June 10, 2021
NHA likely to award Sialkot-Kharian Motorway contract to FWO, SMC

NHA likely To Award Sialkot-Kharian Motorway Contract to FWO, SMC

The National Highways Authority (NHA) awarded the 69-kilometer Sialkot-Kharian Motorway (M-12) project to a collaboration of Frontier Works Organization (FWO) and SMC Private Limited on Tuesday.


The NHA executive board will meet on Tuesday to make a final decision, following which the contractor will be granted a Letter of Intent (LOI). The NHA has received three bids from construction companies for the Sialkot-Kharian Motorway, which will be constructed under a Public-Private-Partnership framework.


The bids had been submitted as a joint venture of Frontier Works Organization (FWO) and SMC Private Limited and a joint venture of Matracon Pakistan Private Limited and Techno Private Limited while the Zahir Khan and Brothers (ZKB) Private Limited had also submitted its proposal.


The technical review was completed in the first step, and all three competitors were found to be technically suitable for the project. However, the aforementioned businesses’ financial bids were being evaluated in order to make a final decision.


Asad Umar, the Federal Minister for Planning, Development, and Special Initiatives presided over the 12th meeting of the Public-Private Partnership Authority (PPPA) Board of Directors in Islamabad on Monday.


The transaction structure provided by the winning proponent and authorized by the NHA was in conformity with the structure previously approved by the board, and the Viability Gap Funding (VGF) was within the limitations originally allowed, according to the MoC/NHA.


The proposed transaction structure was approved by the board, subject to codal requirements. The NHA will now begin negotiations with the preferred consortium of M/S FWO-SMC in order to finalize the project’s Concession Agreement. However, the NHA Executive Board will make the ultimate decision to award the contract today, and the project will most likely be granted to M/S FWO and SMC.


The total length of the project is 69km including 60km main motorway, 9km link expressway. The said motorway will start from Sambrial Interchange, an endpoint of Lahore-Sialkot Motorway, and terminate at Kharian on N-5 (GT Road).


The Sialkot-Kharian Motorway passes through significantly populated areas of Gujrat, including Jalalpur Jattan, Peru Shah, Daulat Nagar, and Gulyana, and terminates near Kotli Bajar, where it will be connected to the G.T. Road through a link highway with a grade-separated interchange.


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