ADB approves $235 million loan to develop Karachi's BRT project

The Asian Development Bank (ADB) has approved a $235 million loan to help develop a bus rapid transit (BRT) system in Karachi.

 

The Karachi Bus Rapid Transit Red Line Project will deliver the 26.6-kilometer (km) Bus Rapid Transit Line Red Line corridor and associated facilities benefiting as many as 1.5 million people, about 10% of Karachi’s population, who live within a kilometer of a Red Line BRT station, according to a press release by Asian Development Bank.

More than 300,000 passengers per day are expected on the Red Line BRT routes. ADB will partially administer two $100 million loans from the Asian Infrastructure Investment Bank and the Agence Française de Développement to jointly finance the project’s civil works and equipment costs.

“There is a need for a more sustainable, reliable, safe, and gender and environment-friendly transportation system in a city as dense and rapidly growing as Karachi. A sustainable transportation system will not only solve the city’s mobility issue but also its growing pollution problem,” said ADB Principal Urban Development Specialist (Transport) for Central and West Asia Mr. David Margonsztern.

The project will also establish sustainable BRT operations in Karachi by improving the capacity of relevant transport authorities; designing the BRT business model and subsidy-free operations; implementing a bus industry transition program, including a fleet scrapping program and compensation mechanism; developing an effective public communications campaign; and delivering the BRT fleet, feeder e-vehicles, intelligent transport system, and a biogas plant.

ADB will also administer a $37.2 million loan and an $11.8 million grant from the Green Climate Fund (GCF). The GCF grant will finance climate change adaptation measures, including innovative drainage features such as bioswales (landscape elements designed to concentrate or remove debris and pollution out of surface runoff water); post-project emissions’ monitoring activities; and feeder e-vehicles.