The Executive Board of the National Highways Authority (NHA) has approved
extension of time in achievement of financial close period for construction of
Hyderabad-Sukkur Motorway (M-6).
The board has granted approval to the concessionaire, M/s TECMC (Pvt) Ltd,
which is a SPV formed by the consortium M/s Techno-CMC-ACC, for an extension
of time (EOT) to achieve financial close for the Hyderabad-Sukkur Motorway (M-
6) Project. The EOT period will be four months, starting from June 1, 2023, to
September 30, 2023. The extension is subject to the concessionaire providing
sufficient evidence of their efforts to achieve financial close, as per Section 10.4.2
of the concession agreement. The PPP Wing of the NHA verified and
recommended this decision.
The project aims to construct the Hyderabad-Sukkur Motorway (M-6) on a build-
operate-transfer (BOT) basis, making it the largest Public-Private Partnership
(PPP) project in the country, with a total cost of Rs307 billion. The concession
agreement for the M-6 project was previously approved by the Public Private
Partnership (P3A) Authority Board. According to the approved transaction
structure, the government of Pakistan will contribute only Rs9.5 billion during the
construction period, while the private party (M/s TECMC) will arrange the
remaining project cost of Rs297.5 billion through equity and commercial debt.
During the concession period, the private party will also pay a minimum of Rs408
billion to the NHA, along with estimated corporate taxes of Rs908 billion. At the
conclusion of the concession period, the project will be transferred to the NHA at
no additional cost.
The motorway spanning over a length of 306 kilometres will comprise six lanes.
Designed to be constructed as a climate resilient project, the private party shall
construct and operate the project for 25 years commencing from the date of
execution of the PPP Agreement.
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