BOT becoming popular mode of road construction

Islamabad

National Highway Authority (NHA) has been focusing on Build-Operate-Transfer (BOT) projects to involve private sector in highway building projects as the present government wants to upgrade road infrastructure in the next five to seven years. It is worth mentioning that in the modern concept of infrastructure development, Public Private Partnership (PPP) has become popular mode of road construction in Pakistan.
BOT is a project financing and operating model or structure wherein a private entity receives a concession from the private or public sector to finance, design, construct, and operate a facility stated in the concession contract which varies from 20 to 30 years. “The government wants to double the road density till 2025 and achieving this mammoth development goal can only be done with the support of private sector”,Chairman NHA told APP.
He further said that publicprivate partnership is becoming an essential component of NHA development strategy. The objectives set by NHA, he said, included development,off-budget financing,efficiency,investment, sustainability and revenues generation. Re-carpeting and renovation work of Islamabad-Lahore Motorway (M2) completed recently is one of the big achievements of NHA on BOT basis. He went on to say that the project cost Rs30.935 billion, which included renovation of toll plazas,weigh stations, workshops, as well.
Renovation and overlay work on the M-2 had started in January last year by MORE (FWO, the build-operate-transfer (BOT) concessionaire of the project.—APP

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