ADB in US$ 340 million Afghan road grant
17 January 2011
The Asian Development Bank (ADB) has signed grants totalling US$ 340 million to fund the completion of a 2700 km ring road in Afghanistan.
The ADB said the grants would fund the construction of 233 km of road connecting the towns of Qaisar, Bala Murghab, and Laman in north western Afghanistan.
First conceived in the 1960s, the highway was planned to connect the country's remote mountain terrain and countryside to its major cities. But large stretches have fallen into disrepair following unrest and war in the region, and reconstruction has been a central focus of international efforts since the fall of the Taliban regime in 2001.
The latest ADB grant came on top of US$ 450 million in funds that the ADB has already committed to the Ring Road, brining ADB's total assistance to Afghanistan's roads, railways and airports to more than US$ 1.07 billion.
Meanwhile, the Japan Fund for Poverty Reduction has agreed to provide US$ 1.5 million towards the development of a power sector master plan in Afghanistan.
The additional funds add to the US$ 700 million in loans and grants that the ADB has also committed to rebuild Afghanistan's power network.
The ADB has committed US$ 36 million for the construction of a 420 km portion of the country's north east power system connecting Afghanistan's power grids with Uzbekistan, while a transmission line linking Afghanistan's power grid with neighbouring Tajikistan is currently under construction, costing US$ 35 million.
