Khyber Pass Economic Corridor Project - Notice of Extension - Dispute Resolution

Jul 19, 2026

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Notice of Extension - Dispute Resolution dated November 13, 2025 for the Pakistan: Khyber Pass Economic Corridor Project (P159577), Case No. 24/04/DRS. It recalls the World Bank Executive Directors’ approval of an Inspection Panel recommendation in October 2024, the sender’s offer to the parties to pursue dispute resolution under relevant resolutions, and the parties’ voluntary agreement. Following an interim agreement signed November 13, 2025, mediation continues, and the dispute resolution process is extended up to six months with a final deadline of May 14, 2026.

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NOTICE OF EXTENSION-DISPUTE RESOLUTION

Project context and Inspection Panel recommendation

Offer and voluntary pursuit of dispute resolution

Interim agreement and extension of mediation deadline

Public Disclosure Authorized Public Disclosure Authorized November 13,2025 Case No.24/04/DRS # NOTICE OF EXTENSION-DISPUTE RESOLUTION Pakistan:Khyber Pass Economic Corridor Project(P159577) 1. On October 11,2024,the World Bank Executive Directors approved an Inspection Panelrecommendation to investigate the Pakistan:Khyber Pass Economic Corridor Project(P159577)(the"Project"). 2. On October 15,2024,I wrote to the Parties in this case,offering the opportunity for disputeresolution,pursuant to paragraph 11(a)of Resolution No.IBRD 2020-0005/Resolution No.IDA 2020-0004(the“AM Resolution”)and paragraph 30 of Resolution No.IBRD 2020-0004/Resolution No.IDA2020-0003(the“Panel Resolution”). 3. On November 14,2024,I informed the Executive Directors,the Inspection Panel and BankManagement that the Parties voluntarily agreed to pursue dispute resolution,pursuant to Paragraph 11(b)of the AM Resolution and Paragraph 31 of the Panel Resolution. 4. On November 13,2025,the Parties signed an interim agreement,partially addressing the eligibleissues in the case,and requested to continue with the mediation.Pursuant to Paragraph 12(g)of the AMResolution,I hereby inform the Executive Directors,the Inspection Panel and Bank Management that atthe request of both Parties,and recognizing the Parties'commitment and progress so far,I have extendedthe dispute resolution process,for an additional period of up to six months,with a final deadline ofMay 14,2026.Should the Parties sign a further agreement addressing further eligible issues,they agreedthat the terms of the interim agreement signed on November 13,2025,will be incorporated within the finalDispute Resolution Agreement.Should this not happen,the Parties agreed that the interim agreement ofNovember 13,2025,will be deemed the Dispute Resolution Agreement,partially addressing the eligibleissues in the case. 5. I will issue a notification to the Executive Directors at the conclusion of the dispute resolutionprocess,clarifying the outcome of the case. Yours sincerely, 0 The Executive Directors and Alternates International Bank for Reconstruction and DevelopmentInternational Development Association Mr.Ajay BangaPresident, International Bank for Reconstruction and DevelopmentInternational Development Association Mr.Ibrahim James PamChair,The World Bank Inspection Panel Ms.Gallina A.VinceletteVice President,OPCS

FAQs

What is being extended in this notice for Case No. 24/04/DRS?

The notice extends the dispute resolution process for an additional period of up to six months, continuing mediation under the dispute resolution framework.

What deadline applies after the extension?

The final deadline stated is May 14, 2026.

How will the interim agreement signed on November 13, 2025 be handled?

If the parties sign a further agreement addressing additional eligible issues, the interim terms will be incorporated into the final Dispute Resolution Agreement; otherwise, the interim agreement will be deemed the Dispute Resolution Agreement, partially addressing eligible issues.

Jul 19, 2026

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