Monday, February 26, 2024

Govt Approves Sovereign Guarantee of Rs. 6.94 Billion for Sialkot-Kharian Motorway.

The government would issue a Rs6.944 billion ‘Government Sovereign Guarantee’ through the National Bank of Pakistan (NBP) for the Sialkot (Sambrial)-Kharian Motorway.

In its meeting on March 11, 2021, the Executive Committee of the National Economic Council (ECNEC) approved the project: construction of the Sialkot (Sambrial)-Kharian Motorway on a Build-Operate-Transfer (BoT) basis at a cost of Rs43.383 billion without the Foreign Exchange Component (FEC), including a GoP share of Rs19 billion and a concessionaire share of Rs24.309 billion.

The authorised project was purchased through a competitive bidding process. The selected bidder was a joint venture (JV) of M/s Frontier Works Organization (FWO) and M/s Sultan Mahmood and Co (SMC).

For the project’s implementation, the JV registered M/s Sialkot Kharian Infrastructure Management (Pvt) Limited (SKIMS) as a Special Purpose Vehicle Company (SPVC) with the Securities and Exchange Commission of Pakistan (SECP).

The Public-Private Partnership Authority (P3A) accepted the PPP agreement negotiated between the NHA and M/s SKIMS at its 16th Board meeting on August 27, 2021. On September 13, 2021, NHA and M/s SKIMS signed the approved PPP agreement.

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