P3A & NHA collaborate on development of Sialkot-Kharian Motorway Project

ISLAMABAD, Pakistan: The Public-Private Partnerships (PPPs) in the Road Sector are an established mode of service delivery worldwide. Pakistan also has been successful in attracting significant Private Sector participation in building and operating road infrastructure on a PPP basis.


The Public-Private Partnership Authority (P3A) has the mandate to facilitate Federal Implementing Agencies (IA) in developing, structuring, and procuring their infrastructure projects on a PPP basis, and under the P3A (Amendment) Ordinance 2020, the Board of P3A is empowered to approve such ‘Qualified’ PPP projects which can demonstrate value for money to the public sector while retaining bankable financial structure for the private sector.

The P3A is collaborating with and facilitating the National Highway Authority (NHA) in the process of developing the transaction for seeking the participation of qualified Private Sector Parties to construct and operate 70 km long four-lane Sialkot Kharian Highway on a PPP basis. The commercial feasibility study of the project has been completed by the NHA.

The project is likely to involve injection of upfront capital subsidy by the government to supplement the financial viability and bankability of the Project.

The government is also engaging with the Word Bank for assistance in the devising of a transaction structure for the project that is capable of offering a value-for-money solution to the Public Sector while allowing a viable structure for the private sector participation.

The project is proposed to augment the existing road network in Punjab and will pave the way for launching phase-II of the project taking the motorway further to the City of Rawalpindi, said the CEO of the P3A.

The project has been approved by Central Development Working Party and has been recommended for approval to the Executive Committee for the National Economic Council (NCE). The project is expected to be floated in the market within this financial year.

Mati-Ullah is the Online Editor For DND. He is the real man to handle the team around the Country and get news from them and provide to you instantly.

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