The government intends to inject Rs92 billion in road projects as the Public Private Partnership Authority (PPPA) board has approved the budget.
It aimed that through the toll-charges the Hyderabad-Sukkur motorway project proved to be financially viable and attractive for private parties.
The PPPA meeting was chaired by Minister for Planning and Development Asad Umar.
Minister said that the PPPA has approved the viability gap fund and transaction structure for the Hyderabad-Sukkur motorway project.
The new financing structure states that the cost of the project could jump from the originally approved Rs165 billion a year ago to Rs201 billion.
This motorway project proved to be the biggest project in Sindh development project announced by PM Imran Khan.
The board approved the construction of motorway project on build, operate and transfer (BOT) model with both capital and operational viability gap funding (VGF) totaling Rs92 billion.
The minister said that government contribution increased from Rs1.1 billion due to a change in the financing structure as the earlier option was carrying uncertainty for the contractors.
The earlier model was that the revenue of the Multan-Sukkur motorway would be provided for 10 years to the contractors of the Hyderabad-Sukkur motorway to make it financially viable.