China vows $100mln grant for road infrastructure in Sindh
China will provide $100mln grant assistance to Pakistan to upgrade road infrastructure in Sindh under the Chinese-funded framework that envisages economic integration.
The governments signed a letter of exchange for rehabilitation of specific sections of National Highway (N-5) project. Under the agreement, China will provide grant assistance of RMB 659.8 million.
The signing ceremony was witnessed by Ambassador of China to Pakistan Nong Rong and Minister for Economic Affairs Khusro Bakhtyar. Rong said N5 is an important road that extends from the south part to the north and west border in Pakistan, and carries a large amount of traffic capacity. Four sections between Hala and Moro will be rehabilitated under the project.
“Unfortunately, this road was seriously damaged by the record flood in 2010,” the envoy said in a statement. At the request of the Pakistani government, the Chinese government helped repairing parts of N5 and N55 sections during 2011 and 2016. With the joint efforts by the Pakistani and Chinese workers, the rehabilitation work was completed at the end of 2016, and greatly improved the road conditions of the relevant sections.
Considering the importance of the N5 road, the Chinese government agrees to rehabilitate the remaining 66 kilometers of the N5 road with Chinese grant in accordance with the previous bilateral agreement.
The new project of rehabilitation of N5 road is the largest road project funded by Chinese grant in recent years in Pakistan. The implementation of this project will further increase the traffic capacity, while facilitating people’s travel along the route. Construction of the project will also create considerable employment, and promote related building materials and transportation sectors along the route. The Embassy will work closely with EAD and other relevant departments to ensure the project starts at the earliest.
During the meeting, bilateral economic relations, CPEC projects and other matters of mutual interest were discussed.
The minister for economic affairs lauded the grant assistance extended by China for various infrastructure and socioeconomic projects in Pakistan. The minister also appreciated the significant work of joint working groups on socioeconomic development and transport infrastructure under CPEC.
“Socioeconomic projects agreed therein are in line with the vision for socioeconomic uplift of the common people and enhanced economic activities in the country,” he said.
The second meeting of the joint working group on socioeconomic development under the CPEC framework was held in November via video link to discuss and review the projects under the $1 billion Chinese grant. The seventh meeting of the joint working group on transport infrastructure was held last year.
China is leading an estimated $60 billion worth of projects in Pakistan under its road and belt initiative that aims at infrastructure development and acceleration of the economic integration of countries along the route of the historic Silk Road.
CPEC is an integral part of the initiative and Pakistan is the foremost territory to make the initiative a success.