ISLAMABAD   -  The Central Development Working Party (CDWP) on Monday recommended Hyderabad–Sukkur 306km motorway project with the cost of Rs191.47 billion (15.56 percent higher than original PC-I) to ECNEC for further consideration. 

The CDWP meeting, presided over by Deputy Chairman Planning Commission Mohammad Jehanzeb Khan, cleared a development project with estimated cost of Rs5 billion and recommended one project worth Rs191.47 billion to the Executive Committee of the National Economic Council (ECNEC) for further consideration. Senior officials from Planning Commission and federal ministries/divisions also participated in the meeting while representatives from provincial governments participated through video conference. 

Projects related to health and transport & communications were presented in the meeting. A project related to transport & communication presented in the meeting namely “Construction of Hyderabad–Sukkur (306km) 6 Lane Divided Fenced Motorway on BOT Basis” worth Rs. 191471.074 million. 

The Hyderabad–Sukkur Motorway project envisages construction of 306km long, 06-lane wide, access-controlled motorway. In the original PC-I, available with The Nation, approved by the ECNEC in July 2020 at the cost of Rs165.679 billion with the GOP share of Rs1122.782 million or 0.7 percent while the concessionaire share was Rs164.557 billion or 99.3 percent. However, in the revised PC-I the cost of the project was increased by 15.56 percent to Rs191.471 billion. 

The stakeholders had demanded that the project may be structured by providing Viability Gap Fund (VGF). Therefore it was decided to re-strategy the project on the basis of provision of VGF to Rs75.89 billion by GOP. 

The share of the government of Pakistan was increased from 0.7 percent to 39.6 percent or Rs75.893 billion, while the remaining 60.4 percent or Rs115.578 billion share will be paid to the concessionaire. The project was discussed in the last CDWP meeting held on 12th April and CEO P3A was directed to present report on VGF financing. 

The said information was shared with the forum and apprised that the Public Private Partnership Authority (PPPA) board on 22nd April approved provision of Rs92 billion from the budget and through toll charges to make the Hyderabad-Sukkur motorway project financially viable and attractive for private parties. 

The P3A presented the financial model approved by its board before the CDWP. The CDWP recommended the financial model for consideration of the ECNEC which stated that the project will be implemented on a BOT, user-charge basis with the provision of capital and operational Viability Gap Funding (VGF) to improve the financial viability and bankability of the project. 

A project related to health namely “Strengthening of Existing DHQs, and selected THQs, RHCs, BHUs in District Awaran, Washuk, Khuzdar, Lesbela, Panjgur, Gwadar and Kech (Less Developed areas of the Balochistan)” worth Rs4996.60 million approved in the meeting. 

The project envisages strengthening of seven districts of South Balochistan through provision of civil infrastructure, medical equipment, machinery and ambulance.