FWO signs concession agreement for Karachi-Thatta dual carriageway project

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
FWO signs concession agreement for Karachi-Thatta dual carriageway project

The Works & Services Department, Government of Sindh (Pakistan), and Frontier Works Organisation (FWO) have signed a concession agreement for constructing the National Highway (N-5) expressway between Karachi - Thatta in PPP mode.

The project involves construction of a 49.5 km two-lane dual road between Gaghar Phatak through the National Highway to the start of the Thatta bypass/toll plaza. This includes construction of an additional carriageway with a median width of 7.9 m between existing carriageways along with improvement and rehabilitation of existing highway with new bridges and culverts.

The project will be developed on a design, build, finance, operation and maintenance (DBFOM) basis. The contract term is 27 years including 2 years of design and construction.

The total cost includes Rs7.499 billion (US$73.3 million) for construction and Rs2.460 billion (US$24 million) for project development. As for the financial structure, 70% of the project cost will be arranged through commercial loans;  the government of Sindh will inject the minority equity of 14% and developers equity will be 16%.

Chief Minister of Sindh, Qaim Ali Shah, said that the Karachi-Thatta dual carriageway was the most important project linking the Thatta - Mithi road to the Islamkot and Thar coalfield areas, covering a total road length of 296 km.

FWO Director General, Muhammad Afzal Khan, added that the Karachi-Thatta dual road would be completed in a year once work starts on the ground. He said financial close for the project was expected by the end July 2015.

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.