P3A Board approves Sukkur-Hyderabad Motorway (M6) Project
ISLAMABAD, Feb. 18 (Gwadar Pro) – The Public Private Partnership Authority (P3A) Board on Thursday approved the project proposals for the construction of Sukkur-Hyderabad Motorway (M6), a critical component of China-Pakistan Economic Corridor (CPEC), on a6 Public Private Partnership (PPP) basis.
The Project encompasses construction of 306 KM green-field controlled access motorway at a cost of Rs 307 billion per successful bidder’s proposal. The successful bidder has proposed to pay Rs 408 billion-guaranteed revenue share to the Government of Pakistan/ National Highway Authority over the operations period of 22 years. The Project also expects to generate Rs 918 billion in the form of corporate taxes.
During the meeting, it was informed that M6 was the only missing link between the country’s north-south bound motorway networks. With its completion, commuters will be able to use the motorway network while travelling from the port city of Karachi to Peshawar and vice-versa. The Project is expected to generate phenomenal economic benefits through promoting tourism, creating job opportunities, reducing travel time & saving costs and contributing towards socio-economic development of urban & rural centers along the corridor.
M6 is one of the most important projects in the Sindh Package that the incumbent government had designed to benefit masses of the Sindh province and with its coming online the region is going to witness a major uplift in trade and economic activities, according to an official of the meeting.
During the meeting, it was informed that Sindh will pay for the land acquisition on behalf of NHA and meetings in this regard took place with provincial authorities of Sindh. NHA had initiated the International Competitive Bidding process in which it had received two bids (M/s ZKB & M/s Techno-CMC-ACC), the meeting was informed. Both bids were able to meet technical qualification requirements as specified in the bid documents. However, the consortium led by M/s Techno offered the best financial terms to GoP/NHA and were declared as the most advantageous bidder. Following approval of the PPP Contract by the P3A Board, the concessionaire will initiate a financial close process for the Project followed by the construction and operations period. The concession period of the Project is 25 years including a 30- month construction period and a 6-month financial close period.