48404-003: Central Asia Regional Economic Cooperation Corridor Development Investment Program-Tranche 1 | Asian Development Bank

Pakistan: Central Asia Regional Economic Cooperation Corridor Development Investment Program-Tranche 1

Sovereign (Public) Project | 48404-003 Status: Approved

The project proposed for financing under the requested PFR is:

(i) building an additional 2-lane carriageway of 66 km along the existing 2-lane carriageway of Petaro-Sehwan road;

(ii) building an additional 2-lane carriageway of 43 km along the existing 2-lane carriageway of Ratodero-Shikarpur road;

(iii) rehabilitating the existing 34 km 4-lane carriageway of Dara Adamkhel-Peshawar road; and

(iv) developing NHA's capacity through due diligence advisory services and assistance with project implementation.

Project Details

Project Officer
Pyo, Dong-Soo Central and West Asia Department Request for information
Country
  • Pakistan
Modality
  • Loan
Sector
  • Transport
 
Project Name Central Asia Regional Economic Cooperation Corridor Development Investment Program-Tranche 1
Project Number 48404-003
Country Pakistan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3574-PAK: Central Asia Regional Economic Cooperation Corridor Development Investment Program-Tranche 1
Ordinary capital resources US$ 180.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Knowledge solutions
Sector / Subsector

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description

The project proposed for financing under the requested PFR is:

(i) building an additional 2-lane carriageway of 66 km along the existing 2-lane carriageway of Petaro-Sehwan road;

(ii) building an additional 2-lane carriageway of 43 km along the existing 2-lane carriageway of Ratodero-Shikarpur road;

(iii) rehabilitating the existing 34 km 4-lane carriageway of Dara Adamkhel-Peshawar road; and

(iv) developing NHA's capacity through due diligence advisory services and assistance with project implementation.

Project Rationale and Linkage to Country/Regional Strategy

Located at the crossroads of Afghanistan, Central Asia, the People's Republic of China (PRC), India, and Iran, Pakistan has huge potential to become a regional transport and trade hub. It can maximize its national capabilities and resources to support trade-based economic growth mainly by playing the role of a transit trade hub. However, transit trade through Pakistan is still limited while trade remains maritime-centric, aligned with the southern gateway port of Karachi, and focused on major global developed markets like North America, Europe, and the Middle East. Poor transport and border cross-point infrastructure and costly transport and cross-border services pose an obstacle to exploiting the untapped potential.

Pakistan is putting its effort toward more land-based regional trade with neighboring countries through participation in regional programs. In 2011, Pakistan joined the CAREC Program. Pakistan's transport corridors offer the shortest route to the sea for landlocked Afghanistan, Central Asia, and the PRC's Xinjiang province. Pakistan's accession to CAREC enables subregions in Asia and Europe to be virtually integrated and seamlessly connected from East Asia through South Asia and Central Asia to Europe. In 2013, the CAREC transport corridors were extended to Pakistan to provide Afghanistan, Central Asia, and the PRC with connection to the ports of Gwadar and Karachi on the Arabian Sea. CAREC Corridor 5, extended to Pakistan along N55, links PRC and Afghanistan to the Arabian Sea and provides the PRC's Xinjiang province and landlocked countries in Central Asia the shortest trade route through the Karachi Port. Improving CAREC Corridor 5 along N55 in Pakistan will enable Pakistan to realize potential economic benefits from accelerated trade with surrounding countries. The CAREC Transport and Trade Facilitation Strategy (TTFS) 2020 endorsed by the CAREC ministers at the 12th ministerial conference in 2013 proposes investment projects to build the CAREC corridors in Pakistan.

The country partnership strategy 2015 2019 for Pakistan highlights the focus on strengthening regional connectivity in transport and energy through ADB support for (i) the extension of CAREC corridors to the ports of Gwadar and Karachi, (ii) the Turkmenistan Afghanistan Pakistan India natural gas pipeline project, and (iii) transport and trade facilitation with emphasis on developing economic corridors to expand economic opportunities for communities in surrounding areas. This strategic direction is in line with ADB's Regional Cooperation and Integration Strategy (2006) and the Operational Plan for Regional Cooperation and Integration (2016), which aim to strengthen connectivity between economies and raise competitiveness in connected markets.

ADB, as the CAREC Secretariat, played an instrumental role in defining CAREC corridors in Pakistan in 2013. From its experience in road network development in Pakistan, ADB knows transit traffic flow patterns and the network effects the CAREC corridors will create. ADB's sector road map in Pakistan will help the country become a regional transport and transit hub in line with the development of the CAREC corridors. ADB's active involvement in CAREC corridor development through the proposed MFF will encourage the government to accord high priority in terms of allocating national resources to build a seamless regional connectivity among CAREC countries.

Impact Regional connectivity and trade enhanced in CAREC corridors defined by project
Project Outcome
Description of Outcome Efficiency for road traffic along the CAREC Corridors improved
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

CAREC Corridor along N55 constructed or rehabilitated

NHA capacity strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide, Dara, Peshawar, Petaro, Ratodero, Sehwan, Shikarpur
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Project 1 is classified category B for environment. An environmental assessment and review framework and draft initial environmental examinations were prepared and disclosed on the ADB website. The project roads do not cross or are not located near protected areas. The environmental assessment established that the project can have site-specific environmental impacts related to air and water pollution, noise and vibration, loss of roadside trees, and traffic disruptions during construction. Because of construction of additional lanes and increase in traffic, the project can split communities and disrupt farming patterns. Adequate mitigation measures will be included in and implemented through an environmental management plan. The project design will incorporate measures for preserving community cohesion such as improved crossings (underpasses and overpasses) and access to public facilities. Public consultations were conducted in October November 2016. Overall responsibility for the implementation of the plan will rest with contractors. NHA's project implementation unit will hire an environmental and social officer to supervise the implementation of the project's environmental safeguards.
Involuntary Resettlement Project 1 will acquire 512,737.1 m2 of land (189,393.0 m2 for Petaro Sehwan section and 323,344.1 m2 for Ratodero Shikarpur section) and permanently affect 140 structures (59 residential structures and 71 commercial structures) located within the right-of-way. About 356 households (with 2,411 members) will be affected. Of these, 548 persons will experience significant resettlement impacts, of which 412 persons will be physically displaced while 136 persons will lose 10% or more of their productive assets.
Indigenous Peoples The project road sections traverses through settled areas of Sindh and Khyber Pakhtunkhwa provinces and tribal group with secluded cultural, socioeconomic, and administrative institutions different than mainstream population were not identified.
Stakeholder Communication, Participation, and Consultation
During Project Design

Multiple rounds of public consultations were held by technical assistance consultants during project preparation. Local authorities and relevant government departments, traders, freight forwarders, transporters, and commuters were engaged to design the investment facility and packaging of tranche projects. Sessions were held with potentially displaced persons including poor and vulnerable households between January April 2017. Mitigations were incorporated in the preliminary design to avoid or minimize involuntary resettlement impacts, as well as LAR impacts; eligibility and entitlements were explained. Consultation, participation and information disclosure strategy were designed and incorporated in the LARPs for continued consultation process with affected persons and communities and other stakeholders, including poor and vulnerable people.

There is limited scope for civil society organizations to participate and contribute in project design. However, NHA will collaborate and consult with civil society organizations during detailed design and assess their role and level of participation in the planning, implementation, and monitoring of LARPs.

A project communication strategy on consultation, participation, and information disclosure is designed and included in draft LARPs to ensure stakeholders, particularly poor and vulnerable people, are engaged during the consultative process and are informed on resettlement planning, implementation, monitoring, and resolving grievances.

During Project Implementation The project safeguard team in project implementation unit assisted by resettlement specialists under the supervision consultants will liaise with local communities and civil society organizations for the consultation, participation, and information disclosure on project design and LAR progress, recording and redress of grievances, LARP implementation, monitoring and execution of project works, etc.
Business Opportunities
Consulting Services The consultants under the project will be recruited in accordance with ADB''s Guidelines on the Use of Consultants (2013, as amended from time to time).
Procurement Procurement of goods, civil works, and related services financed from the ADB loan will be done in accordance with ADB's Guidelines for Procurement (2015, as amended from time to time).
Responsible ADB Officer Pyo, Dong-Soo
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Transport and Communications Division, CWRD
Executing Agencies
National Highway Authority
Room No. 110, 1st Floor,
NC Building, Sector G-9/1
Islamabad, Pakistan
Timetable
Concept Clearance -
Fact Finding -
MRM 26 Jul 2017
Approval 28 Sep 2017
Last Review Mission -
Last PDS Update 29 Sep 2017

Loan 3574-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Sep 2017 - - 31 Dec 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 195.00 Cumulative Contract Awards
ADB 180.00 28 Sep 2017 0.00 0.00 0%
Counterpart 15.00 Cumulative Disbursements
Cofinancing 0.00 28 Sep 2017 0.00 0.00 0%

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 Public Communications Policy (PCP) 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.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) 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.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.