CDWP Okays Rs 191.47 Bln Hyderabad-Sukkur Motorway Project

CDWP okays Rs 191.47 bln Hyderabad-Sukkur Motorway project

ISLAMABAD, (UrduPoint / Pakistan Point News - 26th Apr, 2021 ) :The Central Development Working Party (CDWP) Monday cleared the Hyderabad-Sukkur motorway project worth of Rs 191.471 billion and recommended to Executive Committee of National Economic Council (ECNEC) for further consideration.

The meeting presided over by Deputy Chairman Planning Commission Dr Jehanzeb Khan discussed the project namely "Construction of Hyderabad Sukkur (306 km), 6 Lane Divided Fenced Motorway on Build Operate Transfer (BOT) basis".

The Hyderabad Sukkur Motorway project envisages construction of 306 km long, 06-lane wide, access-controlled Motorway. The project was discussed in the last CDWP meeting and Chief Executive Officer (CEO) of Public Private Partnership Authority (P3A) was directed to present report on VGF financing.

The said information was shared with the forum and apprised that the PPPA board on April 22 approved the provision of Rs92 billion from the budget and through toll charges to make the Hyderabad-Sukkur motorway project financially viable and attractive for private parties.

The P3A presented the financial model approved by its Board before the CDWP. The CDWP recommended the financial model for consideration of the ECNEC which stated that the project will be implemented on a BOT user-charge basis with the provision of capital and operational Viability Gap Funding (VGF) to improve the financial viability and bankability of the project.

The meeting also approved a project in health sector namely "Strengthening of Existing DHQs, and selected THQs, RHCs, BHUs in District Awaran, Washuk, Khuzdar, Lesbela , Panjgur, Gwadar and Kech (Less Developed areas of the Balochistan)" worth Rs. 5 billion. The project envisages strengthening of seven districts of South Balochistan through provision of civil infrastructure, medical equipment, machinery and ambulance.