phase. Soil erosion, dust, and noise impacts are likely to be significant. Noise impacts will persist into the operational phase. The project design has factored in climate change risks and adaptation measures as well as community concerns. The environmental management plan (EMP) includes measures to minimize anticipated impacts during construction and operation. Prior to construction, contractors will update the EMP into a site-specific environmental management plan (SSEMP). The construction supervision consultant, the Environment, Afforestation, Land, and Social Division of the NHA, and ADB will closely monitor the implementation of the SSEMP.

Involuntary Resettlement A land acquisition and resettlement plan (LARP) was prepared for the 64 km M-4 Section III (Shorkot-Khanewal) which will cover land acquisition for the construction of new 4-lane carriage way with four interchanges for which right of way (100 meter wide carriageway and 40 meter wide for interchanges loops carriageway) is to be acquired. The proposed project will affect 3,429 households or about 23,186 affected persons. Of which, 2,754 persons will lose more than 10% of their productive land and 162 households with 1,302 members will be physically displaced. The LARP has been appropriately disclosed to all affected persons and was web disclosed on 20 January 2016. The compensation rate for the affected land has been confirmed through an independent land valuation study and is currently being implemented and is expected to be completed by Q3, 2016. The PIU as the capacity for implementing involuntary resettlement. A functioning grievance redress mechanism has been established on ground so that all issues are being addressed including those noted in the independent valuation study. The PIU in completing the compensation payments, information disclosure, consultation activities, grievance redress and internal monitoring and verify LAR implementation. ADB will continue to closely monitor the implementation to ensure that SPS and requirements are followed.
Indigenous Peoples No indigenous peoples as defined under ADB's Safeguard Policy Statement. No indigenous communities will be affected by the project and, accordingly, no indigenous peoples planning documents are required.
Stakeholder Communication, Participation, and Consultation
During Project Design Since the preparatory stages of the project, public consultations with local authorities and populations have been held continuously to disseminate project-related information and discuss issues, such as potential impacts during civil works. Local communities working and/or residing along the proposed M-4 section have been consulted to ensure project inclusiveness. Public consultations will be held regularly during implementation to provide updated information on project as well as safeguards implementation progress and ensure community involvement at different stages in project cycle. With due consideration to socio-cultural sensitivities in the area, consultations will be held separately with men and women, and at times and places convenient to each. The executing agency has been conducting public consultation with local communities and civil society organizations during project preparation, and will continue to do so in conjunction with the local authorities.
During Project Implementation NHA, the consultants, and ADB will continue to conduct needed stakeholder consultations during project implementation.
Business Opportunities
Consulting Services This is an additional financing. The consulting firm recruited under the current project will continue to provide construction supervision services for civil works under the additional financing.
Procurement Procurement of works is undertaken in accordance with ADB's Procurement Guidelines (April 2015 as amended from time to time). The procurement applies universal procurement, i.e., open to all bidders and no nationality restrictions apply. International competitive bidding procedures was used for civil works contracts. The two civil works contracts were awarded in September and October 2016.
Responsible ADB Officer Ghafoor, Khurram
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
Timetable
Concept Clearance -
Fact Finding 08 Mar 2016 to 15 Mar 2016
MRM 15 Apr 2016
Approval 24 Jun 2016
Last Review Mission -
Last PDS Update 24 Sep 2018

Grant 0482-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Jun 2016 20 Jun 2016 01 Sep 2016 31 Mar 2020 - 01 Aug 2020
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 34.00 Cumulative Contract Awards
ADB 0.00 10 Jun 2016 0.00 30.12 89%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 34.00 10 Jun 2016 0.00 30.12 89%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory - Satisfactory - Satisfactory

Loan 3395-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Jun 2016 20 Jun 2016 01 Sep 2016 31 Dec 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 139.00 Cumulative Contract Awards
ADB 100.00 10 Jun 2016 49.81 0.00 67%
Counterpart 39.00 Cumulative Disbursements
Cofinancing 0.00 10 Jun 2016 50.95 0.00 69%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory - Satisfactory - Satisfactory

Loan 8308-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Jun 2016 25 Jun 2016 02 Sep 2016 31 Dec 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 0.00 24 Jun 2016 0.00 75.24 89%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 100.00 24 Jun 2016 0.00 74.05 88%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
National Motorway M-4 Gojra–Shorkot Section Project - Additional Financing: Audited Project Financial Statements (July 2018-June 2019) Audited Project Financial Statements Dec 2019
National Motorway M-4 Gojra–Shorkot Section Project - Additional Financing: Audited Project Financial Statements (July 2017-June 2018) Audited Project Financial Statements Dec 2018
National Motorway M-4 Gojra - Shorkot- Khanewal Section Project – Additional Financing: Audited Financial Statements (1 July 2016 – 30 June 2017) Documents Produced Under Grant/Loans/TA Oct 2018
National Motorway M-4 Gojra–Shorkot– Khanewal Section Project - Additional Financing: Procurement Plan Procurement Plans Jul 2018
National Motorway M-4 Gojra–Shorkot Section Project - Additional Financing: Audited Project Financial Statements (July 2016-June 2017) Audited Project Financial Statements Jan 2018
Grant Agreement (Externally Financed) for Grant 0482-PAK: National Motorway M-4 Gojra-Shorkot-Khanewal Project - Additional Financing Grant Agreement Jun 2016
Project Agreement for Loan 3395-PAK and Grant 0482-PAK: National Motorway M-4 Gojra-Shorkot-Khanewal Section Project - Additional Financing Project/Program Agreements Jun 2016
Loan Agreement (Ordinary Operations) for Loan 3395-PAK: National Motorway M-4 Gojra-Shorkot-Khanewal Section Project - Additional Financing Loan Agreement (Ordinary Resources) Jun 2016
National Motorway M-4 Gojra-Shorkot-Khanewal Section Project - Additional Financing: Project Data Sheet (Urdu Translation) Translated PDS Jun 2016
National Motorway M-4 Gojra–Shorkot– Khanewal Section Project - Additional Financing: Report and Recommendation of the President Reports and Recommendations of the President May 2016
National Motorway M-4 Gojra–Shorkot– Khanewal Section Project - Additional Financing: Project Administration Manual Project/Program Administration Manual May 2016

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
National Motorway M-4 Gojra-Shorkot-Khanewal Section Project – Additional Financing: Internal Monitoring Report of Implementation of Land Acquisition and Resettlement Plan (January-June 2020) Social Monitoring Reports Jun 2020
National Motorway M-4 Gojra-Shorkot-Khanewal Section Project - Additional Financing: Internal Monitoring Report for Implementation of Land Acquisition and Resettlement Plan (April-June 2019) Social Monitoring Reports Jan 2020
National Motorway M-4 Gojra-Shorkot-Khanewal Section Project – Additional Financing: Internal Monitoring Report of Implementation of Land Acquisition and Resettlement Plan (July-December 2019) Social Monitoring Reports Dec 2019
National Motorway M-4 Gojra-Shorkot-Khanewal Section Project - Additional Financing: Environmental Monitoring Report (December 2016-April 2019) Environmental Monitoring Reports Jun 2019
National Motorway M-4 Gojra-Shorkot-Khanewal Section Project - Additional Financing: Internal Monitoring Report for Implementation of Land Acquisition and Resettlement Plan (January-March 2019) Social Monitoring Reports Apr 2019
National Motorway M-4 Gojra–Shorkot–Khanewal Section Project – Additional Financing: External Monitoring Report for Implementation of Land Acquisition and Resettlement Plan (As of March 2019) Social Monitoring Reports Mar 2019
National Motorway M-4 Gojra-Shorkot Section Project - Additional Financing: Resettlement Plan Addendum Resettlement Plans Feb 2019
National Motorway M-4 Gojra-Shorkot-Khanewal Section Project - Additional Financing: Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Jan 2019
National Motorway M-4 Gojra -Shorkot-Khanewal Section Project - Additional Financing: Internal Monitoring Report for Implementation of Land Acquisition and Resettlement Plan (October-December 2018) Social Monitoring Reports Dec 2018
National Motorway M-4 Gojra–Shorkot Section Project - Additional Financing: External Monitoring Report for Implementation of Land Acquisition and Resettlement Plan (July-September 2018) Social Monitoring Reports Oct 2018
National Motorway M-4 Gojra–Shorkot Section Project - Additional Financing: Internal Monitoring Report for Implementation of Land Acquisition and Resettlement Plan (July-September 2018) Social Monitoring Reports Sep 2018
National Motorway M-4 Gojra-Shorkot-Khanewal Section Project - Additional Financing: Environmental Monitoring Report (January-June 2018) Environmental Monitoring Reports Jul 2018
National Motorway M-4 Gojra-Shorkot-Khanewal Section Project - Additional Financing: Section III External Monitoring Report of the Implementation of Land Acquisition and Resettlement Plan (January-March 2018) Social Monitoring Reports May 2018
National Motorway M-4 Gojra-Shorkot-Khanewal Section Project - Additional Financing: Environmental Monitoring Report (July-December 2017) Environmental Monitoring Reports Apr 2018
National Motorway M-4 Gojra-Shorkot-Khanewal Section Project - Additional Financing: Section III Social Monitoring Report No. 8 (January-March 2018) Social Monitoring Reports Apr 2018
National Motorway M-4 Gojra-Shorkot-Khanewal Section Project - Additional Financing: Section III Social Monitoring Report No. 7 (October-December 2017) Social Monitoring Reports Dec 2017
National Motorway M-4 Gojra-Shorkot-Khanewal Section Project - Additional Financing: Section III Social Monitoring Report No. 6 (July-September 2017) Social Monitoring Reports Oct 2017
National Motorway M-4 Gojra-Shorkot-Khanewal Section Project - Additional Financing: Section III External Resettlement Monitoring Report Social Monitoring Reports Sep 2017
National Motorway M-4 Gojra-Shorkot-Khanewal Section Project - Additional Financing: Section III Social Monitoring Report No. 5 (April-June 2017) Environmental and Social Monitoring Reports Jul 2017
National Motorway M-4 Gojra-Shorkot-Khanewal Section Project - Additional Financing: Environmental Monitoring Report (January-June 2017) Environmental and Social Monitoring Reports Jun 2017
National Motorway M-4 Gojra-Shorkot-Khanewal Section Project - Additional Financing: Section III Social Monitoring Report No. 4 (January-March 2017) Social Monitoring Reports Apr 2017
National Motorway M-4 Gojra–Shorkot–Khanewal Section Project - Additional Financing: Internal Monitoring Report (January 2017) Social Monitoring Reports Jan 2017
National Motorway M-4 Gojra-Shorkot Section Project - Additional Financing: Section III Shorkot-Khanewal Resettlement Plan Addendum Resettlement Plans Nov 2016
National Motorway M-4 Gojra–Shorkot–Khanewal Section Project - Additional Financing: Section III Social Monitoring Report No. 2 (July-September 2016) Social Monitoring Reports Oct 2016
National Motorway M-4 Gojra–Shorkot–Khanewal Section Project - Additional Financing: Section III External Resettlement Monitoring Report Social Monitoring Reports Oct 2016
National Motorway M-4 Gojra–Shorkot–Khanewal Section Project - Additional Financing: Section II Resettlement Monitoring Report (June-August 2016) Social Monitoring Reports Sep 2016
National Motorway M-4 Gojra–Shorkot–Khanewal Section Project - Additional Financing: Section III Quarterly Social Monitoring Report No. 1 (April-June 2016) Social Monitoring Reports Aug 2016
National Motorway M-4 Gojra–Shorkot– Khanewal Section Project - Additional Financing: Environmental Impact Assessment Environmental Impact Assessments Mar 2016
National Motorway M-4 Gojra-Shorkot Section Project - Additional Financing: Section III Shorkot-Khanewal Resettlement Plan Resettlement Plans Dec 2015

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

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Contracts Awarded

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