The Special Investment Facilitation Council’s (SIFC) Executive Committee (EC) has approved the construction of the M-12 (Sialkot-Kharian) and M-13 (Kharian-Rawalpindi) motorways as six-lane highways from the outset. Necessary approvals are being secured from relevant authorities.
Project Modifications
- Hydrologic Study Impact: A hydrologic model study for the Chenab River bridge necessitated road realignment, delaying land acquisition for the revised section.
- Scope Changes: Adjustments by the Ministry of Defence, coupled with inflation and rising KIBOR rates, significantly altered the project scope.
- Cost Escalation: The project cost increased from Rs 22.5 billion in 2021 to Rs 61.523 billion for a four-lane facility and Rs 71 billion for a six-lane facility by December 2024.
Six-Lane Decision
- SIFC Recommendation: Following a Ministry of Defence request in November 2023 to renegotiate the PPP Agreement, the SIFC endorsed a six-lane motorway.
- Traffic Study: Confirmed the need for additional lanes, with initial six-lane construction costing Rs 9.5 billion more but saving Rs 11 billion compared to future expansion.
- Approved Costs: The base construction cost is Rs 77 billion, with the total project cost at Rs 81.97 billion.
Next Steps
- The Ministry of Communications and National Highway Authority (NHA) will submit a position paper for government approval.
- The NHA will amend the PPP Agreement to adjust the financing structure.
Other Motorway Projects
- Kharian-Rawalpindi Motorway: Progressing alongside the Sialkot-Kharian project.
- Sukkur-Hyderabad Motorway: Bidding to commence soon, with contract awards targeted for October 2025.
- N-25 Karachi-Quetta Section: NHA instructed to complete construction within three years and establish service and rest areas.
- Master Plan: NHA is developing a comprehensive plan for motorways and highways to ensure seamless interconnectivity.
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