PPPA has authorised the viability gap fund and transaction structure for the Hyderabad-Sukkur motorway project, said Umar. Three options had been presented to the board, which picked the one that had least burden on the budget, but would increase the overall project cost. The board approved the construction of motorway project on build, operate and transfer (BOT) model with both capital and operational viability gap funding (VGF) totalling Rs92 billion. To a question, Umar said that project cost would be decided by the CDWP and the PPPA board had only approved the VGF. The project is aimed at constructing a 306km road on build, operate and transfer basis under the public-private partnership model.

Source: The Express Tribune April 22, 2021 03:33 UTC