Sukkur-Hyderabad Motorway bid documents approved
The 17th board of directors’ meeting of PPPA was held under the chairmanship of Federal Minister for Planning, Development and Special Initiatives Asad Umar.
The PPPA board approved the Sukkur-Hyderabad Motorway project proposed to be constructed on the public-private partnership basis at the approved construction cost of approximately Rs191 billion.
The commercial feasibility study and revised transaction structure of the project was previously approved by the PPPA board.
The project entails construction of a 306km greenfield six-lane access controlled toll road on Build-Operate-Transfer (BOT) basis. The project is expected to be completed in 30 months; following the 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.
The government is supporting the financial viability and bankability of the project through the provision of capital and operational viability gap funding (VGF) by committing to provide a maximum of Rs43 billion during the construction period and operational VGF payments spread over the first seven operational years.
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 board also approved the Public Private Partnership Working Party (P3WP) Regulations, 2021.
Asad Umar and the other members of the PPPA appreciated the performance and efforts of the team.
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.
The deputy chairman of the Planning Commission, secretary MoPD&SI, nominee of the secretary of the Finance Division, Communications secretary, member of the Private Sector Development, NHA chairman, P3A CEO and two private members of the board, Huma Ejaz Zaman and Akbar Ayub Khan, also attended the meeting.
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