National Highway Authority (NHA) has planned to undertake six motorway projects with an estimated cost of $1.83 billion through Public Private Partnership (PPP) basis, official sources revealed.
The total length of these six projects is 572 km and would be awarded a concession term of 20-25 years. Further, the land to be provided by the government for these projects and expected rate of return is 15-20 percent, revealed documents available with ProPakistani.
NHA is promoting PPP in order to bring skills, efficiency and to augment limited public resources. NHA Act and PPP Policy also provide a legal framework for Private Sector Financing, sources added.
The 70 km Sialkot-Kharian Motorway will be a new 6-lane motorway and would be constructed at a cost of $365 million on PPP basis. The 115 km Kharian-Rawalpindi Motorway will be the new 6-lane motorway and would cost around $518 million. The 294 km Pindi Bhattian-Multan Motorway (M-4) will be converted from an existing 4-lane Motorway into a 6-lane Motorway and would cost around $727 million.
The 43 km long Nowshera-Peshawar Expressway (N-5) will also be converted into a 6-lane Expressway with an estimated cost of $100 million. The 50 km long Karachi Northern Bypass (M-10) will be converted from existing 2-lane highway into 4-lane Motorway with an estimated cost of $120 million. Further, the plan includes up-gradation, operation & maintenance of identified stretches of National Highways and Motorways.
According to the documents, NHA has initiated an ambitious program of $13.6 billion, including China Pakistan Economic Corridor (CPEC) during the last four years, and established the largest Private Sector Financing Regime through Public Private Partnership (PPP) of $ 3.4 billion with 882 km of motorway.
About 1785 km of motorways have been added into the network during the last five years and increased from 575 km in 2013 to 2360 km in 2018. Road infrastructure projects worth Rs 1.74 trillion were either completed, on-going or in planning and procurement stages since 2013, which guarantee the socio-economic development of the country, the official added.
NHA completed 35 projects worth Rs. 498 billion with a length of 2813 km since 2013. 25 major highway projects of 1460 km length are ongoing and would be completed with Rs 445 billion.
Further, 21 major projects of 3200 km are in planning and procurement stages and would be completed at a cost of Rs. 800 billion. Further Hakla-D.I.Khan motorway- 290 km western route would be completed in 2019.