Asian Development Bank, World Bank show interest in $6.8bn ML-1

Dawn reported that the Asian Development Bank (ADB) and the World Bank have shown an appetite for the 1,800km Karachi-Peshawar Main Line-1 railway. Its revised cost now stands at about $6.8bn after China withdrew its financing. Officials told a National Assembly committee that the ADB is under consideration as lead financier, with the Asian Infrastructure Investment Bank and the World Bank already pledging co-financing.

The European Investment Bank, Islamic Development Bank and Japan International Cooperation Agency have also signalled interest. The scheme goes beyond rehabilitating rail infrastructure, adding institutional and operational reforms meant to lift efficiency and service delivery at Pakistan Railways. After reassessment, the cumulative estimate has been revised to between $6.68bn and $6.80bn, down from roughly $9bn earlier.

The line is being designed to accommodate speeds of up to 160km per hour, although operations are currently planned at 120km per hour, a gap about which the committee expressed reservations. Construction is targeted to take about three years. The panel also recommended a coordinated federal and provincial meeting on Karachi and Sindh projects, and voiced serious concern over progress on the K-IV water project.