The board of the Public-Private Partnership Authority (P3A) has approved the bid of Rs191 billion ($ 1.23 Billion) for the landmark Sukkur-Hyderabad Motorway project.
According to a statement released on Friday, the project will be constructed on Public-Private Partnership (PPP) basis.
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 P3A board also approved the Public-Private Partnership Working Party (P3WP) Regulations, 2021.
The project is expected to be completed in 30 months following financial close. While the concession period of the project is spread over 25 years.
Minister for Planning, Development, and Special Initiatives Asad Umar presided over the meeting of the board held in Islamabad.
The Deputy Chairman Planning Commission, Secretary Minister for Planning, Development and Special Initiatives, nominee of Secretary Finance Division, Secretary Communications, Member Private Sector Development, Chairman NHA, CEO, P3A and two private members of the Board, Huma Ejaz Zaman and Akbar Ayub Khan were also in attendance at the meeting.
As reported earlier, the 306 Kilometers 6 –Lane fenced motorway would be constructed on Built Operate Transfer (BOT) basis.
As being reported, 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 of Pakistan (GoP) 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 7 operational years.