KP govt invites foreign investors for construction of Peshawar-DI Khan Motorway

ISLAMABAD: The Khyber Pakhtunkhwa provincial government is looking for foreign investors for the construction of the 360-kilometre long Peshawar-Dera Ismail Khan Motorway.
“The proposed motorway will pass through seven districts of KP province, benefiting over 6 million residents of these districts as well as millions of others,” Shahab Ali Shah, KP Additional Chief Secretary, told WealthPK.
Shahab informed that the total cost of the project is estimated as $1.562 billion, while construction period would be four years.
“The provincial government will provide 30% of the total cost, while investors will have to bear the remaining 70%,” the official said.
Shahab said that Chinese and South Korean companies already have experience of building motorways and roads in Pakistan.
“Investors and companies from China and South Korea will be our priority for executing the proposed project,” he maintained.
The project is proposed to be implemented in Build, Operate and Transfer (BOT) structure, Shahab said, adding that the KP government is offering a 25 years concession period for investors.
“Toll collection rights and maintenance of the project during the concession period will come under the responsibility of investors,” the official explained.
Shahab said the provincial government would facilitate the investors for acquisition of land for roads and right of way. A detailed technical, financial and commercial feasibility report has already been completed, the official informed.
“The report covers detailed motorway alignment, pavement design, geo-technical investigations, hydrological studies, preliminary design of tunnels, and environmental impact assessment,” Shahab added.
A detailed traffic study has also been completed to conduct travel demand forecasts for the proposed motorway, he said.
According to an official report of the proposed project, a copy of which is available with WealthPK, Peshawar-DI Khan Motorway would be 360 kilometres long. The project is to be undertaken under the Public Private Partnership (PPP) mode.
The proposed motorway will pass through Peshawar, DI Khan, Kohat, Hangu, Karak, Bannu and Lakki Marwat districts of KP province.
According to the report, the KP government was willing to support the project and may provide a viability gap funding (VGF) support in order to make the project bankable.
The provincial government foresees the project to become an international trade corridor as part of the China Pakistan Economic Corridor (CPEC) western route, providing direct access to Afghanistan and Central Asian States, the report said.
“The project will also provide transit trade route through Khyber Pass, Ghulam Khan and Angoor Adda — three crossing points at Pakistan-Afghanistan’s border,” said the report.
According to the report, the project would also open new and shorter corridor towards the port cities of Gwadar and Karachi through N-50 and N-85 highways, reducing vehicle operating costs and travel time.
The KP government is also optimistic that the proposed motorway would provide access points to untapped tourism spots in the western districts of the province.
The Peshawar-DI Khan Motorway will be constructed as six lanes motorway, designed for the speed of 120 km/hour. There would be 19 interchanges and 110 bridges on the motorway.
A separate 54 kilometres service road and 20.6 kilometres link road would also be constructed. Two tunnels would also be constructed –1.42 kilometres long tunnel in Banda Daud Shah and 5.6-metre tunnel in Darra Adamkhel. Both tunnels will have two lanes in each direction.
According to the report, the maintenance cost is estimated around $1,430 per two lanes/km. The private sector will be responsible for arrangement of debt and investment.
The motorway will connect Hakla (Islamabad)-Yarik Motorway, filling the missing link towards DI Khan-Zhob-Quetta Road.