Islamabad: The government is considering restructuring the World Bank-funded Peshawar-Torkham Motorway project after prolonged delays and a sharp increase in estimated costs, according to official documents.
The 47-kilometre motorway project, being implemented under the Khyber Pakhtunkhwa Economic Corridor (KPEC), was originally approved at a cost of PKR 41.44 billion. However, its estimated cost has now risen to nearly PKR 130 billion, prompting authorities to review its scope and implementation strategy.
The project is financed through a USD 460 million World Bank loan agreement signed in December 2019. The loan became effective in June 2020 and had a closing date of May 28, 2026. Despite the passage of more than five years, construction has yet to begin.
According to officials, the Central Development Working Party (CDWP) last month cleared a working paper proposing a revised implementation approach. Under the revised plan, the 55-kilometre Southern Link Road component has been removed from the project scope, while the main Peshawar-Torkham Expressway has been divided into three construction packages of approximately 14.3km, 15km and 15km.
The motorway was planned as a four-lane, access-controlled corridor connecting Peshawar with Torkham and forming part of the broader Peshawar-Jalalabad-Kabul motorway initiative. The project was designed to facilitate regional trade and improve connectivity between Pakistan and neighbouring countries in Central and South Asia.
Planning Commission documents noted that repeated bidding rounds were cancelled after submitted bids exceeded approved cost estimates and available loan financing. Officials said the original project estimates were based on preliminary designs and the National Highway Authority’s Composite Scheduled Rates of 2014.
The Planning Commission also stated that a detailed design is still under preparation. A revised PC-I is expected to be submitted after completion of the detailed design and incorporation of updated 2025 construction rates.
Meanwhile, discussions are underway with the World Bank regarding an extension of the loan period to facilitate implementation of the revised project plan.
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