Bid Documents Of Sukkur-Hyderabad Motorway Approved

The board of Public Private Partnership Authority (P3A) Friday approved the bid documents of the landmark Sukkur-Hyderabad Motorway Project proposed to be constructed on Public Private Partnership (PPP) basis at approved construction cost of approximately Rs 191 billion (US$ 1.23 Billion)

ISLAMABAD, (UrduPoint / Pakistan Point News - 17th Sep, 2021 ) :The board of Public Private Partnership Authority (P3A) Friday approved the bid documents of the landmark Sukkur-Hyderabad Motorway Project proposed to be constructed on Public Private Partnership (PPP) basis at approved construction cost of approximately Rs 191 billion (US$ 1.23 Billion).

The meeting of the board was held here under the Chairmanship of Minister for Planning, Development and Special Initiatives (MoPD&SI) Asad Umar.

The commercial feasibility study and revised transaction structure of Sukkur Hyderabad Motorway (the Project) was previously approved by the Board of P3A.

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 project entails construction of a 306 km green-field 6-lane access controlled toll road on Build-Operate-Transfer (BOT) basis.

The project is expected to be completed in 30 months following financial close. The concession period of the project is spread over 25 years.

Private sector will be given the tolling and other ancillary development rights of the project to cover its life-cycle costs and earn adequate rate of return on investment.

The Government of Pakistan (GoP) is supporting the financial viability & bankability of the Project through provision of capital and operational Viability Gap Funding (VGF) by committing to provide maximum of Rs 43 billion during the construction period and operational VGF payments spread over the first 7 operational years.

Via an innovative structure The Board also approved the Public Private Partnership Working Party (P3WP) Regulations, 2021.

Asad Umar and other members of the P3A appreciated the performance and efforts of the P3A team on the occasion.

The Minister highlighted that the development of transportation corridors was critical to the present Government's development strategy and the Sukkur-Hyderabad Motorway would be a vital section of the North-South connectivity and would also have a far reaching social and economic impact.

The Deputy Chairman Planning Commission, Secretary MoPD&SI, 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 attended the meeting.