Sustainable transport projects: Country set to secure USD30m concessional ADB loan

ISLAMABAD: Pakistan is moving forward to secure a proposed USD 30 million concessional loan facility from the Asian Development Bank (ADB) aimed at preparing sustainable transport sector projects.

According to project details, the initiative titled “Preparing Sustainable Transport Sector Projects” will support the conceptualisation and preparation of transport infrastructure schemes, including roads, bridges, urban public transport, and mass transit systems.

The project remains in the proposed stage and is designed as a Sector Efficiency Financing Facility (SEFF) to help the Sindh government develop bankable and environmentally sustainable transport projects aligned with Pakistan’s development priorities and ADB’s Country Partnership Strategy.

ADB said the facility would finance a wide range of preparatory activities, including feasibility studies, safeguards assessments, economic and financial due diligence, detailed engineering designs, procurement support, pilot demonstrations, and institutional capacity building during project implementation.

The financing will come from ADB’s concessional ordinary capital resources lending window. The project carries an environmental safeguard category “B,” while involuntary resettlement and indigenous people’s categories have been classified as “C,” indicating limited anticipated impacts in those areas.

The Planning and Development Department, Government of Sindh, has been named as the executing agency, while ADB’s Transport Sector Office under the Sectors Department will oversee the initiative.

ADB records show concept clearance for the project was completed on August 25, 2025, while fact-finding activities were conducted from August 4 to August 13, 2025.

Officials say the facility is expected to strengthen Sindh’s transport planning pipeline and accelerate the preparation of future infrastructure investments focused on sustainability, connectivity, and improved mobility across the province.

Copyright Business Recorder, 2026