According to June 5 news reports, the Economic Coordination Committee (ECC) of the Cabinet has approved the Hyderabad-Sukkur Motorway project and will provide a PKR 9.500 billion government guarantee.
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At a meeting of the ECC, it was revealed that the Hyderabad-Sukkur motorway project will be executed under a build-operate-transfer framework, with government backing. The Ministry of Communications provided a comprehensive summary of this development, emphasizing its significance.
The Hyderabad-Sukkur Motorway project will be implemented through a Public-Private Partnership (PPP) model, with the National Highway Authority (NHA) and TECMC actively participating. The PPP agreement stipulates that the NHA must provide the concessionaire with a Government of Pakistan (GOP) guarantee in the amount of PKR 9,500,000,000 supported by sovereign assurance and acceptable to the project financiers. This vital guarantee functions as a commitment to ensure the successful financial close of the project.
To facilitate the timely accomplishment of financial close by the concessionaire, the Ministry of Communications has requested ECC approval for the Ministry of Finance to issue a government guarantee. This action is intended to provide commercial lenders with assurance and confidence in the Hyderabad-Sukkur Motorway project.