Karachi, December 29, 2015 (PPI-OT): Sindh Chief Minister Syed Qaim Ali Shah has said that Thatta-Karachi Dual way Carriage would be mile stone in the development of the province. “I am committed with my people and leadership to develop Sindh and create congenial atmosphere for investment in industrial sector, particularly in Thar coal filed. This he said while addressing signing ceremony of financing agreement Thatta – Karachi Dual Carriageway Project today at the CM House. The ceremony was attended by provincial ministers, secretaries, representatives of FWO, Dubai Islamic Bank and other concerned.
He said that building infrastructure and commitment of providing better road network, the Works and Services Department in association with Sindh Public Private Partnership Unit is going to launch Karachi- Thatta Dual Carriageway Project. “The project is most important artery in the Province from Karachi to Thatta. The larger economic benefit of this Project is linked with connecting this corridor from Thatta towards Thar for Thar coal filed,” he added.
The chief minister said the improved access envisaged would serve thousands of commuters living along the Karachi Thatta route and those who are already using this facility up to Thatta and/or beyond. “It is also expected that the improved facility would help open up these areas from creation of soft infrastructure such as better services for schools and health centres as these areas would become easy to reach through this project.” he said.
Senior Minister for Finance Syed Murad Ali Shah said that the importance of the project is also highlighted with its connection with the Thar Coal Field Area. He said that after a fair and transparent bidding process, Sindh government has joined hands with the Frontier Works Organization (the pioneers of infrastructure development in Pakistan) under Public Private Partnership mode to dualize the existing National Highway N-5 starting from Gaggar Phatak to Thatta Bypass having total length of 49km.
Giving details of the project, Syed Murad Shah said that cost of the project is Rs1.35 billion. As per the financial structure of the project 70% of the cost (Rs 6,199 million) would be arranged through Commercial loan and the remaining 30% amount of Rs 2,657 million would be contributed through equity. Furthermore, 53.3% of the equity or Rs 1,417 million would be contributed by the Frontier Works Organization (FWO), where the remaining 46.7% or Rs 1,240 million would be given by Sindh government.
It may be recalled that the Concession Agreement for the project was signed on May 7, 2015 between the Works and Services Department and the Frontier Works Organization in the presence of the Chief Minister. The Financial close for the project is achieved today and finance agreements signing ceremony.
The 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 (2) years, and is also required to operate and maintain the dual carriageway through the life of Concession period i.e. 25 years. The Director General of FWO, Major General Mohammad Afzal addressing the ceremony said that it was an honour for him that his organization was going to contribute in the development of Sindh.
For more information, contact:
Mr. Allah Bachayo Memon
Chief Minister House
Cell: +92-300-3524057 (Ext: 336)