The Executive Committee of the National Economic Council (Ecnec) has officially approved four development plans valued at Rs 265 billion, as well as the building of Hyderabad-Sukkur Motorway (M6) on a build-operate-transfer (BOT) basis.
Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin presided over the Ecnec meeting. During the meeting, the reviewed project of construction of Hyderabad-Sukkur Motorway on the BOT origin was approved at a cost of Rs 191.471 billion. The project is to be implemented by the National Highway Authority and envisions a building of a 6-lane, 306km, fenced motorway between Hyderabad and Sukkur.
The meeting revealed that the project would be involved in the succeeding federal budget and is probable to be accomplished in 30 months. In April, the Central Development Working Party (CDWP) cleared the project then approved by Ecnec in May at a cost of Rs 191.46 billion with the opinion to report certain deficiencies. In the meanwhile, the cost of the project somewhat increased to Rs 191.47 billion.
Moreover, the project is to be executed on a BOT user-charge basis with the facility of pointedly greater financial contribution by the federal government via a capital and functioning feasibility gap fund to increase the financial viability of the project.
On April 12, the Public-Private Partnership Authority (P3A) was suggesting Rs 76 billion government subsidy, or nearly 39 percent share, which was afterward enlarged to nearly 50 percent.
Practically, the BOT is currently on 50:50 shareholding from the public and private sectors.
Besides, the P3A board of directors had accepted the delivery of Rs 92 billion from the budget and from toll charges to build the Hyderabad-Sukkur Motorway project fiscally feasible and eye-catching for private parties.
The Ecnec meeting was joined by Minister for Planning Asad Umar, Minister for Energy Hammad Azhar, Minister for Industries Makhdoom Khusro Bakhtiar, Punjab Minister for Irrigation Mohsin Leghari, Adviser to the PM on Commerce and Investment Abdul Razak Dawood, and federal secretaries and other senior officers from federal and provincial governments.