Government plans to assign provision of Rs92b for road project

Government plans to assign provision of Rs92b for road project

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For the Hyderabad-Sukkur motorway project, the Public Private Partnership Authority (PPA) has declared the budget for the provision of Rs92 billion. Although, it is expected that the cost of the project may increase from Ra165 billion a year ago to Rs201 billion now depending on the infrastructure.

The toll will be collected from contractors for 35 years keeping the first-rate toll to be Rs869 per car. This motorway has been the biggest project in Sindh announced by PM Imran Khan last week. The board has accepted the establishment of the motorway project with capital and operational viability gap funding (VGF) of a total of Rs92 billion on BOT (build, operate, and transfer).

The provision is divided into two parts: Rs43billion for construction, Rs49 billion as operational VGF with per annum debt of seven years.

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