PESHAWAR, Sept 5: Federal Minister for Communications Arbab Alamgir Khan said on Wednesday that the government had resolved issues with the Korean construction company concerning Lowari Tunnel and it would resume work on the project next week.

Briefing lawmakers at the Khyber Pakhtunkhwa Assembly’s conference room, he said that arrangements with the Korean company had been finalised and it would start work on the tunnel next week. He said that the company had shifted heavy machinery to the site.

The minister also said that the National Highway Authority (NHA) would start work on Hazara Expressway in December. Speaker Kiramatullah Chagharmatti presided over the meeting, which was also attended by NHA chairman Mohammad Ali Gardezi and other senior officials. Mr Alamgir said that the estimated cost of E-35 (Hazara Expressway) was Rs46.8 billion. The expressway would pass through Hassanabadal, Haripur, Abbottabad, Mansehra, Battagram, Shangla and Kohistan districts.

He said that the cost of Lowari Tunnel project was Rs18.4 billion, while Peshawar Northern Bypass would be completed at a total cost of Rs18 billion. The minister said that the Asian Development Bank was providing financial assistance for mega projects in Khyber Pakhtunkhwa.

He said that heavy floods in July 2010 had caused severe damage to road infrastructure in the province. He added that the federal government was giving priority to completion of mega projects in Khyber Pakhtunkhwa.

He told the lawmakers that 55 per cent of the total amount allocated to rehabilitation of damaged road infrastructure in the country was being spent on reconstruction of highways in Khyber Pakhtunkhwa. — Bureau Report