Islamabad: The Economic Coordination Committee (ECC) of the Cabinet has granted approval for the Hyderabad-Sukkur Motorway project, providing a government guarantee amounting to PKR 9,500 million, according to news published on June 5.
An ECC meeting was held in which it was shared that the Hyderabad-Sukkur motorway project gets govt guarantee and it will be executed under a build-operate-transfer framework. The Ministry of Communications presented a comprehensive summary, emphasizing the significance of this development.
As per the details, the Hyderabad-Sukkur Motorway project will be implemented through a Public-Private Partnership (PPP) model, with the active participation of the National Highway Authority (NHA) and TECMC. The PPP agreement mandates that the NHA must provide the concessionaire with a Government of Pakistan (GOP) guarantee, valued at PKR 9,500 million, backed by sovereign assurance and acceptable to the project financiers. This crucial guarantee serves as a commitment to ensuring the project’s successful financial close.
To facilitate the concessionaire’s timely achievement of financial close, the Ministry of Communications has requested the ECC’s approval for the issuance of a government guarantee to be issued by the Ministry of Finance. This step aims to provide reassurance and confidence to the commercial lenders involved in the Hyderabad-Sukkur Motorway project.
Iqra holds BS in International Relations and is passionate about writing engaging content on trending real estate topics. When not working, she is either spending time with family, shopping, or discussing shows & movies.
