Transaction Structure of Kharian-rawalpindi Motorway Permitted
According to press reports, the Planning Commission of Pakistan has authorized the transaction structure for the PKR 79 billion Kharian-Rawalpindi Motorway project.
At its 18th board of directors meeting, presided over by Planning Minister Asad Umar, the Public-Private Partnership Authority (P3A) granted approval. The approval was obtained after a comprehensive evaluation of the National Highway Administration’s feasibility study on the project (NHA).
In addition, the government would finance the four-lane, 117-kilometer Kharian-Rawalpindi Motorway project via the operational Viability Gap Fund (VGF) to make it more accessible to private sector participation.
In addition, the board resolved to give maximum assistance and optimal investment for the project by combining VGF and money in the most advantageous proportions.
The project will be finished in 24 months and will create a route between Lahore and Islamabad that is faster and shorter than the current route. The project has a 25-year concession duration, including construction, and a 6-month financial closeout time.
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