ISLAMABAD: A $4.2 billion worth of contract has been signed between Pakistan and China to construct two main road projects of the eastern alignment of the China-Pakistan Economic Corridor (CPEC).
Minister for Planning, Development and Reform Ahsan Iqbal signed the contract on behalf of Pakistan.
Under the contracts, China would provide a concessionary loan of $1.3 billion for the 120-km long Thakot-Havelian section of Karakoram Highyway-II (KKH-II) and $2.9 billion for the 392-kilometre Multan-Sukkur section of the Lahore-Karachi motorway.
The loan agreements were signed after clearance was given by the State Council of People’s Republic of China. After the signing of the agreements, the contractors have been moved to the construction site, said an official of the National Highway Authority (NHA). Both projects fall on the eastern alignment of the CPEC and are critical for connecting Beijing with the port city of Gwadar.
