Revised PC-1 For Malakand Tunnel Project: NHA Recommends
Executive Board of The National Highway Authority’s (NHA) has recommended 2nd revised PC-1 for Malakand Tunnel project at a cost of Rs23.565 billion against the original PC-1 of Rs9.043 billion, it is learnt.
The Executive Board has also cleared concept paper regarding implementation of 5-year action plan for technical cooperation on highway engineering between China and Pakistan according to sources.
Sources also said that an updated PC-I for construction of Malakand Tunnel project was presented. The NHA Executive Board recommended the 2nd Revised PC-I for design, tendering assistance and construction of Malakand Tunnel project at a cost of Rs23.565 billion having an Economic Internal Rate of Return (EIRR) of 8.25% for approval of Executive Committee of National Economic Council (ECNEC).
The Board directed for performing 3rd party review/validation of 2nd revised PC-I for design, tendering assistance and construction of Malakand Tunnel project, sources maintained.
The original PC-1 amounting to Rs9.043 billion as a phase-1 for construction of single tube tunnel had been approved by the ECNEC on 26-05-2011 and the agreement with Korean Exim Bank had been signed for US$78 million (Rs7.44 billion) in December 2012.
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M/s Yooshin Engineering Corporation in association with M/s Dongsung Engineering Corporation of Korea submitted detailed design of the project in January 2017 to the NHA. The Korean consultant on the basis of traffic estimates recommended that two tubes tunnel would be required at Malakand Pass.
Based on two tubes concept, the revised PC-I of the project at a cost of Rs16.544 billion including FED at estimated cost of Rs14.11 billion was approved by ECNEC on November 24, 2017.
Due to additional tube, the cost of Malakand Tunnel project increased from US$78 million to US$163 million and the project had required additional funds of US$85 million.
The previous government had decided to approach Korean government with the request of additional financing of US$85 million for Malakand Tunnel project, as its cost increased from US$78 million to US$163 million.
Ministry of Communications conducted a meeting on 25th January, 2018 to explore the way forward for financing of the project. During the meeting it was decided that Ministry of Communications would approach Korean Ambassador with the request of additional financing for the project. Detailed design of Malakand Tunnel project is complete. Construction period is 42 months. The government has earmarked Rs100 million in PSDP 2019-20 for Malakand Tunnel project.
The NHA Executive Board cleared the concept paper regarding implementation of 5 year action plan for technical cooperation on highway engineering between China and Pakistan and recommended it to Concept Clearance Committee of the Planning Commission, Ministry of Planning, Development & Reforms, for formal approval, prior to launching request for grant/aid with the embassy of China.
The NHA Executive Board also recommended the updated PC-I for construction of 2-lane bridge over River Indus at Ghazi Ghat project at a cost of Rs1.987 billion having an Economic Internal Rate of Return (EIRR) of 14.11 percent for approval of CDWP subject to third party review/validation of the PC-I. The Board directed that the breach sections be provided in approach roads along with capillary breaking layer in view of site situation. The Board further directed that the scoured depth and geological survey of the project be performed before execution.