Financing agreement for Karachi-Thatta dual carriageway signed

Karachi

Sindh Chief Minister Syed Qaim Ali Shah signed the financing agreement for Rs1.35 billion Karachi-Thatta dual carriageway on Tuesday in the presence of provincial ministers and other stakeholders concerned.

The estimated cost of the project is around Rs1.35 billion. According to the agreement signed, 70 percent of the cost (Rs6,199 million) will be arranged through commercial loan while the remaining 30 percent amount (Rs2,657 million) will be contributed through equity, of which 53 percent will be borne by the Frontier Works Organisation (FWO) and the remaining Rs1,240 million by the Sindh government.

“The carriageway will be a milestone in development and will prove to be the most important artery not only from Karachi to Thatta, but also onwards to the Thar coal field,” he remarked on the occasion where provincial ministers and representatives of Frontier Works Organisation and Dubai Islamic Bank were also present.

“I am committed to the people of Sindh for creating a congenial atmosphere for investment in the industrial sector, particularly the Thar coal filed,” he said. “The improved access to Thatta and Thar will serve thousands of commuters living along this route. He said the carriageway will also help open up areas for soft infrastructural development, including better services of health and education, because many towns would become more accessible.”

Also speaking on the occasion, senior minister for finance Syed Murad Ali Shah said the project was especially significant because of its connection with the Thar coal field. “After a fair and transparent bidding process, the Sindh government has joined hands with the Frontier Works Organisation under Public-Private Partnership mode to double the number lanes in the existing 49-kilometre-long National Highway N-5, starting from Gaggar Phatak to Thatta Bypass,” he said.

Elaborating on the financial agreement he said the total estimated cost of the project was Rs1.35 billion and 70 percent was to be arranged through commercial loans and the remaining 30 percent will be managed through equities by the Frontier Works Organisation (FWO) and the provincial government.

The Concession Agreement for the project was signed on May 7, 2015, between the works and services department and the Frontier Works Organization.

The financial close for the project has been achieved and commercial operations are expected to commence by the end of 2017. The Frontier Works Organization shall design and construct the dual carriageway within the construction period of two years and will also operate and maintain the dual carriageway through the life of 25-year concession period.

The director of Frontier Works Organisation, Major General Mohammad Afzal, while addressing the ceremony said it was an honour for him to contribute to the development of Sindh.