Rs 43 billion contract of Lahore-Islamabad Motorway awarded to FWO, PAC told

The federal government has awarded Rs 43 billion contract of resurfacing and construction of Lahore-Islamabad Motorway (M2) to Frontier Works Organisation (FWO) whereas heads of various commercial banks are financing this project being implemented under a Build-Operate-Transfer (BOT) system. NHA Chairman Shahid Ashraf Tarar informed the Public Accounts Committee (PAC) on Wednesday that BOT project will be totally financed by private sector; however the NHA will get a portion of the profit.
Syed Khursheed Shah chaired the meeting which examined the NHA audit report for financial year 2013-14. Giving further details, he said that the FWO will be responsible not only for resurfacing the Motorway but also constructing the services areas, toll plazas set up along either side and other facilities for the travellers. The FWO will also lease out the maintenance of Motorway for 25 years.
He explained that the Motorway should have been rehabilitated after 10 years but it could not happen due to shortage of funds. In December 2014, a signing ceremony of Lahore-Islamabad Motorway (M2) documents was held at HQ Frontier Works Organisation (FWO). Under the agreement, the FWO is renovating M2 to make it at par with the international standards. M2 renovation is the biggest infrastructure project being initiated on BOT and will accelerate the pace of development through public private partnership.
The project will be completed by end of 2017 with minimum disruption to traffic. M2 is undergoing a major renovation to provide better travel and transit facilities for the commuters. The scope of work includes a complete overlay (carpeting) for 337 kilometer length, a modernising of motorway facilities & equipment, repair and rehabilitation to enhance motorway life.