National highway development in Pakistan through Public-Private Partnership

On 23 April 2014, a Public-Private Partnership contract was signed by Pakistan’s National Highway Authority (NHA) for the reconstruction of the Habibabad Flyover and the modernization of the Lahore-Islamabad Motorway (M-2).

Under the agreement between NHA and Frontier Works Organization (FWO), a new bridge will be constructed to replace existing Habibabad flyover which is in dilapidated condition. Similarly, the Lahore-Islamabad Motorway (M-2) which is part of Asian Highway (A1) will be renovated to meet international standards and an electronic toll system will be installed.

Lahore-Islamabad Motorway (M-2) is the first large scale PPP project of NHA with estimated cost of US$466 million (46,000 million rupees). Other mega project like the M-9 Karachi-Haiderabad Motorway (21,000 million rupees or approximately US$213 million) will be launched in the near future (the M-9 Karachi-Haiderabad project was actually awarded to a Malaysian company in 2012 but the project could not be finalized successfully).

(Source: National Highway Authority of Pakistan and Infrastructure Project Development Facility ).

Pakistan has been promoting private participation in infrastructure with the objective of providing better public services. A national policy on PPP was approved in 2010 and the Infrastructure Project Development Facility (IPDF) was established already in 2006 to promote and facilitate PPP projects. Pakistan has also been working on a Federal PPP Law.

More information is available in the presentation made on Pakistan at the ESCAP High-level Expert Group Meeting on Infrastructure Public-Private Partnerships for Sustainable Development organized by ESCAP in November 2012.