The Frontier Works Organization (FWO) Chief Operating Officer CORE project M-9 Karachi-Hyderabad Motorway Brigadier Tahir Siddiqui has said that the organization is the pioneer in BOT services a newest regime was introduced in Pakistan by FWO with purpose to reduce the burden on the public sector for development of large size infrastructural projects.
He said FWO takes the pride of being the pioneer of implementing BOT projects in Pakistan in collaboration with NHA, so that Karachi-Hyderabad motorway (M 9) is one of the BOT project achieved through competitive bidding process.
On the occasion COO GS Col. Mansoor Ahsen, Project Director M-9 Col. Rashid, Director BOT Daud Suleman and PRO Abdullah Hafeez were among the representatives of FWO briefed media during visit at NooriAbad location.
Bgdr. Tahir said that NHA has given rights of its development and subsequent operation and regulator maintenance for 25 years under a Concession Agreement to FWO owned private limited company ‘SCORE’, which is lawfully registered in SECP observing all corporate governance regulations.
He said overall construction cost of the project is Rs 37Billion with details of its financing arrangement, underlying the fact that FWO injects 30% as equity share while 70% is loaned from a consortium of local banks, which will be returned through toll revenue, This needs to be understood that the toll being collected during construction is being utilized for the construction and partially for debt servicing only.
He further said not only had this for first 10 years major chunk of toll will be used for debt repayment and remaining will be used for operation, maintenance & management cost.