KPK to Spend $10.8 Billion on Two New Cities

KPK government has signed four agreements worth $10.86 billion for various city building and developmental projects, at the Chief Minister House yesterday.

The agreement was signed between the provincial government and Frontier Works Organisation (FWO), with the FWO in charge of various construction projects in the newly proposed cities. The two cities will be named as CPEC City and Peshawar Model Town. Authorities stated that together these cities will be established to change the landscape of KPK province for the better.

Three hydro-electric power plants will be set up in Chitral, as well as an oil refinery in Karak and a cement factory in Haripur.

Chief Minister Pervez Khattak, while talking to the media said that the 4 MoUs were collectively worth almost $11 billion and cover various housing, oil, gas, hydel and cement projects.

City Development and Other Project Details

Mentioning the two city projects, the minister said,

The CPEC City project will cost around $4.4 billion, and 62,000 residential plots will be constructed in the mega housing project spread over 80,000 kanal.

The Model Town in Peshawar costing around $4.6 billion will be spread over an area of 108,000 kanal with 81,000 plots.

The CPEC City will be built near the motorway on Colonel Sher Khan (Interchange) and Peshawar Model Town between Peshawar and Nowshera.

The hydroelectric projects will generate 600 megawatts of power and cost about $1.10 billion to set up. The oil refinery and cement factory will cost $600 million and $160 million respectively.

Not Based on Loans

When asked about the financing terms for these projects, the minister claimed that none of them are loan-based.

“They will be built on Build-Own-Transfer basis. Not a single rupee of the K-P government will be spent on the projects.” – Pervez Khattak, CM KPK

KP government is also trying to attract Chinese companies for the same. The government expects to profit without spending anything on the projects as per CM KPK. Explaining about the profit sharing agreement between the government and FWO, Mr. Khattak said that the government will make Rs. 50 billion in profit, all without spending a rupee on anything.

A techie, Overwatch and Street Fighter enthusiast, and Editor at ProPakistani.


  • Good initiative.

    Creating extra layers of cost like FWO…why not, get into better BOT contract with main players like DHA, Bahria and other giant builders.

    • FWO is construction wing of PakArmy. Profit will help our own armed forces rather than giving profit to a bunch of elites and course it would be corruption free .

      • Question: Those “bunch of elite” don’t deserve money when they invest in Business in Pakistan? What logic is that? Should they invest in Dubai?

        FWO is more experienced in road infrastructure project and not town planning/building. When same FWO is awarded roads’ projects in Balochistan no one else but federal govt is criticized for “corruption”…nobody asked “is a wing of army giving bribe to federal govt? “

    • yes something (fingers crossed) at the end of PTI era, which will never ever happen, same 90’s or PPP politics.

  • loan or investment? and why r they attracting china?

    why they r paying FWO like punjab pays.? creating extra layer of cost by public money? whats the difference b/w them and punjab?

    • Adeel khan, can you please explain that KPK Govt is paying FWO?? These project are being done on Build own and operate (BOO Basis) its the same as self finance programs in Government universities (Medical) KPK Govt is not paying FWO but will earn money through FWO from these projects. and the difference between Punjab and KPK is that Punjab is in the lower north & south of the country and KPK in upper North of the Country :p

    • Just wondering when months are left for present Gov to finish, why they announce such mega projects which they could have done easily couple of years back ……. food for thought

      • same 90’s politics which every Govt. did in past, instead this should be announced in start of their Govt. so we can see the result. Wohi Khiali pulao phir say.

        But na je na yeh dhokay bazian ab nahin chalaein gi.

        • CPEC was started a couple of months after federal govt took over…project karnay ki niyat thi shayad.

          This project will not see the day light, and seems more like coordination only by KPK govt. which writer is putting as achievement.

  • Good for KPK and ProPTI, pehly asal mein palao khatay thay ab Khiali palaoo bhi khaeingay.

  • Why not improve management of the existing cities??? Why does every CM thinks that the provincial capital is the only city that needs to be taken care of?

    • No matter provincial capitals have maximum population of any province but KPK govt has delivered.
      They have painted all curbstones along the roads in Peshawar city, a new bridge in the middle of Peshawar where all roads end up on “Karghanoo Chowk (Chicken market chowk)” so no traffic jam around the bridge as all traffic jam is now near karghano chowk. New furniture in police stations, in some schools. Civil secretariat has not changed, baboos are so rigid for the bright change we have seen in 4 years.

      Thank you Imran Khan.

      • On the contrary, Peshawar has a population of 1.7 million and whole KPK has 27 million. PTI Gov. has failed to deliver the same changes in other areas of KPK that have been seen in Peshawar.

  • Few points:
    1- FWO has less experience of town planning/building. They are more experienced in road infrastructure I believe.

    2- Same FWO when is constructing roads under CPEC and other government projects in Balochistan is not named as contractor when opponents criticize government for any corruption (with no proof though).

    3- Govt. role here seems mere coordination and this could have been done when they got the government.

  • This is tabdeeli. Who said we should invest in Education and health?
    So they improved health and education 90% in KPK?


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