ISLAMABAD – Pakistan Government approves a new Motorway which is Rs 50billion cheaper than the similar CPEC scheme.
The construction of Sukkur-Hyderabad motorway has been approved by thefederal government on Wednesday at a cost of Rs. 182 billion incollaboration with the private sector.
This could potentially help save Rs. 50 billion when compared to a similarmotorway scheme under CPEC.
The Ministry of Planning and Development stated that the 306-km longproject was recommended by the Central Development Working Party (CDWP) tothe Executive Committee of National Economic Council (Ecnec) for carryingit 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 CPECas per the Ministry of Planning. The Sukkur-Multan stretch was builtbetween China and Pakistan under a government-to-government agreement andwhen compared with each other, the per-kilometer cost for Sukkur-Hyderabadis Rs. 164 million or 21.5% lower.
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Under CPEC rates, the project would have cost Rs. 232 billion. It will nowbe presented for approval before the Public-Private Partnership Authority.After the PPP Authority approves it, tenders for competitive bidding willbe floated by the National Highway Authority (NHA).
Due to the cross-subsidization of the toll fee for the Multan-Sukkurmotorway, this project was presented to CDWP for approval. It has beenevaluated under multiple PPP mode where the contractor will construct theproject on build, operate and transfer mode, known as BOT.
