ISLAMABAD: Instead of spending only Rs10 billion on the expansion of Islamabad Expressway from Koral to GT Road, the federal government is mulling executing the project against a whopping Rs45bn through a public-private partnership.

For this purpose, the government is likely to lease out the precious portion of right of way of the highway to a private party. However, a final decision has not been made yet.

A document of the Ministry of Interior (available with Dawn) showed that the expansion of Islamabad Expressway worth Rs45 billion would be discussed for the proposed Public Sector Development Programme Plus. The document dated December 19 stated: “Government land may be leased in lieu of viability gap funding.”

The highway expansion project’s last portion from Koral to GT Road is pending while work from Faisal Avenue to Koral Interchange was completed a couple of years ago.

Official sources said the government step to place the project in PSDP plus for public-private partnership raised questions marks.

Instead of Rs10 billion, expansion of Islamabad Highway from Koral to GT Road under public-private partnership will cost Rs45bn, say officials

The sources said if the project was executed through the public-private partnership, the Capital Development Authority (CDA)’s precious land along the road was likely to be leased out unnecessarily.

“We fail to understand why for a project worth Rs10bn the easing out of a prime land is being proposed,” said an official of the CDA land directorate. He said it was a federal government project and should be funded through PSDP.

“In case the government does not want to fund the project, it should direct the CDA to auction just two commercial plots to generate funds for it,” the official said.

The expressway is a five-lane road but it suddenly transforms into two lanes near Koral, making it difficult for drivers to adjust and creating a gridlock at Korang bridge. Because of the higher volume of traffic and the axle-load of slow moving trucks, this portion of the highway is riddled with pavement distress and pavement failure, including heavy settlements, ruts and corrugation development, which have made the road unserviceable.

During the tenure of the PML-N government, the CDA expanded the road from Zero Point to Koral besides constructing four interchanges at Koral, Khana, Sohan/Iqbal Town and Shakarparian/H-8.

For the portion from Koral to GT Road in Rawat, the CDA had requested the federal government for provision of funds and the PML-N government in its last budget earmarked over Rs7bn for it but without approval of the PC-I. Later, the PTI government did not allocate funds for all projects whose PC-I were not approved, including the highway project.

For the fiscal year 2019-20, however, the federal government allocated Rs450 million for the project which are yet to be released to the CDA.

On the other hand, after facing criticism from the public the CDA decided to ease out congestion by constructing the PWD underpass and Korang bridge from its own funds.

For this, the CDA sought government’s permission which has not been given yet.

“The project is facing inordinate delay but we can’t do anything until we get a response from the federal government. Sometimes the government says the project should be started through public-private partnership and sometimes it asks us to explore opportunities for the build, operate and transfer (BOT) model. Simply, there is lots of confusion,” said an engineer of the CDA.

When contacted, Special Assistant to Prime Minister on CDA Affairs Ali Nawaz Awan said since approval of Executive Committee of the National Economic Council (Ecnec) was required to start the project it will be taken up by Ecnec at its meeting slated to be held on March 16.

He said focus would be paid on starting work on the Korang bridge and PWD interchange after which the remaining portion of the highway would be expanded.

Asked about the federal government’s proposal of leasing out the state land, he said: “After construction of the PWD underpass and Korang bridge the estimated cost of the project will reduce so there is no need of leasing out the land.”

He said setting up a toll plaza could be a viable solution to generate funds. About the official document proposing the public-private model and leasing out of the land, he said: “I have already said we will go for the toll plaza option instead.”

Published in Dawn, March 9th, 2020