ISLAMABAD: The National Highway Authority (NHA) Executive Board recommended the PC-I for the approval of Central Development Working Party (CDWP)/ Executive Committee of National Economic Council (ECNEC) for construction of Kharian-Rawalpindi Motorway at the revised PC-I cost of Rs 169.323 billion.
The initial PC-I cost of Rs 108.41 billion increased by around 57 percent. The revised PC-I includes Capital Viability Gap Funding (VGF) of Rs 40 billion and operational VGF of PKR Nil up to KIBOR 10 percent. The Financial subsidy will be borne by the government if KIBOR remains more than 10 percent during the debt servicing period. ECNEC had earlier approved the project in January 2022 with a total cost of Rs 108.41 billion. A consortium M/s Techno-Matracon (JV) was declared as the successful bidder, however, the LOI was withdrawn due to failure to address key observations.
The project is supposed to be completed in two years, with a total length of 117.2 kilometers and will be an extension of the Lahore-Sialkot Motorway. The motorway will traverse parallel to the N-5, passing through populous areas before terminating near Rawat at T-Chowk (Junction of Islamabad Expressway with N-5).
The NHA Executive Board directed to grant bidders an extended period for clarification of observations to avoid project execution delays.
Punjab CM Maryam Nawaz Sharif approves much-awaited IT City Project in Lahore.