ISLAMABAD: The Asian Development Bank (ADB) has agreed to finance the much-awaited multibillion-dollar Mainline (ML-1) project for phased upgradation of the railway lines from Peshawar to Karachi.
Earlier, the bank had exited the project, as China was not willing to involve any other entity to finance and execute the project.
According to an official announcement made by the Economic Affairs Division, ADB President Masato Kanda, called on Minister for Economic Affairs Ahad Khan Cheema.
Secretary railways apprised the ADB president and his team on the scope and financing needs of the project. The minister expressed confidence that the ADB will provide support for the project in a phased manner keeping in view the significance for passenger transportation, trade, and regional connectivity.
He also stressed the need to reduce the timelines of processing of ML-1 project for early start of implementation. He urged the ADB president to consider reforms in the framework of credit guarantees regarding the manner in which headroom is tapped.
President Kanda extended heartfelt condolences on the lives lost and populations affected by the recent devastating monsoon rains and floods.
Besides, he indicated the ADB’s commitment to support the ML-1 recognizing its strategic importance for trade, connectivity, and regional integration, and early commencement of Rohri- Karachi section.
The meeting concluded with the signing of an agreement between the Asian Development Bank and the Capital Development Authority (CDA). Under this agreement, the CDA will provide land to the ADB for construction of a new office building in Islamabad.
