NHA mulling undertaking six motorway projects through PPP

The National Highways Authority (NHA) has planned to undertake six motorways projects with estimated cost of $1.83 billion through public-private partnership (PPP), official sources revealed to Business Recorder here on Saturday. The total length of these six projects is 572 kilometres and they would be awarded with concession term of 20-25 years. Furthermore, land will be provided by the government for these projects, and expected rate of return is 15-20 percent, revealed documents available with Business Recorder.
The NHA is promoting the PPP in order to bring skills and efficiency and to augment limited public resources. Further, the NHA Act and PPP policy provide a legal framework for Private Sector Financing, the sources added.
The 70 kilometres Sialkot-Kharian motorway will be new 6-lane motorway and would be constructed with $365 million on PPP basis. The 115 kilometres long Kharian-Rawalpindi Motorway will be new 6-lane Motorway and would cost around $518 million. The 294 kilometres Pindi Bhattian-Multan Motorway (M-4) will be converted from existing 4-lane motorway to a 6-lane motorway and it would cost around $727 million. The 43 kilometres long 4-lane Nowshera-Peshawar Expressway (N-5) will be converted into 6-lane expressway with an estimated cost of $100 million. The 50 kilometres long Karachi Northern Bypass (M-10) will be converted from existing 2-lane highway to 4-lane motorway with estimated cost of $120 million. Furthermore, the plan includes up-gradation, operation and maintenance of identified stretches of national highways and motorways, maintained in the documents.
According to documents, the NHA has initiated an ambitious programme of $13.6 billion during the last four years and established largest private sector financing regime through public private partnership of $3.4 billion with 882 kilometer motorways.
About 1,785km motorway has been added into the network during the last five years and increased from 575 kilometer in 2013 to 2360 kilometer in 2018. Road infrastructure projects worth Rs 1.74 trillion have been either completed, ongoing or in planning and procurement stages since 2013, which guarantee the socio-economic development of the country, official added.
The NHA completed 35 projects worth Rs 498 billion with a length of 2813 kilometres since 2013. Major 25 highway projects of 1460km length are ongoing and would be completed with Rs 445 billion.