Funding for critical projects
TAPI gas pipeline - 1,800 km
Funding:
The TurkmenistanβAfghanistanβPakistanβIndia (TAPI) Gas Pipeline Project is a multilateral initiative funded and supported by a consortium of regional governments and international financial institutions.
1. Asian Development Bank (ADB)
Role: Lead transaction advisor and financier
Funding:
Technical Assistance Special Fund: US$ 2.15 million for Phase 1 preparation
Highways & Rail systems
Sistan- Herat railway : 225 km
Funding:
Sections 1β3 Khaf (Iran) to Ghurian (Afghanistan) Iran β US$75m Completed
Section 4 Ghurian to Herat Italy ~80% completed
Kabul New City : 15 bn$
Funding:
Private Sector Investment
Total Investment (First Phase): US$ 6.5 billion
Duration: Over 8β10 years
Scope: Five sections of the first phase, including residential, commercial, and infrastructure development
Lead Developer: Khawar Construction Company and other domestic firms
Initial Capital Injection: US$ 700 million for the βGolden Cityβ subproject in Deh Sabz District
China - Pakistan Corridor : 2 bn $
Funding:
1. Government of China
Primary Financier: Through state-owned enterprises and concessional loans
Investment Channels:
China Development Bank
Export-Import Bank of China
Chinese SOEs (e.g., China Road and Bridge Corporation, State Grid Corporation)
Scope: Roads, railways, energy projects, Gwadar Port, and Special Economic Zones (SEZs)
2. Pakistan Government
Role: Co-financing, land acquisition, and regulatory facilitation
Challenges: Debt servicing and delayed payments for Chinese-built power plants
3. Asian Development Bank (ADB)
Recent Role: Stepped in to finance stalled rail upgrades due to delays in Chinese funding
Example: $2 billion upgrade of KarachiβRohri rail segment, previously part of CPEC
Herat - Kabul Highway: 480 km at a cost of 450m$
Funding:
Trans Afghanistan railway - 700 km at a cost of 5bn$
Funding: governments of Government of Uzbekistan, Pakistan, and Afghanistan
- Multilateral and bilateral banks incl. ADB, World Bank.
Afghan Ring road: 3,200 km, 1 bn$
Funding:
- Asian Development Bank (ADB) $721 million (grants) Construction and rehabilitation of key segments
- U.S. Government Significant contributor to ADBβs Asian Development Fund Indirect funding through ADB mechanisms
- ADB (additional grant, 2017) $150 million Completion of QeysarβLaman segment