Active Development AidData Chinese Aid

Chinese Government provides RMB 659.8 million grant for Rehabilitation of Specific Sections of National Highway N-5 Project

¥659.8K RMB

Funder	China Ministry of Commerce
Recipient Organization	Government of Pakistan
Country	Pakistan
Start Date	Dec 31, 2020
End Date	Jul 27, 2026
Duration	2,034 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`92629`

Grant Description

On December 31, 2020, the Chinese Government and the Government of Pakistan signed letters of exchange, which committed RMB 659.8 million ($100 million) of grant funding for the Rehabilitation of Specific Sections of the National Highway N-5 Project.

The purpose of this project is to rehabilitate four sections (measuring 66 km in town) of the National Highway (N-5) between Hala (District Matiari) and Moro (District Naushahro Feroze) in Sindh Province.

It is ultimately expected to increase traffic capacity, facilitate people’s travel along the route, create considerable employment, and promote related building materials and transportation sectors along the route.

N5 is an important road that extends from the southern part to the north and west border in Pakistan, and carries a large amount of traffic capacity.

📋 Staff Comments

1. The N5 was seriously damaged by a record flood in 2010. At the request of the Pakistani Government, the Chinese Government helped repair parts of N5 and N55 sections in 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. In light of the importance of the N5, the Chinese Government agreed to rehabilitate the remaining 66 kilometers of the N5 road with Chinese grant in accordance with a previous bilateral agreement.

📚 Sources & References

Under this agreement,China will provide grant assistance of RMB 659.8m i.e $100m for rehabilitation of 66KM section of N-5 b/w Hala (District Matiari)& Moro(District Naushahro Feroze)
Sindh.
FEDERAL MINISTER FOR ECONOMIC AFFAIRS
MAKHDUM KHUSRO BAKHTYAR
WITNESSED THE SIGNING CEREMONY OF LETTER OF EXCHANGE (LOE) FOR REHABILITATION OF SPECIFIC SECTIONS OF NATIONAL HIGHWAY N-5 PROJECT AT MINISTRY OF ECONOMIC AFFAIRS
ISLAMABAD ON DECEMBER 31, 2020.
C H I N A C O M M I T S R M B 6 5 9 . 8 M I L L I O N ( U S $ 1 0 0 M I L L I O N ) G R A N T A S S I S T A N C E F O R R E H A B I L I T A T I O N O F N - 5 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.