Pakistan Government approves a new Motorway Rs 50 billion cheaper than the similar CPEC scheme

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Pakistan Government approves a new Motorway Rs 50 billion cheaper than the similar CPEC scheme

ISLAMABAD - Pakistan Government approves a new Motorway which is Rs 50 billion cheaper than the similar CPEC scheme.

The construction of Sukkur-Hyderabad motorway has been approved by the federal government on Wednesday at a cost of Rs. 182 billion in collaboration with the private sector.

This could potentially help save Rs. 50 billion when compared to a similar motorway scheme under CPEC.

The Ministry of Planning and Development stated that the 306-km long project was recommended by the Central Development Working Party (CDWP) to the Executive Committee of National Economic Council (Ecnec) for carrying it out under the public-private partnership (PPP) mode.

The per-kilometer cost of construction for the six-lane motorway is Rs. 596.4 million as compared to the Rs. 760 million if it was built under CPEC as per the Ministry of Planning. The Sukkur-Multan stretch was built between China and Pakistan under a government-to-government agreement and when compared with each other, the per-kilometer cost for Sukkur-Hyderabad is Rs. 164 million or 21.5% lower.

Under CPEC rates, the project would have cost Rs. 232 billion. It will now be presented for approval before the Public-Private Partnership Authority. After the PPP Authority approves it, tenders for competitive bidding will be floated by the National Highway Authority (NHA).

Due to the cross-subsidization of the toll fee for the Multan-Sukkur motorway, this project was presented to CDWP for approval. It has been evaluated under multiple PPP mode where the contractor will construct the project on build, operate and transfer mode, known as BOT.