Public-Private Partnership Authority (PPPA) green-lights Hyderabad-Sukkur Motorway project under CPEC

Public Private Partnership Authority has given go-ahead to implementing agencies for development of three infrastructure projects including Hyderabad-Sukkur Motorway, Northern Bypass and NUST Teaching & Research Hospital.

A meeting of second board of directors of Public Private Partnership Authority was held under the chairmanship of Federal Minister for Planning, Development and Reform Makhdum Khusro Bakhtyar here on Friday. Deputy Chairman Planning Commission Mohammad Jehanzeb Khan, Secretary Planning Zafar Hasan, senior officials of the ministry and members of Board of Directors were also present in the meeting. The meeting was apprised that under section 3 of PPPA Act, IPDF was transformed into Public Private Partnership (PPP) Authority in June 2018 and its primary objective is to facilitate ministries and government agencies in developing and procuring infrastructure projects on PPP basis.

The minister stated that private sector has an important role to play in the sustained development of the country. Talking about NUST Teaching and Research Hospital, the minister said that the proposed 500-bed medical facility will provide new health service and cater to healthcare needs of the public, besides enhancing research and innovation practices in the medical field.

It is pertinent to mention here that the implementing agencies will commence work on projects preparation, which once prepared will be placed before the board for its approval. Various other agenda items came under deliberation during the meeting. The meeting agreed to co-opt members from the private sector for detailed commercial, technical and financial analysis as well as to assess viability of the projects. The Board also approved appointment of external auditors of the authority. Regarding the approval of procedural rules of the authority, it was decided to defer the matter till next meeting for detailed scrutiny.

According to the sources, the estimated cost of Hyderabad-Sukkur Motorway project under China-Pakistan Economic Corridor (CPEC) is likely to escalate to over Rs 200 billion against the initial estimates of Rs 175 billion due to repeated delays in project execution. The previous federal government had awarded the project to China State Construction Engineering Corporation at an estimated cost of Rs 175 billion with scheduled completion in three years on build-operate-transfer (BOT) basis. However, the incumbent PTI government soon after coming into power had shelved Hyderabad-Sukkur Motorway project, citing financial constraints.