ISLAMABAD: The board of directors of the Public-Private Partnership Authority (P3A) on Thursday approved the appointment of the International Finance Corporation (IFC) as transaction adviser for major infrastructure projects, including the development of Islamabad and the construction of two major motorways in Punjab.

The meeting, chaired by Planning Minister Ahsan Iqbal, approved several high-impact initiatives under the public-private partnership framework, aimed at accelerating national infrastructure development.

Informed sources said the IFC — the World Bank’s commercial arm — would be hired by the Capital Development Authority (CDA) as transaction adviser for bulk water management and metering, energy efficiency, wastewater treatment and sewage projects.

The P3A’s board also granted an in-principle approval, subject to concurrence from the Finance Division, for the revised commercial structure of the 69-kilometre Sialkot-Kharian Motorway project.

P3A appoints IFC as adviser for Islamabad development, M-12, M-13 motorways

The project, which has been upgraded to a six-lane facility based on directions from the Special Investment Facilitation Council (SIFC), is positioned to connect Sialkot with central Punjab via the M-12 corridor and is expected to significantly enhance industrial connectivity and mobility in the region.

The cost of the Sialkot-Kharian Motorway project has been estimated at Rs79 billion, with a viability gap financing of Rs21bn to be provided by the government to make the project bankable for private sector participation, given the relatively limited scope of traffic.

The board also approved the project proposal for the Kharian-Rawalpindi Motorway. The project spans 117.6km and will be developed as a six-lane greenfield motorway under a build-operate-transfer model.

With an estimated cost of Rs202.61bn and proposed viability gap funding of Rs40bn, the project will be procured through international competitive bidding.

The planning minister emphasised the importance of utilising private sector investment, innovation, and management skills to overcome financial constraints, accelerate project completion, and improve efficiency in delivering essential infrastructure and services, given the resource constraints in the public sector.

“Public-private partnerships are a cornerstone of our infrastructure development strategy. By leveraging private capital and expertise, we are not only accelerating the delivery of critical national projects but also ensuring long-term sustainability, transparency and value for money for the public,” Mr Iqbal was quoted as saying during the meeting.

Published in Dawn, July 4th, 2025