KABUL, Sept. 17 (Xinhua) -- Islamic Development Bank (IDB) and the Afghan Finance Ministry signed an agreement under which the bank would provide a soft loan for construction of Kabul Ring Road (KRR) and other related infrastructure, the official Bakhtar News Agency (BNA) reported Sunday.
The 95-km ring road has been said one of the most important national road networks which could join the Afghan capital with other important thoroughfares, expected to improve safety and diminish traffic congestion, the agency said quoting Finance Minister Eklil Hakimi.
According to the report, the IDB provided 74 million U.S. dollars for the project.
"The project would take up to 110 million U.S. dollars totally, whereas the Afghan government will provide 34.28 million U.S. dollars," said Hakimi.
Construction of Kabul Ring Road plays significant role in both Afghanistan and the region's economic aspect and the IDB will continue its support to Afghanistan, Sayed Aqa, the IDB vice-president, was quoted in the report as saying.
Majority of Afghanistan's highways have been demolished either by militants' roadside mining or use of low-quality materials by construction companies.
