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Project Profile

Sukkur-Hyderabad Motorway
Project Information
Details
Sector
Road Transportation
Implementing Agency
National Highway Authority, Government of Pakistan
Location
Sindh Province, Pakistan
Estimated Project Cost
PKR 307 billion (US$ 1.71 billion)
Status
Project has been awarded (Concession Agreement of the project has been signed)
Overview
The Project envisages construction of 306-km 6-lane green-field access-controlled motorway on Public Private Partnership (PPP) basis.

The Project features the only missing link in the north-south motorway corridor of Pakistan and with its completion the travel time between the Karachi and upcountry is expected to be reduced significantly; and commuters will be able to complete their entire upcountry journeys using motorway network.

The Project expects to attract Average Daily Traffic of ~49,000 in the first operational of the Project. The daily traffic is expected to grow at the rate of 5% per annum over the period of concession.
Salient Features
Implementation Modality PPP/ Build-Operate-Transfer (BOT) basis.

The Project will be implemented using Project Finance structure whereby the private party will form a dedicated project company to implement and execute the Project for a total of 25 years period (which includes 30 months construction period).
Government Contributions
  • Land/ Right-of-Way (ROW)
  • Capital Viability Gap Funding (VGF) of PKR 9.5 billion (US$ 45 million)
  • No operational VGF
  • Sovereign Guarantee to secure VGF payment obligations
Government Return
  • Guaranteed revenue share of PKR 408 billion (US$ 2.27 billion)
  • Corporate taxes of PKR 918 billion (US$ 4.5 billion)
  • Project assets, at no cost, at the end of concession period
Private Party Return
  • Project tolling rights
  • Right to exploit commercial development within the Project corridor including development rights for motorway service areas
Contact:
Head Projects
Phone: +92 51 921 1983-5
E-mail: m.danish@p3a.gov.pk
Public Private Partnership Authority (P3A)
5th Floor, Evacuee Trust Complex, Agha Khan Road, F-5/1, Islamabad, Pakistan
Phone: +92 51 921 1983-5