ISLAMABAD - The Board of Directors of Public-Private Partnership Authority(PPPA) Friday approved agreement for the construction of Sialkot-Kharian Motorway on a PPP basis.
The 16th Board of Directors’ meeting of Public-Private Partnership Authority was held on Friday here in Islamabad under the chairmanship of Asad Umar, Minister for Planning, Development, and Special Initiatives (MoPD&SI). Deputy Chairman Planning Commission, Secretary MoPD&SI, the nominee of Secretary Finance Division, Secretary Communications, Member Private Sector Development, Chairman NHA, and two private members of the Board also attended the meeting.
The Board of P3A considered approval of the public-private partnership (PPP) agreement for the construction of Sialkot-Kharian Motorway on a PPP basis. Earlier, the Board had approved transaction structure & bidding documentation package of the project and successful bidder’s proposal in its meetings held in March 2021 and June 2021 respectively.
The project envisages the construction of a 69 km green-field 4-lane toll road on a Build-Operate-Transfer (BOT) basis, at a cost of PKR 27.8 billion. The project is expected to be constructed in a period of 24 months following the achievement of the financial close. The concession period of the project is 25 years including the construction period. The government of Pakistan is supporting the financial viability and bankability of the project through the provision of capital and operational Viability Gap Funding (VGF) totaling PKR 10.94 billion. The project is expected to supplement the existing Lahore-Sialkot and future Kharian-Rawalpindi Motorway to take the motorway network up to the city of Rawalpindi.
The Board approved the PPP agreement of the project for its execution between the National Highway Authority and the consortium of Frontier Works Organization and Sultan Mehmood & Co. Besides, aforesaid agenda item, Malik Ahmad Khan, CEO P3A sought approval of the Board to consider ratification of the earlier decisions taken by the Board’s Executive Committee and the decisions taken through circulation. The Board also approved revised budget estimates of the P3A for the ongoing financial year.