The Economic Coordination Committee (ECC) of the Cabinet has accorded approval for issuance of government guarantee amounting to Rs. 9,500 million for the construction of Hyderabad-Sukkur Motorway on a build-operate-transfer basis.

The ECC, in its meeting held on Monday, considered and approved a summary of the Ministry of Communications in this regard.

The project will be carried out on a Public-Private Partnership (PPP) model between National Highway Authority (NHA) and TECMC.

The PPP Agreement stipulates that NHA shall establish and deliver to the concessionaire the Government of Pakistan (GOP) guarantee prior to the financial close to the tune of Rs. 9,500 million back by sovereign guarantee and acceptable to the financiers.

The ministry requested the CC to accord approval for the issuance of a GOP guarantee amounting to Rs. 9.5 billion to be issued by the Ministry of Finance for the comfort of commercial lenders of the project, so that the concessionaire may achieve financial close on time.

The proposal was also supported by the Finance Division and the Planning Ministry and was placed before the ECC of the Federal Cabinet.

Source: Pro Pakistani