ADB Terms $218.8m Highways Rehabilitation Project ‘Less Than Successful’

ADB Rates Pakistan’s $218.8m Post-Flood Highways Rehabilitation Project ‘Less Than Successful’

Islamabad:
The Independent Evaluation Department (IED) of the Asian Development Bank (ADB) has rated the Pakistan: Post-Flood National Highways Rehabilitation Project, with an estimated cost of $218.8 million, as “less than successful”, according to a newly released validation report.

Launched in the aftermath of the devastating 2010 floods, the project aimed to restore critical transport infrastructure across Khyber Pakhtunkhwa, Punjab, and Sindh. While the evaluation found the project relevant and efficient, it concluded that it was less than effective and less than likely sustainable, marking a downgrade from the Project Completion Report (PCR), which had earlier rated it successful.

Backed by a $196.9 million ADB loan, the project facilitated the rehabilitation of 201 kilometres of national highways and 21 bridges, helping restore vital connectivity in flood-affected regions. Additionally, Disaster Management Units were established within the National Highway Authority (NHA), and staff were trained to handle post-disaster traffic disruptions.

According to the PCR, the project performed well in efficiency terms, achieving an Economic Internal Rate of Return (EIRR) of 17.1%, compared to 20% at appraisal. However, the IED highlighted key shortcomings, particularly the lack of sufficient evidence to confirm that core outcomes—such as safer and more efficient traffic movement—were fully achieved.

A major concern raised in the report was the cancellation of 12 bridges originally included in the project. These bridges were later completed using government funds, weakening claims that all planned outputs were delivered under the ADB-financed initiative.

Sustainability also emerged as a critical issue. Although Pakistan’s road maintenance relies heavily on toll revenues, the evaluators noted the absence of clear evidence confirming that operations and maintenance budgets are adequate to preserve the rehabilitated assets over the long term.

Despite these concerns, the IED acknowledged the project’s importance in supporting post-flood recovery and reconnecting affected communities. However, it cautioned that weak monitoring mechanisms, incomplete outputs, and uncertainty around maintenance financing ultimately undermined the project’s overall performance.

The validation report further noted that a Project Performance Evaluation Report (PPER) should be prepared in 2026, as more than two years have passed since the project’s physical completion, to reassess long-term outcomes and sustainability.