The Economic Coordination Committee (ECC) of the Cabinet recently granted approval for a significant infrastructure project that exemplifies the success of a public-private partnership (PPP). With the issuance of a government guarantee worth Rs. 9,500 million, the construction of the Hyderabad-Sukkur Motorway on a build-operate-transfer basis has received the green light.
A Step Towards Progress
The ECC, during its meeting held on Monday, deliberated on a proposal presented by the Ministry of Communications and approved a summary to facilitate the construction of the Hyderabad-Sukkur Motorway. This ambitious project aims to enhance connectivity and foster economic growth between the two cities.
Public-Private Partnership Model
The project will be implemented under the Public-Private Partnership (PPP) model, reflecting the collaborative efforts between the NHA and TECMC. The PPP Agreement outlines the responsibilities of each party, with the NHA ensuring the provision of a government guarantee before the financial close, amounting to Rs. 9,500 million. This guarantee, backed by the sovereign assurance of the Government of Pakistan (GOP), serves to instill confidence in the project’s financiers.
Importance of Government Guarantee
Recognizing the significance of a timely financial close, the Ministry of Communications requested the ECC’s approval for the issuance of a GOP guarantee of Rs. 9.5 billion. This guarantee, to be facilitated by the Ministry of Finance, aims to provide reassurance to commercial lenders associated with the project. With the support of the Finance Division and the Planning Ministry, the proposal was presented to the ECC of the Federal Cabinet, underscoring the collective efforts to promote efficient infrastructure development.
Driving Economic Growth
The construction of the Hyderabad-Sukkur Motorway holds immense potential for fostering economic growth in the region. Improved connectivity and enhanced transportation infrastructure will not only facilitate the movement of goods and services but also stimulate trade, create job opportunities, and attract investments.
The approval of a government guarantee for the Hyderabad-Sukkur Motorway project showcases the success of public-private partnerships in driving infrastructure development. With the collaboration between the NHA and TECMC, this ambitious endeavor promises to transform connectivity and foster economic growth between Hyderabad and Sukkur. By recognizing the importance of timely financial arrangements, the ECC has demonstrated its commitment to promoting efficient infrastructure development in Pakistan. As the project moves forward, it holds the potential to unlock new opportunities, empower local communities, and contribute to the nation’s progress.
