ADB Expected To Lead $2.5 Billion Financing For ML-1

Pakistan is seeking $2.5 billion from a consortium of international lenders to finance the first phase of the Main Line 1 (ML-1) railway project, with the Asian Development Bank (ADB) projected to take the lead.

Key points

• The $2.5 billion financing requirement will be arranged in tranches, Economic Affairs Minister Senator Ahad Cheema remarked separately.
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• Once the design is completed, the bank will work with the administration to move ahead with procurement and other preparations.
• Cheema stressed the need for close coordination among all stakeholders to keep the project on schedule.

While other lenders, including the Asian Infrastructure Investment Bank (AIIB) and World Bank, are projected to participate in the consortium, as reports indicate, ADB could provide more than $1 billion of the total financing.

Meanwhile, the $2.5 billion financing requirement will be arranged in tranches, Economic Affairs Minister Senator Ahad Cheema remarked separately. He was speaking after a session with an ADB delegation that reviewed progress on the ML 1 project. Govt Wants to Offer Rs. 2 Trillion Loan to Small Businesses.

Notably, the ADB informed the gathering that its technical team and project consultants were working on the project and that efforts were underway to finalize the project design in October. Once the design is completed, the bank will work with the administration to move ahead with procurement and other preparations.

Cheema stressed the need for close coordination among all stakeholders to keep the project on schedule. He additionally assured the ADB delegation that the administration would complete its requirements on time and provide the necessary backing.

In practice, the ML 1 project has faced repeated delays in securing financing. It was initially conceived under the National Trade Corridor and afterwards became part of the China Pakistan Economic Corridor, but financing arrangements were not finalized. Stay Connected with ProPakistani.

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Taken together, the developments around ADB Expected To Lead $2.5 Billion Financing For ML-1 point to a situation that is still moving, and the coming days should bring more clarity.