The Public-Private Partnership Authority (P3A) Board gave nod to the Public-Private Partnership (PPP) Agreement for the construction of Sukkur-Hyderabad Motorway (M-6) and approved the project proposal of development and operation of Karachi Circular Railway (KCR), earlier submitted to the ECNEC for approval.
Last month, the P3A Board gave a nod to the project proposal of the successful bidder for the construction of the M-6 Project on a PPP basis costing Rs 307 billion.
The projects were officially approved in a meeting of the P3A Board under the chairmanship of Deputy Chairman Planning Commission, Dr. Mohammad Jehanzeb Khan.
Secretary Finance Division, Hamed Yaqoob Sheikh, Secretary Planning, Development, and Special Initiatives, Abdul Aziz Uqaili, retired Captain Muhammad Khurram Agha, Chairman National Highways Authority (NHA), Chief Executive Officer CEO, P3A Malik Ahmad Khan, Members Private Sector Development, Akbar Ayub Khan, Asim Saeed, and others also attended the meeting.
A 306km 6-lane green-field facility, Sukkur to Hyderabad M-6 Motorway, was proposed to be built on Build-Operate-Transfer (BOT) basis. The concession period of the project is 25 years comprising 30 months construction period and six months financial close period.
Moreover, M-6 is the only missing link in the north-south motorway network beginning from the port city of Karachi, crossing Sindh and Punjab, and ultimately terminating in Peshawar.
After its completion, the travelers would be able to travel from Karachi to the upcountry through the motorway.
The project is predictable to harness unprecedented economic benefits with respect to vehicle operating cost savings, time savings, saving in accidents, and job creation.
The PPP approval Agreement by the Board will be followed by the authorization of the PPP Agreement between the NHA and the concessionaire.
In addition, the proposal of the KCR Project, which was previously accepted by the P3A Board was directed to the ECNEC for its consideration and approval. The ECNEC approved the project at a cost of Rs 201 billion.
KCR foresees the building of 43-km modern mass urban rail transit Project planned to be built on a PPP basis. The project is expected to restore the public transportation system of the metropolitan city of Karachi.