The Public Private Partnership Authority (P3A) Board has approved the project proposals for the construction of Sukkur-Hyderabad Motorway, Kharian-Rawalpindi Motorway (KRM) and Project Development Facility (PDF) Regulations, 2022 on Public Private Partnership (PPP) basis.
The project proposal for the construction of Sukkur-Hyderabad Motorway was approved in the 20th meeting of the board held on Wednesday which was chaired by Deputy Chairmanship Dr Mohammad Jehanzeb Khan.
The project encompasses construction of 306 km green-field controlled access motorway at a cost of Rs307 billion per successful bidder’s proposal. The successful bidder has proposed to pay Rs408 billion guaranteed revenue share to NHA over the operations period of 22 years. The project also expects to generate Rs918 billion in the form of corporate taxes.
During the meeting it was informed that M6 is the only missing link between the country’s north-south bound motorway networks. With its completion, commuters will be able to use the motorway network while traveling from the port city of Karachi to Peshawar and vice-versa. The project is expected to generate phenomenal economic benefits through promoting tourism, creating job opportunities, reducing travel time & saving costs and contributing towards socio-economic development of urban & rural centers along the corridor.
During the meeting, it was further informed that Sindh will pay for the land acquisition on the behalf of NHA and meetings in this regard took place with provincial authorities of Sindh.
The board also accorded approval to the project proposal for the construction of Kharian-Rawalpindi Motorway (KRM) on PPP basis. KRM has been approved by the Risk Management Unit, Central Development Working Party and Executive Committee of the National Economic Council.
The project will be floated in the market in a short-while. KRM is 117 km 4-lane (convertible to 6-lane) green-field facility that is expected to be completed in a period of 2 years following achievement of financial close by the concessionaire.
Besides above, the board also approved Project Development Facility (PDF) Regulations, 2022 which envisaged providing financial support to the implementing agencies to meet transaction advisory costs related to the PPP project development, structuring and procurement.
Under the said regulation, P3A is already providing PDF support to the several implementing agencies including Pakistan Post to prepare its flagship logistics business project for offering to the private sector.
Since coming into power, there has been many news items related to ‘Sukkur-Hyderabad Motorway’. All these articles referred to a govt committees / commissions giving approval for the construction of the motorway (originally slated to be operational by 2017). However work has yet to start despite so many approvals? Are there more approvals required before work can actually start and finish?
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