Karachi: The National Highway Authority (NHA) has revised the Sukkur-Hyderabad motorway (M6) budget to PKR 3.8 trillion, news sources reported on April 4. The funding has been revised from PKR 191 billion to the current figures for the second time since the project’s approval in September last year.
Read: PPPA, NHA to sign agreement for Sukkur-Hyderabad Motorway project
Reportedly, the NHA revised the Project Concept-1 (PC-1) during its meeting, citing changes in design and the inclusion of new sections. The budget was revised to include consultancy, hydraulic model study, feasibility study, commercial feasibility study and right of way. The project is being developed under the Public-Private Partnership (P3) model, where the government and private firms will share the cost of the total project. Of the total, the government of Pakistan will contribute a total of PKR 19.8 billion, while the private firms will pay the rest. The project is a 306-kilometre extended 6-lane access controlled toll road. It will be completed on the build-operate-transfer (BOT) model.
Read: NHA to build 3,300 km road network in Balochistan
The project is anticipated to be completed in 30 months following financial closing, while the private firm will operate the project for 25 years. Under the arrangement, the government of Pakistan (GOP) is committed to providing a maximum of PKR 43 billion in capital and operational Viability Gap Funding (VGF) during the construction period, with operational VGF payments spread over the first seven operational years to support the project’s financial viability and bankability.