NHA, private sector to build new roads

[Salman]

ISLAMABAD:
The National Highway Authority (NHA) has involved private sector in the construction of new highways and motorways in the country.
This was stated by the NHA spokesman on Monday. He said that the authority had established a private sector cell for providing one-window facility for the projects. “The authority has taken steps for development of a public-private partnership policy, legal framework and standard operating procedures for handling partnership projects at all stages,” he said.
The official said that the NHA had standardised the process of documentation, pre-qualification criterion, request for proposals, including evaluation criteria and a concession agreement.
The spokesman said that the construction work on the Karachi-Hyderabad Motorway (M-9) would start in the near future on build, operate and transfer (BOT) basis. He said that the Lakpass Tunnel was the first major NHA project undertaken on BOT basis in Balochistan. It had been operational for the past five years.
Earlier, 10 service areas were built on the Islamabad-Lahore Motorway on for a 15-year concession period.
“Last week, the NHA signed an agreement with the Frontier Works Organisation (FWO) for repair and renovation of the Lahore-Islamabad Motorway (M-2) in accordance with international standards,” he said.
He said that private sector investment would be a major part of the financing for the Karachi-Lahore Motorway, which would form part of the China-Pakistan Economic Corridor. “Under the Public Sector Development Programme 2014-15, an allocation of Rs6 billion had been made for the 276-km Lahore-Abdul Hakeem-Khanewal Section of Karachi-Lahore Motorway (KLM) on BOT basis. The government’s share is 30 per cent in the project. The total cost of the project is Rs41 billion, out of which the government is going to spend Rs6 billion,” he said. “Moreover, the 296-km Sukkur-Hyderabad section will also be built on BOT basis,” he said.
Published in The Express Tribune, November 11th, 2014