950805

$45m ADB

loan to build

new bridge

on Indus

KARACHI: The Asian Development Bank (ADB) has approved a 45 million dollar loan from its ordinary capital resources to construct a bridge across Indus river connecting Balochistan and Northern part of Sindh province.

The new bridge to be completed by March 1999, will reduce traffic congestion on the 62-year old Lloyd Barrage at Sukkur which is showing signs of structural weakness and is a severe bottleneck for the 12,000 motor vehicles that cross the structure each day.

The project which has been given highest priority by the government in the country's road master plan, envisages construction of a 1600-meter four-lane bridge across the Indus river.

It will help strengthen the financial position of the National Highway Authority (NHA) through tolls for maintenance and highway development and also lead to lower transport costs across the river and, in this way, support agricultural and industrial development in the area. Greater economic efficiency and increased job opportunities are also expected.

The total cost of the project is about 64.7 million dollars in foreign and local currencies. The foreign exchange cost of 35.1 million dollars will be met by the ADB loan along with a part of the local currency cast.

A technical assistance grant of 475,000 dollars will also be provided for a study of the measures required to promote private sector participation in highway financing, construction and operation.

The other sources of finance are 19.7 million dollars equivalent from the government of Pakistan. The NHA would be the project's executing agency.-PPI