Islamabad: The government has decided to construct the Sukkur-Hyderabad Motorway under a public-private partnership (PPP) arrangement at a cost of PKR 182 billion, a news source reported. The Central Development Working Party (CDWP) has recommended the 306-kilometre project to the Executive Committee of National Economic Council (ECNEC) for further scrutiny.
The government is expecting to save at least PKR 50 billion through PPP mode as the six-lane motorway is expected to cost about PKR 596.4 million per kilometre against the rate of PKR 760 million per kilometre – making the former’s cost about 21.5% lower.
The project will now have to be approved by the Public-Private Partnership Authority, after which the National Highway Authority (NHA) will begin the tendering process. The authorities considered various PPP modes for the project; concluding on the Build-Operate-Transfer (BOT) basis.
After completion, 10% of the revenue will be shared with NHA after the contractor recovers the construction cost and the debt servicing period has end. The contractor will also further earn investment profits for 15 years after the period ends.
