ADB Approves $320 Million Loan for Road Construction in KP
The Asian Development Bank (ADB) has approved a $320 million loan to support the rehabilitation of roads in the province of Khyber Pakhtunkhwa in Pakistan, enhancing safe and all-weather connectivity in rural areas.
The Khyber Pakhtunkhwa Rural Roads Development Project will upgrade around 900 kilometers of rural roads in the province that are susceptible to floods and are in poor condition. These cover key routes that link remote communities to education, health care, and markets. The project includes measures to incorporate climate-resilient design, road safety enhancement, and sustainable maintenance practices.
“Road transport is both a lifeline to the people and a key component of socioeconomic development in Pakistan. This vital infrastructure project will reduce travel time, lower transportation costs, and increase access to economic opportunities for millions of residents in Khyber Pakhtunkhwa,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “By providing better access to markets and services, we are empowering local communities and driving inclusive economic growth in one of Pakistan’s most underserved regions.”
Annual rainfall and temperature patterns have significantly increased in parts of the province, and the lack of resilient infrastructure escalated the impact of disasters on people and livelihoods. Flooding events since 2010 have substantially damaged the road network, hampering connectivity and escalating transportation costs.
The project will offer technical and financial support to assist the government in preparing long-term targeted interventions that will enhance the climate resilience and sustainability of the province’s road network.“ADB will help the government conduct a comprehensive study on flood susceptibility, with a focus on landslide vulnerability across the province, to identify priority roads,” said ADB Senior Transport Specialist Seunghyun Kim. “We will support the government in preparing concessional contracts for the operation and maintenance of two tourism roads, which will contribute to the sustainability of the road network.”