NHA involves private sector for highway construction projects

[Salman]

NHA involves private sector for highway construction projects

ISLAMABAD: The National Highway Authority (NHA), in line with the present government’s policy, has involved private sector in the construction of new highways and motorways in the country.
An NHA official told APP on Monday that the authority had established a private sector cell for providing one-window facility for the projects. It had taken steps for development of a public-private partnership policy, legal framework and standard operating procedures for handling partnership projects at all stages, he added.
Apart from these, the NHA has standardized its documents, ie, pre-qualification criterion, request for proposals, including evaluation criteria and a concession agreement, he said.
The spokesman said the construction work on Karachi-Hyderabad Motorway (M-9) would start in near future on build, operate and transfer (BOT) basis.
He said the Lakpass Tunnel was the first major NHA project undertaken on BOT basis in Balochistan, which was operation for the last five years.
Earlier, 10 service areas were built on the Islamabad-Lahore Motorway on BOT basis for a 15-year concession period.
Recently the NHA signed an agreement with the Frontier Works Organization (FWO) for recarpeting and renovation of Lahore-Islamabad Motorway (M-2) in accordance with international standards, the spokesman said.
He said private sector investment would be a major part of the financing for Karachi-Lahore Motorway, which would form part of China Pakistan Economic Corridor.
Under the Public Sector Development Programme 2014-15, an allocation of Rs 6 billion has been made for 276 km Lahore-Abdul Hakeem-Khanewal Section of Karachi-Lahore Motorway (KLM) on BOT basis with government’s share of 30%. The total cost of the project is Rs 41 billion, out of which the government is going to allocate Rs 6 billion.
Moreover, 296 km Sukkur-Hyderabad section will also be built on BOT basis as Rs 3 billion has been allocated in the PSDP for 2014-15 against total cost of Rs 44.4 billion.
Future BOT projects include Shahdara Flyover (N-5), a six-lane
elevated flyover at Shahdara in Lahore with 25-year concession period,
Lahore-Nankana Sahib Expressway and connecting road network for the New Benazir Bhutto International Airport.