Govt to save Rs50 billion on Sukkur-Hyderabad Motorway project

Federal Minister for Planning, Development and Special Initiatives Asad Umar chaired a meeting to review various road infrastructure projects under the public-private partnership mode.

During the meeting he was briefed that the government can potentially save Rs50 billion by constructing the Sukkur-Hyderabad Motorway under Public Private Partnership (PPP).

The per-kilometer construction cost of the six-lane motorway under PPP mode is Rs596.4 million compared with the cost of Rs760 million for the Sukkur-Multan motorway built under the CPEC. This would provide a saving of Rs164 million or 21.5 percent. In terms of total project cost, it translates into savings of Rs50 billion.

At the CPEC project rates, the Sukkur-Hyderabad motorway cost was Rs232 billion. Now, the project has been placed before the Public-Private Partnership and according to the Ministry of Planning, the construction of Sukkur-Hyderabad motorway under PPP mode would be Rs182.5 billion.

Three road projects are currently under process. The Sukkur-Hyderabad Motorway project at the cost of Rs182.5 billion, the N-25 Karachi-Quetta Road worth approximately Rs200 billion, and Mianwali-Muzaffargarh Road valued at approximately Rs100 billion.