Pakistan and South Korea sign tunnel agreements
12 December 2012Pakistan and South Korea have signed two agreements for the Malakand Tunnel Construction Project and for development of water resources infrastructure including dams, announced the Government of Pakistan and a statement from Seoul.
Under the Malakand Tunnel Loan Agreement, an amount of USD 78M will be provided for the project. The Korea Eximbank is an official export credit agency providing comprehensive export credit and guarantee programs to support Korean enterprises in conducting overseas business.
The South Korean government pledged the USD 78M funding through the Economic Development Co-operation Fund (EDCF) for the construction of Malakand Tunnel project in Khyber Pakhtunkhwa province. The 9.7km project also includes approach roads on both sides of the tunnel and three bridges. The initial feasibility study of the tunnel has already been completed by South Korean consultants in collaboration with National Highway Authority Pakistan, which is also the project executing agency.
Malakand tunnel will provide a short route not for people in Dir, Malakand and Swat and adjacent localities and would also be an easy access to central Asian states, providing the market access to the country for its products, the Government of Pakistan stated. Malakand Pass lies between Dargai-Batkhela and is situated at an altitude of 470m and 663m, respectively.
