Rawalpindi: The National Highway Authority (NHA) Executive Board has proposed a revised PC-I for constructing the Kharian-Rawalpindi Motorway. The proposal has been recommended for approval by the Central Development Working Party (CDWP) and the Executive Committee of the National Economic Council (ECNEC).
The revised PC-I comes with a substantial increase in cost, now standing at Rs 169.323 billion, compared to the initial estimate of Rs 108.41 billion, marking an escalation of approximately 57 percent.
Documents indicate that the revised cost includes capital Viability Gap Funding (VGF) of Rs 40 billion, with the government poised to bear the financial subsidy if the KIBOR remains above 10 percent during the debt servicing period. The meeting, chaired by Arshad Majeed Mohmand, Chairman of NHA, also greenlit the submission of a project qualification proposal to the Public Private Partnership Authority (P3A) by the P3A Act.
This development comes after the earlier approval of the Kharian-Rawalpindi Motorway project by ECNEC in January 2022, with a total cost of Rs 108.41 billion. However, challenges arose during the bidding process, leading to the withdrawal of the letter of intent (LOI) issued to the successful bidder, necessitating further clarity in future bidding processes to ensure timely project execution.
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