Trade finance news

Afghan rail link gets ADB boost

Last Updated May 27, 2010

Asian Development Bank (ADB) has offered a US$165mn grant to construct a rail line linking Afghanistan to Central Asia.

The rail link, which will run between Mazar-e-Sharif in Afghanistan to the country’s northern border with Uzbekistan, is hoped to reduce trade bottlenecks and boost commerce, as well as speeding up the flow of humanitarian assistance.

The track should be completed by the end of this year, and will connect Afghanistan to Uzbekistan’s extensive rail network and regional markets in Europe and Asia.

Furthermore, links between Afghanistan and Pakistan, Tajikistan and Turkmenistan are also planned for the future.

Haruhiko Kuroda, president of ADB, who was present at the 75km track’s inauguration, says: “Afghanistan is at the heart of the Central Asia Regional Economic Cooperation Programme (CAREC), and ADB’s projects in the country’s road and energy sectors dovetail perfectly with CAREC’s vision of helping Central Asia reap the benefit of its strategic location.”

This is the latest in a long line of loans between ADB and Afghanistan, which now equal to around US$2.1bn in loans, grants, technical assistance and co-financing.
 



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