LAHORE: The National Highway Authority has signed a concession contract for the Sukkur-Hyderabad Motorway M-6 project, making it the largest Public-Private Partnership.
As per the transaction structure of the P3A Board, the Government of Pakistan has only to pay PKR 9.5 billion for the construction while the private party has been arranging PKR 297.5 billion with the help of equity and commercial loans.
Additionally, the private party will also be paying Rs 408 billion to the NHA and estimated corporate taxes totaling PKR 908 billion over the said concession period.
The 306 kilometers long motorway will include 6 lanes and will be managed by a private party for about 25 years.
It is important to mention that the project will be given to the NHA free of charge once it is finished.
It was also shared that the project is said to be the largest development project in the history of Pakistan.