Signing of Concession Agreement between Sindh government and FWO for construction of Karachi-Thatta dual carriageway

The Sindh government and Frontier Works Organisation (FWO) have signed a concession agreement for constructing a Karachi to Thatta dual carriageway, which would cost around Rs 9.9 billion, under the public private partnership (PPP) mode of investment.
Sindh Chief Minister Syed Qaim Ali Shah, Sindh Minister for Finance Syed Murad Ali Shah, Sindh Minister for Information and Local Government Sharjeel Inam Memon, Director General FWO Muhammad Afzal Khan, Director Plans FWO Brigadier Sultan, Additional Chief Secretary P&D Muhammad Waseem, Secretary Finance Sohail Rajput, officers from Provincial Works and Services, Finance Department, Board of Investment attended and witnessed the signing ceremony, while Sindh Government's Chief Engineer Works and Services Syed Pervaiz Ali Shah and Director Plans FWO Brigadier Sultan signed agreement on behalf of their organisations.
This 49-kilometre-long motorway will be constructed from Ghaggar Phattak to Thatta bypass in a year’s time. The total cost includes Rs7.499 billion as construction cost and Rs2.460 billion as the project development cost. As per the financial structure, 70 percent of the project cost, amounting to Rs6.971 billion, would be arranged through commercial loans, while the remaining Rs2.987 billion will be contributed through equity by both partners.
Addressing the ceremony, Chief Minister Qaim Ali Shah said that Karachi-Thatta dual carriageway was the most important project, which was to be linked with Thatta to Mithi road onwards to Islamkot and Thar coalfield areas, covering over total road length of 296 Km.
He said that this road would be known in future as the road towards prosperity.
“It was also important that the Sindh government had signed the agreement with the FWO which is a technically sound organisation.” Qaim stressed that by virtue of engaging FWO as the partner, the road project could be completed in one-and-half years or before’ adding, “The carriageway would open new avenues of income, employment, trade and investment opportunities in the area through creation of infrastructure for social development.”
Director General FWO Muhammad Afzal Khan while addressing the ceremony said Karachi-Thatta dual road would be completed in a year after starting the work on ground. He said financial close for the project was expected by the end of the July 2015, and after that very soon "we expect to arrange ground breaking ceremony of this project." He said FWO shall design, finance, build, operate and transfer the project and it was also required to operate and maintain the dual carriage way throughout the life of concession period of 25 years.