Hyderabad-Sukkur Motorway To Cost An Estimated Rs. 163 Billion

Three international firms/joint ventures have submitted bids for Hyderabad-Sukkur Motorway, which would be completed with an estimated cost of Rs 163 billion.

Six international firms were pre-qualified against the Hyderabad-Sukkur Motorway project — at an estimated cost of Rs 163 billion, which the government is undertaking on Build-Operate-Transfer (BOT) basis.

According to documents, government will provide land and support the project viability by allowing concessionaire to raise a portion of project cost in form of buyers/suppliers credit. Additionally the project will be given on lease for up to 20 years.

Firms/Ventures

NHA had sought Expression of Interest (EoI) from local and international investors/firms for Hyderabad-Sukkur motorway while expecting up to 60 percent investment of the project cost of Rs 163 billion.

However three firms/joint ventures submitted their bids including:

• m/s China State Construction Engineering Corporation + SACHAL Joint Venture (China/Pakistan),
• m/s China Communication Construction Company Limited (China)
• m/s Shan Dong Hi Speed and Frontier Works Organization (FWO) and Sinohydro Joint Venture (China/Pakistan)

Motorway Specifications

Sources revealed that bids have been opened and technical evaluation is under process. The 296 km long project will be a 6-lane motorway with a design speed of 120 km/hour, 89 bridges, 11 interchanges and 243 underpasses.

The construction work is expected to launch in the first quarter of 2017, the deadline given by Prime Minister Nawaz Sharif and would be completed in three years.

Spokesperson of the NHA said that the whole process of award of Sukkur Hyderabad motorway is on track and the Authority is fully confident to meet the desired timeline for this very important section of China Pakistan Economic Corridor (CPEC).

Peshawar-Karachi Motorway Project

The spokesperson said that the government is undertaking construction of Peshawar-Karachi Motorway (PKM), a high speed, controlled access, 6-lane modern motorway system. The motorway forms part of trade corridor linking ports of Karachi and Gwadar with China, Afghanistan and Central Asian States.

The general alignment runs parallel to the National Highway N-5, which carries 65 percent traffic of the country. All the segments of PKM have either been completed or awarded for construction except the Hyderabad-Sukkur motorway link of PKM section, the official added.

Government Will Bear 40% of The Total Cost

In a bid to attract investors, the government will apply China Pakistan Economic Corridor (CPEC) agreement clauses for offering Sukkur-Hyderabad Motorway on BOT, giving investors the choice to bring their own contractors/ manpower and plan/design. Since it is a very big project with high costs, the government expects that the private investors will at least bear 60 per cent of the project cost and the remaining may be borne by the government through Public Sector Development Program.

According to the Ministry of Planning, Development and Reform Rs 2.5 billion has been earmarked for the Sukkur-Hyderabad section (296 kms) in the PSDP 2016-17 while the project will be completed at a total cost of Rs 163 billion.

Other Projects Funded By China

The NHA official said that the investor may bring their own manpower or may use local resources through Joint Venture (JV). China is currently funding two road projects namely, Havelian-Thakot and Multan-Sukkur road projects under the CPEC, and according to a clause of the CPEC agreement, these project are also being awarded to Chinese contractors, besides Chinese labours are working in these projects, sources confirmed.

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