17th P3A Board of Directors Meeting
The 17th Board of Directors’ meeting of Public Private Partnership Authority was held today in Islamabad under the Chairmanship of Mr. Asad Umar, Minister for Planning, Development and Special Initiatives (MoPD&SI). The Deputy Chairman Planning Commission, Secretary MoPD&SI, nominee of Secretary Finance Division, Secretary Communications, Member Private Sector Development, Chairman NHA, Mr. Malik Ahmad Khan CEO, P3A and two private members of the Board, Ms. Huma Ejaz Zaman and Mr. Akbar Ayub Khan also attended the meeting.
The Board of P3A approved the Bid Documents of the landmark Sukkur-Hyderabad Motorway Project proposed to be constructed on Public Private Partnership (PPP) basis at approved construction cost of approximately PKR 191 Billion (US$ 1.23 Billion). The Commercial Feasibility Study and revised Transaction Structure of Sukkur Hyderabad Motorway (the Project) was previously approved by the Board of P3A.
The Project entails construction of a 306 km green-field 6-lane access controlled toll road on Build-Operate-Transfer (BOT) basis. The Project is expected to be completed in 30 months following financial close. The concession period of the Project is spread over 25 years. Private sector will be given the tolling and other ancillary development rights of the Project to cover its life-cycle costs and earn adequate rate of return on investment. Via an innovative structure, the Government of Pakistan (GoP) is supporting the financial viability & bankability of the Project through provision of capital and operational Viability Gap Funding (VGF) by committing to provide maximum of PKR 43 billion during the construction period and operational VGF payments spread over the first 7 operational years.
Following the Board’s approval of the Bid Documents, the Project will be floated in the market and the bidders shall be given adequate time to prepare their proposals.
The Board also approved the Public Private Partnership Working Party (P3WP) Regulations, 2021. Speaking on the occasion, Mr. Asad Umar and the other members of the P3A Board appreciated the performance and efforts of the P3A team. The Minister highlighted that the development of transportation corridors was critical to the present Government’s development strategy and the Sukkur-Hyderabad Motorway would be a vital section of the North-South connectivity and would also have a far reaching social and economic impact.