Highways rehabilitation: ADB rates $218.8m project ‘less than successful’

ISLAMABAD: The Independent Evaluation Department (IED) of the Asian Development Bank (ADB) rated the ‘Pakistan: Post-Flood National Highways Rehabilitation Project’ with estimated cost of USD218.8 million, less than successful.

The Post-Flood National Highways Rehabilitation Project—launched after the devastating 2010 floods—was found relevant and efficient, but less than effective and less than likely sustainable, according to a newly released validation report. The downgrade contrasts with the project completion report, which had labelled the initiative successful.

Backed by a USD196.9 million ADB loan, the project helped rehabilitate 201 kilometres of national highways and 21 bridges across Khyber Pakhtunkhwa, Punjab, and Sindh, restoring vital transport links in flood-prone regions.

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Disaster Management Units were set up within the National Highway Authority (NHA), and staff were trained to manage post-disaster traffic disruptions.

The PCR rated the project efficient. The economic internal rate of return (EIRR) at completion was 17.1 percent, compared to 20 percent at appraisal.

The IED found insufficient evidence to confirm that key outcome targets—such as safer and more efficient traffic movement—were achieved as planned. Crucially, 12 bridges originally included in the project were cancelled and completed later using government funds, weakening claims that all outputs were delivered under the ADB loan.

Sustainability also raised red flags. While Pakistan’s road maintenance is funded largely through toll revenues, the evaluators said the report lacked clear proof that operations and maintenance budgets are adequate to protect the rebuilt assets over the long term.

The IED report noted the project remains important and impactful, helping communities reconnect and recover after catastrophic floods—but warned that weak monitoring, incomplete outputs, and uncertain maintenance financing ultimately dragged down its overall rating.

The validation notes that a project performance evaluation report should be prepared in 2026 as more than 2 years have passed since physical completion.

Copyright Business Recorder, 2025