HYDERABAD: The National Highway Authority (NHA) is said to have engaged different firms, including those based in the United Arab Emirates (UAE) and China, in talks on executing the 306km Sukkur-Hyderabad motorway (M6) project the contract of which was cancelled by the caretaker government last month.
The contract was cancelled when, according to some NHA officials’ claim, the Italian-based firm was unable to achieve financial close -- a term used in contracts for arranging finances for the project to be executed by the firm or consortium of firms concerned.
“Yes, NHA is in the process of talking to UAE- and China-based firms for starting the project afresh now and it is very logical. When I say afresh, it means starting process to finalise financial modalities of project,” an official confided to Dawn. He said that a UAE-based firm had shown some interest in the project. “But it is just preliminary stage that talks are under way with Chinese and UAE firms,” he explained.
Another NHA official pointed out that since a new federal government was being formed, the process of a new contract would be expedited.
“The firm based in the UAE is engaged with NHA through the forum of Special Investment Facilitation Council (SIFC) and World Bank has also been separately approached to discuss loan modalities for the project,” said one official, who avoided to speak on the revised cost of the project considering the price escalation factor. He said that WB‘s requirements were to be understood if it came to arranging finances for the project. One official, however, hinted that the overall revised cost might be around Rs700bn.
The M6 project was supposed to be completed within 24 months after its groundbreaking in Dec 2022 by then PM Shehbaz Sharif, who has just taken oath of his office for a new term. However, a mega corruption scam jeopardised the project after embezzlement was reported in Matiari and Naushahro Feroz districts, both left bank districts of the province. The motorway section is to pass through seven districts of Sindh.
“In 80pc cases [of project execution], we have land available with us,” said an official while alluding to the land acquisition issue that was otherwise marred by the Oct 2022 scam. A handsome amount was recovered by Sindh government and now the matter is pending a trial before the Hyderabad Accountability Court.
The land acquisition process was not halted. NHA had transferred Rs15bn for land acquisition to Sindh government.
It may be recalled that the then officials like deputy commissioners of Matiari and Naushahro Feroze were allegedly involved in the land acquisition scam. Naushahro Feroze DC Tashfeen Alam Khan fled abroad while Matiari DC Adnan Rashdi was arrested, besides Saeedabad AC Mansoor Abbasi.
In all, 42 characters were booked in a National Accountability Bureau (NAB) reference. Bail pleas of the prime accused has already been rejected and a couple of others have opted for plea bargain.
Published in Dawn, March 5th, 2024
