ISLAMABAD (special crosspondent) – The federal government has in principle decided to award the Rs205 billion Kharian–Rawalpindi Motorway (M-13) project to the Frontier Works Organisation (FWO) through a negotiated process, bypassing competitive bidding in an effort to accelerate the launch and completion of this strategically important motorway. The decision was taken during a meeting of the Board of Directors of the Public Private Partnership Authority (P3A), chaired virtually by the Prime Minister’s Adviser on Privatisation, Muhammad Ali, according to a report published by Dawn. The National Highway Authority (NHA) presented the proposal, arguing that a negotiated process would save time and allow construction to commence without delay.

Project Details and Benefits

The 117-kilometre motorway is set to become a vital component of the Lahore–Rawalpindi motorway corridor. It is anticipated to significantly reduce the travel distance between Lahore and Rawalpindi by approximately 100 kilometres. Furthermore, it is expected to cut down travel time by over an hour when compared to the existing M-2 Motorway, offering a more efficient transportation link. This development aligns with broader infrastructure goals, potentially impacting economic activity and connectivity, similar to how other major infrastructure projects have been discussed in relation to regional cooperation.

Rationale for Negotiated Procurement

Officials indicated that the NHA recommended awarding the contract to FWO due to the organisation’s prior successful completion of the adjoining Lahore–Sialkot and Sialkot–Kharian motorway sections. This prior experience is seen as crucial for enabling FWO to mobilise quickly and ensure faster project execution. The government has cited specific provisions within the Public Private Partnership Authority Act, 2017, which permit negotiated procurement under particular circumstances, highlighting the legal framework supporting this approach.

Final Approval and Project Evolution

The proposal will now proceed to the federal cabinet for its final approval. Earlier this year, the Executive Committee of the National Economic Council (ECNEC) had sanctioned the project with an estimated cost of Rs203.32 billion and stipulated that it should be procured through international competitive bidding. However, the government’s current preference for a negotiated approach underscores its aim to fast-track the project’s commencement and completion. The project’s estimated cost has seen a substantial increase, more than doubling from the Rs96 billion initially approved in 2022. This escalation is attributed to its upgrade from a four-lane to a six-lane motorway, a decision influenced by the Special Investment Facilitation Council (SIFC). The motorway will be developed under the Build-Operate-Transfer (BOT) model, with the federal government expected to cover a financing gap surpassing Rs40 billion. The government’s focus on infrastructure development aims to foster economic growth, potentially drawing parallels with discussions on maritime cooperation and investment.