Islamabad:
The federal government on Wednesday approved the construction of the Succur-Hyderabad (M-6) highway at a price of RS395 billion-up with 138%and created a ministerial panel to find credible sources of financing, bringing the project back into the public sector financing mode.
The Central Development Party (CDWP) approved in a meeting chairman of the planning minister AHSAN IQBAL 10 different development projects, including the 306-kilometer Hyderabad-Sukkur motorway. CDWP has referred the motorway project to the Executive Committee for the National Economic Council (ECNEC) for final approval.
This is the fourth time that the motorway project has gone to the Federal Government’s approval phase after the first three attempts to implement it under the public-private partnership mode failed.
The project had been approved for the first time in 2020 at a price of RS165 billion. Then the costs were revised up to RS191 billion in 2021, and the third time it was approved for an RS308 billion cost in 2022.
The fourth approval has been given at a total price of RS395 billion, up with RS229 billion or 138% compared to five years ago’s first approval. The project has also been brought back in the fold of the public sector development program, although CDWP has kept the private partnership setting open.
Hyderabad to the SUKKUR motorway is the only remaining important part of North to the South connection, and that is a highest priority for Pakistan Peoples Party. PPP has attached its support to the budget with acceptance of all its requirements, including the inclusion of the highway in the federal PSDP.
The government has allocated RS15 billion to build the project in the next financial year, which is lower than the estimated RS78 billion required for the first building.
Iqbal instructed the National Highway Authority and the Division of Economic Affairs to ensure that confirmation of financing for the remaining sections of the project will be submitted at the end of August.
Iqbal announced the formation of a high -level committee to be chairmaned by the federal finance minister to end the credible sources of financing.
The committee will include the federal ministers for communication, financial affairs and planning together with senior officials from NHA and the Ministry of Communications.
The planning minister suggested exploring innovative financing methods to speed up the project’s implementation and ensure its timely implementation.
The government has beaten the project on various forums, including for funding under the China Pakistani economic corridor, Azerbaijan and Islamic Development Bank. So far, the Islamic Development Bank has stated their interest in financing potentially the last three out of five sections with a loan of $ 475 million. IDB is expected to approve the loan in September this year. Chairman CDWP Iqbal instructed the authorities to find the financing options by August this year, so the project is completed in a timely manner.
The Islamic Development Bank has stated that they will turn to other financiers such as the Arab Development Group and the Asian Infrastructure Investment Bank (AIIB) to finance the first two sections of M-6.
National Highway Authority has suggested that the first two sections should be completed under the public private partnership. However, the Planning Commission has objected to the approval of the PPP Authority Board was not available, which was mandatory.
Due to the large size of the project and financial restrictions, NHA has planned to implement the M-6 project in sections and in hybrid financing mode. The remaining sections depending on their commercial viability will be offered for implementing the private investment mode during the PPP event.
Iqbal stated that the implementation of this project will provide significant social benefits and have a major impact on promoting Pakistan’s economic development. He emphasized that this project as part of the national program to expand the country’s highway infrastructure will help stimulate growth in the areas along its adaptation and improve the regional connection.
Eastbay Expressway
CDWP also recommended construction of the Eastbay Expressway Phase-II project at a price of the RS30.2 billion for ECNEC for further consideration. The project is proposed to be funded through foreign funding – Chinese grants in assistance to the extent of 95% costs.
The project imagines the construction of a 13.8 km long double roadway highway to connect the new Gwadar International Airport (NGIA) with the end point of the existing Eastbay Expressway. This high -speed high -speed access is designed to facilitate heavy loading traffic between NGIA and Gwadar Port. The project also includes essential infrastructure, such as a rainwater drainage system, tolling plaza, safety fences, herbal towers and street lighting.
Suggested under CPEC, the project was discussed and prioritized under several joint Co -operative Committees for CPEC with the Chinese side, which emphasized its importance in improving connection and operating efficiency in the port.
CDWP also recommended construction of Zhob for Makhter Road at a price of RS15 billion. The construction of a road to the Iran border was approved for costs of RS11 billion. The purpose of this road building project is to develop a safe, efficient and durable transport route connecting key placements, which improves overall accessibility and mobility in the region.
