National Highway Authority (NHA) through its dedicated efforts in the last one year took a lead in the road infrastructure development through the public private partnership NHA successfully attracted private sector investment and has awarded five projects worth over Rs. 144 billion, which is more than the average annual Foreign Direct Investment (FDI) in Pakistan, an official source said on Monday.
He said that besides other benefits, the expected revenue earnings from these 5 projects are over Rs. 391 billion, he said.
These projects including 357 km Overlay and Modernization of Lahore-Islamabad Motorway (M-2) which cost Rs 56 billion and 2 km Habibabad Bridge on N-5 which cost Rs 0.8 billion and both these projects have been completed, he added.
The 136 km Karachi-Hyderabad Motorway (M-9) which would cost Rs 44 billion and 91.3 km Sialkot – Lahore Motorway costing Rs 44 billion are ongoing projects while 80 km Multan-Muzaffargarh-D.G. Khan (N-70) costing Rs 9.3 billion is planned. Total length of these projects is 666.3 km, he added.
It is worth a mention that the Public Private Partnership (PPP) and Build, Operate and Transfer (BOT) are mechanisms through which private sector is responsible to arrange financing for the project.
The private party also bears the responsibility of design, construction, operation and maintenance of the project and in return the party is authorized to receive toll/other revenue for a certain period.