The Khyber Pakhtunkhwa government is considering a Rs. 5.3 billion bridge financing plan to ensure the timely completion of the Peshawar Northern Bypass project.
The more than 30 kilometer Northern Bypass, designed to complete the Ring Road around Peshawar, has faced prolonged delays for the past 17 years due to limited and irregular funding from the federal Public Sector Development Programme and other issues.
Officials said the project now requires more than Rs. 5 billion to complete its final stages. Despite the funding gap, the project received only Rs. 500 million in the current fiscal year, raising concerns in the provincial capital about further delays and additional cost escalation.
Adviser to the Khyber Pakhtunkhwa chief minister on finance Muzzammil Aslam said the provincial government is reviewing a proposal to provide over Rs. 5 billion from its own resources through a bridge financing arrangement.
He said the matter was also discussed with Chief Minister Mohammad Sohail Afridi, who supported the use of provincial funds to complete the project on time.
Aslam said the provincial government would extend the funds as a loan to the National Highway Authority, which would repay the amount later. He added that a long pending meeting is expected to decide the matter. The project’s cost has increased from Rs. 3 billion to Rs. 27 billion over 17 years, largely due to insufficient federal funding.