Bid cleared for Rs191b Sukkur-Hyderabad road. The Public-Private Partnership Authority has accepted the bid documents for the prestigious Sukkur-Hyderabad Motorway project.
According to a statement released on Friday, the project, accepted to be built through a Public-Private Partnership (PPP), will cost around Rs191 billion ($ 1.23 billion).
Asad Umar, the Minister of Planning, Development, and Special Initiatives presided over the board meeting. Following the board’s approval of the bid materials, the project will be floated in the market, with bidders given ample time to develop their proposals.
Previously, the board approved a commercial feasibility study and restructured the project’s transaction structure. As a result, the project will construct a 306-kilometer greenfield six-lane access-controlled toll road on a Build-Operate-Transfer (BOT) basis.
Following the financial close, the project is projected to be finished in 30 months. The project has a 25-year concession duration.
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The private sector will be granted tolling and other ancillary development rights to recoup the project’s life-cycle costs and achieve a good rate of return on investment. Bid cleared for Rs191b Sukkur-Hyderabad motorway.
The Government of Pakistan (GOP) is committing to ensuring the project’s financial viability and bankability by providing capital, and operational Viability Gap Funding (VGF) totaling Rs43 billion over the construction phase and operating VGF payments split over the first seven working years.
Additionally, the P3A board accepted the 2021 Regulations for the Public-Private Partnership Working Party (P3WP).
On occasion, Asad Umar and other P3A members expressed their admiration for the P3A team’s performance and efforts. Bid cleared for Rs191b Sukkur-Hyderabad road.
The minister emphasized the importance of transportation corridor development to the government’s development strategy, noting that the Sukkur-Hyderabad Motorway would be an important link in the North-South connectivity chain, with far-reaching social and economic implications.
The Deputy Chairman Planning Commission attended the meeting, the Secretary for Planning, Development, and Special Initiatives, a nominee for the Secretary Finance Division, the Secretary Communications, a member of the Private Sector Development Committee, the Chairman of the National Housing Authority, the CEO of P3A, and two private members of the Board, Huma Ejaz Zaman and Akbar Ayub Khan. Bid cleared for Rs191b Sukkur-Hyderabad road.
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