<article><a style="color: #000080;" href="http://www.ADB.org" target="_blank">Asian Development Bank (ADB)</a> and <a style="color: #000080;" href="http://www.aiib.org" target="_blank">Asian Infrastructure Investment Bank (AIIB)</a> have given shape to their first co-financing deal &#8211; a $100 million loan for a highway project in Pakistan.</article>

<a style="color: #000080;" href="http://www.ADB.org" target="_blank">Asian Development Bank (ADB)</a> and <a style="color: #000080;" href="http://www.aiib.org" target="_blank">Asian Infrastructure Investment Bank (AIIB)</a> have given shape to their first co-financing deal &#8211; a $100 million loan for a highway project in Pakistan.
Both banks have been preparing projects for co-financing since last year.
A multilateral development bank, AIIB will provide the $100-million loan, which is subject to its board approval later this month. The United Kingdom’s Department for International Development (DFID) has also committed a $34 million grant for the project. ADB, as the lead financier, will administer both the AIIB loan and the DFID grant.
ADB said, in a statement, the project was an integral part of the Central Asia Regional Economic Cooperation (CAREC) corridors.
Also Read: <a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/35984-35984/" target="_blank">ADB, JICA create new $1.5b fund to spur private investment in infrastructure</a> 
ADB President Takehiko Nakao called the development &#8220;a historic milestone&#8221; for ADB and AIIB.
&#8220;We jointly aim to meet the pressing infrastructure needs in Asia and the Pacific region,&#8221; Nakao said. &#8220;The project has strategic value to Pakistan as it supports north-south connectivity, new trade, and business opportunities, which will boost jobs and cut poverty.&#8221;
The project will fund the remaining 64-km four-lane section of the M-4 National Motorway connecting Shorkot and Khanewal in Punjab province.
Also Read: <a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/adb-okays-250m-aid-china-123m-loan-ph-water-projects-35024/" target="_blank">ADB okays $250m aid for China, $123m loan for PH water projects</a> 
The project constitutes a key part of a 1,800 km CAREC transport corridor linking the port city of Karachi in the south, to major primary production and population centers including Lahore, Faisalabad, Islamabad and Peshawar, and on to Torkham on the northern border with Afghanistan.
Nakao together witth AIIB president Liqun Jin signed a memorandum of understanding for collaboration during ADB’s Annual Meeting in Frankfurt in early May.
Also Read: <a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/adb-sri-lanka-ports-authority-ink-agreement-for-500m-port-project-via-ppp-31881/" target="_blank">ADB, Sri Lanka Ports Authority ink agreement for $500m port project via PPP</a>

ADB, AIIB approve $100m co-financing deal for Pakistan road project

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

ADB, AIIB approve $100m co-financing deal for Pakistan road project

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief