ISLAMABAD: The board of Public-Private Partnership Authority (P3A) on Friday approved the bid documents of the landmark Sukkur-Hyderabad Motorway Project proposed to be constructed on a Public-Private Partnership (PPP) basis at an approved construction cost of approximately Rs191 billion (US$1.23bn).
Minister for Planning, Development and Special Initiatives (MoPD&SI) Asad Umar presided over the meeting of the board held here.
The P3A Board previously approved a commercial feasibility study and revised the transaction structure of Sukkur Hyderabad Motorway
Following the Board’s approval of the bid documents, the project will be floated in the market and the bidders would be given adequate time to prepare their proposals.
The project entails the construction of a 306 km green-field 6-lane access controlled toll road on a Build-Operate-Transfer (BOT) basis.
The project is expected to be completed in 30 months following financial close. The concession period of the project is spread over 25 years.
The private sector will be given the tolling and other ancillary development rights of the project to cover its life-cycle costs and earn an adequate rate of return on investment.
Government is supporting the financial viability & bankability of the project through the provision of capital and operational Viability Gap Funding (VGF) by committing to provide a maximum of Rs43bn during the construction period and operational VGF payments spread over the first 7 operational years.
The Board also approved the Public-Private Partnership Working Party (P3WP) Regulations, 2021.
Asad Umar and other members of the P3A appreciated the performance and efforts of the P3A team on the occasion.
The minister highlighted that the development of transportation corridors was critical to the present Government’s development strategy and the Sukkur-Hyderabad Motorway would be a vital section of the North-South connectivity and would also have a far-reaching social and economic impact.
Planning Commission, Secretary Deputy Chairman, the nominee of Secretary Finance Division, Secretary Communications, Member Private Sector Development, NHA Chairman, P3A CEO and two private members of the Board, Huma Ejaz Zaman and Akbar Ayub Khan attended the meeting.