ISLAMABAD - The federal government has announced Rs41.67 billion as Viability Gap Funding (VGF) for six mega road projects in PSDP 2021-22 to make them lucrative and feasible for the private investors. 

These six projects are being implemented on Build Operate and Transfer (BOT) mode under public private partnership. The land for these projects would be provided by National Highway Authority (NHA) while successful contractors would build the road with own resources and in return collect toll tax from the road under certain terms and conditions for an agreed term to recover cost and profits. 

However, some of the projects will need funding from the government to make these projects viable for private investors whereas the government wants healthy competition and early completion of these projects by offering VGF. 

The projects for which the VGF is committed include Rs8 billion for 119km long construction of additional carriageway and rehabilitation of existing carriageway from Balkasar (M-2) to Mianwali, Rs4 billion for 115km long construction of Kharian–Rawalpindi Motorway, Rs10 billion for dualisation & rehabilitation of Karachi-Quetta-Chaman Road, Rs4.5 billion for dualisation & rehabilitation of Mianwali–Muzaffargarh Road, Rs7.16 billion for Hyderabad–Sukkur Motorway (M-6) and Rs8 billion for 69km long Sialkot (Sambrial)–Kharian Motorway. 

It is pertinent to mention here that one of these projects Sialkot (Sambrial)–Kharian Motorway (69km) has already been cleared for construction by Frontier Works Organisation (FWO) by NHA board last week. 

In addition to these BOT projects, the PSDP indicates an allocation of Rs14.3 billion to start 15 new road projects. Out of these 15 projects, the major allocations include Rs2 billion for construction of Gilgit-Shandur Road, Rs1.5 billion for the construction of Hoshab–Awaran–Khuzdar Section of M-8 Section-2 Awaran–Naal (SB), Rs3 billion for dualisation of Khuzdar-Kuchlak section of National Highway (N-25) and Rs2 billion for improvement and widening of Chitral-Booni-Mastuj-Shandur (CPEC). 

Meanwhile, NHA has also got an allocation of Rs99.38 billion for its 46 ongoing road projects that are being implemented across the country.