Korea to provide $78 million for Malakand Tunnel project

ISLAMABAD: Korean government has pledged $78 million through Economic Development Cooperation Fund (EDCF) for the construction of a 9.7 km Malakand Tunnel project. The 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 Korean consultants in collaboration with National Highway Authority Pakistan, said a press release of Korean embassy on Friday.

The tunnel will provide a short route not only to people of Dir, Malakand and Swat and adjacent localities but would also be an easy access to central Asian states, providing the market access to the country for its products.

The loan will be administrated by Exim Bank of Korea having nominal interest rate of 0.1 percent per annum with maturity period of 40 years including a grace period of 10 years.

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