Latest news with #Rs436
Express Tribune
09-04-2025
- Business
- Express Tribune
PM allays Sindh's concerns over motorway project
Prime Minister Shehbaz Sharif on Wednesday conveyed to Sindh CM Murad Ali Shah that the construction of the Hyderabad-Sukkur Motorway was still a priority of his government, and assured that the project would soon be included in the PSDP. The PM penned a letter to the chief minister over the project, known as M-6. Shehbaz informed CM Shah that Sindh's reservations on the issue were justified and that the construction work on the project would be initiated soon. A controversy erupted on the M-6 project recently, as Sindh's Local Government Minister Saeed Ghani raised objection during a meeting of the Executive Committee of the National Economic Council (Ecnec) to the approval of the Lahore-Sahiwal-Bahawalnagar Motorway. Talking to The Express Tribune, last week, Ghani had said that he raised objection to the construction of the new motorway at a 65% higher cost of Rs436 billion because work on the 306 kilometres Hyderabad-Sukkur Motorway could not start because of the lack of funding. Before the Ecnec meeting, National Highway Authority (NHA) Chairman Sheheryar Sultan had told the Senate Standing Committee on Planning that the government was in discussions with various creditors for financing the M-6 project. In January, Chief Minister Shah had written a letter to the prime minister, emphasising that constructing the Hyderabad-Sukkur Motorway was crucial for the nation's development. He accused the NHA of injustice in the ADP for the province. According to the letter from the PM said that he was personally interested in the construction of the motorway and wanted the project completed in the public-private mode but his efforts could not bear fruit. PM said that Sindh's reservations were valid, and the construction of the motorway would start soon. The motorway will be made part of the PSDP soon, the PM assured the chief minister.
Express Tribune
29-03-2025
- Business
- Express Tribune
Sindh objects to motorway construction in Punjab
Listen to article Sindh has raised objections to the federal government's decision to fund a new Rs436 billion Punjab-centric motorway by again ignoring the Sukkur-Hyderabad motorway despite declaring it as a top priority. The federal government's decision to fund the Lahore-Sahiwal-Bahawalnagar motorway is also in violation of the National Fiscal Pact, signed by the federal and four provincial governments as part of the $7 billion International Monetary Fund (IMF) programme. The pact requires the devolution of expenditures in sectors such as higher education, health, social protection and regional public infrastructure to provinces. Sindh Minister for Planning and Development Saeed Ghani raised the objection during a meeting of the Executive Committee of the National Economic Council (Ecnec) held in the current week. Ecnec approved the Lahore-Sahiwal-Bahawalnagar Motorway at a 65% higher cost of Rs436 billion. Talking to The Express Tribune, Ghani said that he raised objection to the construction of the new motorway with federal funding as the decision was not justified because work on the 306km Hyderabad-Sukkur motorway could not start because of the lack of funding. Compared to the 295km Lahore-Bahawalnagar motorway costing Rs436 billion, the cost of 306km Sukkur-Hyderabad motorway is estimated at nearly Rs400 billion. National Highway Authority (NHA) Chairman Sheheryar Sultan this week told the Senate Standing Committee on Planning that the government was in discussions with various creditors for financing the Sukkur-Hyderabad motorway, known as M-6. Saeed Ghani said that when he objected to the funding of Lahore motorway, he was told that the federal government was still trying to find funding sources. However, an Ecnec summary stated that the source of funding was "100% through federal PSDP", he added. Pakistan is facing a serious resource crunch and there is also a bar by the IMF on funding provincial-nature schemes. Provinces get a 57.5% share in taxes collected by the federal government. Contrary to the Lahore motorway, the Sukkur-Hyderabad motorway is part of the main South-North road network and is the only missing link. Federal Minister for Planning Ahsan Iqbal said that Ecnec allowed NHA only to start work on package-I (a) from the Lahore Ring Road to the Raiwind Kasur Road Interchange, measuring 18.5 km, through the Public Sector Development Programme (PSDP) funds where it had acquired land. For remaining portions, the NHA would carry out a feasibility study and approach Punjab for 50:50 share and then submit a new PC-1 for approval, he added. However, Ecnec's statement included the Rs436 billion project among 13 schemes having total cost of nearly Rs1.3 trillion, which it approved on Tuesday. The Lahore motorway project comprises construction of two sections. First section consists of a six-lane motorway with a length of 220 km, starting from the Lahore Ring Road and passing through Hujra Shah Muqeem, Depalpur, Okara, Sahiwal, Chichawatni, Harappa and terminates on the National Highway, N-5, near Kassowal. The second section, having four lanes with a 75km length, is an offshoot of the first section near Depalpur and passes near Pakpattan, Arifwala, further crosses Sutlej river and terminates at Michanabad. The revised PC-I was recommended by the Central Development Working Party (CDWP) in June 2024 with conditions that package-I of phase-I of the project, starting from the Lahore Ring Road to the Raiwind Kasur Road Interchange measuring 18.5 km, and the Raiwind Kasur Road Interchange to the Bhimke-Chunian Road measuring 33 km (package-II) would only be executed by the NHA under the Economic Development Cooperation Fund (EDCF) of the Korean Exim Bank. The Korean bank provided a loan of $269 million, or Rs75 billion. CDWP had decided that land acquisition would be carried out by the NHA to the extent of package-1 of 51.5 km prior to the start of procurement/execution of package-I. The planning ministry document revealed that work on phase-I (a) of package-I (the Lahore Ring Road-Raiwind Kasur Road Interchange of 18.5 km out of the total length of 295 km, had already been taken up for construction, which is now at advanced stages of procurement. The Frontier Works Organisation (FWO) is the lowest bidder for the package-I, according to these documents. The cost of the package-I (a) from Lahore to Raiwind Road is Rs17.4 billion, including Rs3.7 billion earth work cost. Ecnec was requested that as 90% land acquisition process had been completed for package-I (a), the NHA may be allowed to start work on package-I (a) through PSDP funds as per the originally approved PC-I and package-I (b) on full availability of funds within the stipulated time period.
Express Tribune
25-03-2025
- Business
- Express Tribune
Govt approves Rs1.3tr mega projects
Listen to article The government on Tuesday approved over a dozen mega projects worth Rs1.3 trillion, many of which were already under implementation but have seen significant cost escalations. Among them is the construction of a new federal-funded motorway in Punjab, now costing Rs436 billion. The Executive Committee of the National Economic Council (ECNEC), the country's top project approval authority, sanctioned these projects, including major infrastructure developments and a satellite initiative. Chaired by Deputy Prime Minister Ishaq Dar, ECNEC approved 13 schemes, including two flood-related projects in Sindh. According to a statement issued by the Deputy PM's Office, these 13 projects span key sectors, including transport, communications, railways, space technology, and public infrastructure. The Rs1.3 trillion allocation exceeds this year's annual federal development budget, with some new projects also receiving provincial funding. Among the most significant approvals was the Lahore-Sahiwal-Bahawalnagar Motorway, stretching 295 kilometres. Initially approved in August 2023 for Rs264 billion, its cost has now increased by 65% to Rs436 billion. Despite severe resource constraints, the federal government is proceeding with the project, even though it begins and ends in Punjab. The National Fiscal Pact, signed under the International Monetary Fund's (IMF) directives, prohibits such projects from being federally funded. In January, Prime Minister Shehbaz Sharif instructed the Punjab government to finance at least half of the motorway's cost, but no final decision has been made. ECNEC was informed that 90% of the land acquisition for Package-I of the motorway is complete. The National Highway Authority (NHA) has been permitted to commence construction from Lahore Ring Road to Raiwind-Kasur Road Interchange through Public Sector Development Program (PSDP) funds, based on the originally approved PC-I. Additionally, NHA will reassess the alignment to integrate with existing motorways, per discussions held in a meeting chaired by the PM in January. It was further decided that the NHA would re-engage with the Punjab government to secure 50% of the total project cost. With only Rs1.1 trillion allocated for 1,071 ongoing projects, and amid tax revenue shortfalls, new projects will further strain the already limited resources. Even the Rs1.1 trillion development spending is at risk of deep cuts. Pakistan Optical Remote Sensing Satellite (PRSS-O2) ECNEC approved the Pakistan Optical Remote Sensing Satellite (PRSS-O2) project at a revised cost of Rs19.5 billion. The project is 85% funded by a Chinese concessional loan. PRSS-O2 will feature an optical payload capable of capturing high-resolution earth imagery in a panchromatic band. Sindh flood emergency rehabilitation ECNEC sanctioned the revised cost of Rs88.4 billion for the Sindh Flood Emergency Rehabilitation Project (SFERP) Phase-I, an increase of Rs22.4 billion or 34%. The project aims to restore roads, water supplies, drainage systems, and improve food security and livelihoods across Sindh. Originally approved in December 2022 at Rs66 billion, the World Bank is financing the project with a $288 million loan. ECNEC has mandated photographic documentation and GPS coordinates of post-flood damages to ensure transparency in fund utilisation. The SFERP initially provided financial aid to over 2.2 million displaced households through cash-for-work programmes, labour kits, and grants for infrastructure rehabilitation. The cost revision is largely due to an increase in the road component, which rose from Rs22 billion to Rs37 billion. ECNEC also approved an additional Sindh Flood Irrigation project, valued at Rs33 billion. Rawalpindi Ring Road Project The cost of the Rawalpindi Ring Road (R3) project has increased by 40% to Rs33 billion. Originally approved in December 2021 at Rs23.6 billion, the revised project includes a 38.3-kilometer, six-lane access-controlled expressway. The Housing, Urban Development, and Public Health Engineering (HUD & PHED) Department of Punjab had increased administrative approval to Rs27 billion in February 2022, without altering the project scope. However, the latest revised PC-I shows costs rising further due to design modifications. The number of culverts has increased from 33 to 49, underpasses from 4 to 10, and bridges and flyovers from 19 to 26, exposing poor planning in the original 2021 approval. Railway expansion and road rehabilitation The government approved a revised PC-I for procuring 820 railway bogie wagons and 230 passenger coaches, increasing the project cost by 129% from Rs31 billion to Rs71 billion. The completion timeline is set for June 2027. Additionally, ECNEC approved the Multan-Vehari Road project at a cost of Rs12.9 billion, which involves rehabilitating 93.5 kilometres of road to standard carriageway specifications. Green line bus rapid transit system The Rs13.5 billion Green Line Bus Rapid Transit System (BRT) project was also discussed. ECNEC granted administrative approval to facilitate Sindh Infrastructure Development Company in clearing liabilities before transferring operations to the Sindh government. However, the issue of increasing Green Line fares remains unresolved and has been left to the Sindh government's discretion. Public-private partnerships, additional approvals ECNEC sanctioned Rs28 billion for enhancing Public-Private Partnerships. The Sindh government has been directed to complete all project activities by June next year to avoid further commitment charges on unused Asian Development Bank (ADB) loans.
