CDWP clears two development projects worth Rs196bn

During a meeting, chaired by Deputy Chairman of Planning Commission Muhammad Jehanzeb Khan, approved Rs5bn in the health sector for Balochistan and recommended the Rs191.47bn Hyderabad-Sukkur Motor­way project the Executive Committee of the National Economic Council (Ecnec) with a higher financial share

Projects costing no more than Rs10bn can be approved by CDWP while projects of higher estimated costs are approved by Ecnec once the CDWP clears them under the current financial powers.

CDWP also approved a health related project namely “Strengthen­ing of Existing DHQs, and selected THQs, RHCs, BHUs in District Awaran, Washuk, Khuzdar, Lesbela , Panjgur, Gwadar and Kech” at a cost of Rs4.997bn. Only two projects related to health and transport & communications were presented during Monday’s meeting.

The project aims to strengthen seven districts, which are known as less developed areas of South Balochistan, through provision of civil infrastructure, medical equipment, machinery and ambulances.

A project concerned with Transport & Communication presented to the CDWP was “Construction of Hyder­abad–Sukkur (306 km), 6-Lane Divided Fenced Motorway on BOT basis” worth Rs191.471bn.

The project was discussed in the last CDWP on April 12, but was deferred pending its clearance from the board of directors of the Public Private Partnership Authority, now called P3A. The Chief Executive Officer (CEO) of the P3A Ahmad Khan was ordered to also present a Viability Gap Funding (VGF) financing.

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However, to make the Hyderabad-Sukkur motorway project financially viable and attractive for private parties, PPPA board has approved a provision of Rs92 billion from the budget and through toll charges.

The P3A presented the financial model approved by its board before the CDWP on Monday.

The CDWP recommended the financial model for consideration of Ecnec which said that the project would be executed on a BOT — user-charge basis with the provision of capital and operational Viability Gap Funding (VGF) to improve the financial viability and bankability of the project.