ISLAMABAD - The National Highway Authority (NHA) has declared Techno-Matracon as successful bidder for the construction of Kharian-Rawalpindi Motorway — a third and final part of the Lahore-Rawalpindi Motorway.

The road authority has issued a Letter of Intent (LOI) to the highest ranked bidder for the project, which is being executed under Public Private Partnership Mode on Build-Operate-Transfer basis.

A total to three bidders were in the run to get the project including Frontier Works Organisation (FWO)- ZEERUK, ZKB-SMC-SMADB- KASIB and Techno-Matracon - PowerChina Chengdu-Acc.

Earlier, all the bidders were declared successful in the technical evaluation and now after the financial evaluation the Techno-Matracon - PowerChina Chengdu-Acc has been declared as highest ranked bidder.

According to the financial model of the successful bidder, the total cost of the project will be Rs85.6 billion out of which it has demanded Rs6 billion as Capital Viability Gap Funding (VGF) during the construction period. The contractor has also demanded Rs10.2bn as operation VGF during the first seven years of the project.

Meanwhile, the contractor would give about Rs112 billion to the National Highway Authority as its revenue share in next 25 years and will recover its investment and profits from the toll collection.

A simple comparison of the financial models of all three bidders clearly indicates that the bid of a successful bidder is far better than others as it has offered to build the motorway in half of the money as compared to other contractors.

For instance, the project cost quoted by FWO and others was Rs122.1 billion while ZKB and others offered Rs137.01 billion as project cost.

Meanwhile, the successful contractor has also demanded very low operational VGF funding from NHA as compared to others. The bidder demanded only Rs10.2 billion as VGF while FWO and ZKB demanded Rs110 billion and Rs96 billion respectively.

It is pertinent to mention here that the Techno is a new player in the road infrastructure sector of Pakistan and it had already managed to get a contract to construct the Sukur-Hyderabad Motorway — a last missing link of motorways network between Peshawar and Karachi.

The Kharian to Rawalpindi Motorway will start from Kharian where the under construction Sialkot-Kharian Motorway would end and then it will be terminated at T-Chowk on main G T Road near Rawat in Rawalpindi.

This section of motorway includes 8 interchanges at Sarai Alamgir, Jhelum, Dina, Sohawa, Gujar Khan, Mandra, Banth Moor, Chak Beli and 2 main toll plazas.

Sources privy to the developments informed that NHA earlier wanted to build a 6-lane motorway but for that it will have to pay Rs13.78 billion as compensation for competing route to the operator of existing Lahore-Islamabad Motorway (M-2).

Therefore, the option has been dropped after detailed deliberations and now 4-lanes extendable to 6-lane with required structure motorways would be constructed. The total length of the project is 117.1 kilometres including two tunnels of 1300 and 500 meters and 40km long service road. The project will have 2 service areas and two rest areas on both sides of the motorway and the motorway will have a speed limit of 120 kilometres per hour.

After its completion, the project would provide about 100km short motorway route between Lahore and Islamabad.

The existing Lahore-Islamabad Motorway (M-2) is 375km long but the new route Lahore-Rawalpindi would be around 290km long.

Out of these 290km, a 103km long Lahore-Sialkot Motorway is functional and 70km long Sialkot-Kharian Motorway has already been awarded and the construction is about to start on it while this 117km long Kharian-Rawalpindi Motorway will be started in next six months after the completion of legal and codal formalities.

NHA declares Techno-Matracon successful bidder for construction of Kharian-Rawalpindi Motorway