Rs 307 Billion Sukkur-Hyderabad Motorway Construction Delayed

Web DeskJanuary 1, 2024
Rs 307 Billion Sukkur-Hyderabad Motorway Construction Delayed
NHA Terminates Concession Agreement for Sukkur-Hyderabad Motorway Project

The National Highway Authority (NHA) has made a decisive move by terminating its concession agreement with M/s Techno-CMC (TECMC) private limited for the Sukkur-Hyderabad Motorway (M-6) project—a monumental Public-Private Partnership (PPP) venture in the country.

Key Figures:

  • Project Value: Rs. 307 billion
  • Span: 306 kilometers with six lanes
  • PPP Agreement Duration: 25 years

The termination came due to the concessionaire’s failure to achieve financial closure within the specified timeline, leading to significant implications for the project’s progress.

Read more:Punjab Enforces Ban on Vehicles Without Fitness Certificates on Motorways

The NHA had entered into an agreement with M/s TECMC (Private) Limited on December 2, 2022, outlining the development of the Hyderabad — Sukkur Motorway (M-6) on a build-operate-transfer basis. The concessionaire was mandated to secure financial closure within six months from the Effective Date, extended later to September 30, 2023, as a goodwill gesture.

Despite extensions and opportunities provided to rectify the breaches and meet the financial closure deadline, the concessionaire fell short of compliance, prompting the NHA to terminate the PPP Agreement.

Initially hailed as a milestone in the realm of Public-Private Partnerships, the project, designed to encompass 306 kilometers and boasting six lanes, faced a setback due to this unforeseen development. Additionally, the motorway was envisioned to be climate-resilient and operated by the private entity for 25 years upon the execution of the PPP Agreement.

However, this termination casts a shadow over the project’s timeline and prospects. The indefinite delay arises from financial constraints and economic challenges, ultimately stalling the significant infrastructure initiative in the country.

The termination of this agreement, attributed to non-compliance with financial closure terms, brings a temporary halt to the pivotal Sukkur-Hyderabad Motorway project—a development with profound implications for the nation’s infrastructure landscape.

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