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Korea commits $78 million for Malakand tunnel

07 December, 2012

SEOUL: Pakistan and South Korea on Wednesday inked two agreements that will pave the way for the construction of Malakand tunnel and development of water resources including building of dams.

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SEOUL: Pakistan and South Korea on Wednesday inked two agreements that will pave the way for the construction of Malakand tunnel and development of water resources including building of dams.

First agreement on the Malakand tunnel construction project was signed during a meeting between President Asif Ali Zardari and Export Import Bank of Korea Chairman Kim Yong-Hwan here. Under the agreement, the Korean government will provide $78 million for the project through the Economic Development Cooperation Fund.

The Malakand tunnel will not only provide a short route to the people of Dir, Malakand, Swat and adjacent localities, but will also provide easy access to markets of central Asian states.

The project, spread over 9.7 km, also includes approach roads on both sides of the tunnel and three bridges. Korean consultants, in collaboration with the National Highway Authority, which is also the executing agency, have completed initial feasibility study of the tunnel.

Speaking during the meeting, President Zardari said Pakistan and Korea should explore the true potential of trade and investment and take bilateral trade to new heights. He asked the business community to boost the trade volume from existing $1.5 billion to $2 billion in the next three years.

He said major Korean companies were doing business in Pakistan and had invested in key projects including chemical plants, energy, infrastructure and port facilities. He asked the companies to cash in on numerous opportunities and incentives for investment as Pakistan had opened all sectors of the economy.

Later, the president met with Korea Water Resources Corporation CEO Kim Keun-Ho. After the meeting, a memorandum of understanding was signed between the Korean company and Water and Power Development Authority (Wapda).

Under the MoU, both sides will work for sustainable development of the water and power sector and cooperate in flood control and building water resources including dams, hydropower plants and canals.

They will also exchange technical expertise, train engineers and technicians and conduct studies on operation and management of dams, hydropower plants, hydrology and sedimentation.

End.


 
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