The transport sector is important to Pakistan’s economy. In 2005, it comprised about 10% of the country’s gross domestic product. Road transport was the dominant mode, accounting for 91% of passenger and 96% of freight traffic. The national highway network, consisting of 8,320 kilometers (km) of highways and 710 km of motorways, carried 75%–80% of all national traffic. 50% the network however was in poor to very poor condition. This prompted the National Highway Authority (NHA) to develop and implement the 2005−2010 National Highway Development Plan (NHDP).
The Asian Development Bank (ADB) supported the NHDP by approving in December 2005 a multitranche financing facility (MFF) of up to $770 million for the National Highway Development Sector Investment Program (NHDSIP). The MFF was to be disbursed over up to 10 years as individual or separate loans triggered by the approval of periodic financing requests. A loan of $180 million, approved in February 2006, financed project 1 of the investment program. Another $3 million loan for NHA institutional strengthening, implemented parallel to project 1, was also approved in December 2005.
This report covers project 2, approved in August 2009 for a loan of $230 million, and the entire investment program. Focusing on strategic sections, project 2 was designed to rehabilitate and improve an additional 460 kilometer (km) of Pakistan’s national highway network.
At completion, the NHDSIP delivered a total of 384.6 km of road improvements: 218.6 km under project 2 and 166 km under project 1. While the total output comprised less than half of the 836 km planned to be improved by the 2 projects, the roads delivered by the investment program were completed to a high standard, with additional design features that adequately respond to hydrology, community needs, and changes in traffic forecasts. The works were completed on time and within budget despite a challenging security environment for the largest projects in Balochistan.
Output targets on NHA institutional strengthening were also considerably achieved. Key accomplishments included the preparation of a road maintenance plan and an NHA investment plan; the identification of public−private partnership projects, estimated at $1.97 million, 6 of which were being implemented, 4 were under procurement, and 7 at preparation stage; operationalization of a grievance website; and the piloting of intelligent highway systems.
Broad attainment of the road improvement targets led to the achievement of the program’s planned main outcome of improving the efficiency of strategic roads along Pakistan’s national highway network. Traffic on the rehabilitated roads considerably grew between 2007 and 2011. By 2014, travel times declined, and freight speeds increased significantly some of the project 2 roads. Growth in economic activity in certain project areas was palpable. However, the program’s performance particularly at the impact level cannot be assessed due to weaknesses in the design and monitoring framework.
ADB’s Central and West Asia Department rated the program successful. NHA was the executing agency. Project implementation units were established within the NHA to oversee day-to-day implementation of projects 1 and 2.
