Press briefing of Cabinet Decision taken on 2012-07-11

Financial Assistance from the Asian Development Bank (ADB) for the Implementation of Northern Road Connectivity Project (Additional Financing)

- the main objective of the above project, which was started in 2010 with ADB Loan funding, is to improve the road connectivity between the Northern Province and the other parts of the country. About 170 Km. of National roads in the Northern and North Central Provinces and about 140 Km. of Provincial roads and selected bridges in the North Central Province are now being rehabilitated under this project. The total estimated cost of the ongoing projects is US $173 million, of which US $154 million has been provided by the ADB while the government contribution is US $18.6 million. An additional 80 Km. of national roads and 120 Km. of provincial roads have subsequently been identified for rehabilitation under this project. Loan negotiations will be held with the Asian Development Bank to obtain additional financing of US $98 million (approximately Rs.11 billion) to meet the cost of the additional 200 Km. of the project. The government contribution would be US $14.8 million. The proposal made by H.E. the President, in his capacity as the Minister of Finance and Planning, to proceed with the work on arrangements of the ADB loan, was approved by the Cabinet.