ADB, World Bank Consider Funding $6.8 Billion ML-1 Project

The Asian Development Bank and World Bank have shown interest in funding Pakistan's 1,800 kilometer Karachi Peshawar Main Line 1 railway project. The project's revised estimated cost is up to $6.8 billion. The Asian Development Bank is being considered as the lead financier, while the Asian Infrastructure Investment Bank and World Bank have committed to co-financing. Other potential financiers include the European Investment Bank, Islamic Development Bank, and Japan International Cooperation Agency.

The project's scope extends beyond just infrastructure rehabilitation and upgrading. It also encompasses institutional and operational reforms to enhance the efficiency, sustainability, and service delivery of Pakistan Railways. The project design was revised to address identified gaps and incorporate necessary improvements. As a result, the estimated cost of ML-1 was lowered to an estimated range of $6.68 billion to $6.80 billion, down from the initial estimate of around $9 billion.

The railway infrastructure is planned to support train speeds of up to 160 kilometers per hour, while the operational speed is expected to be up to 120 kilometers per hour initially. The construction is projected to take about three years to complete. However, the committee expressed concerns about the proposed operational speed and emphasized the need for the use of modern railway technologies and adherence to international standards.

They also called for infrastructure and operational parameters to be put in place that would support speeds of up to 160 kilometers per hour, should those speeds be technically and economically feasible.