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Thursday November 21, 2024

Several projects approved in 46th Public-Private Partnership board meeting

By Salis bin Perwaiz
November 02, 2024
Sindh Chief Minister, Syed Murad Ali Shah presides over a 46th PPP Policy Board meeting at CM House in Karachi on November 1, 2024. — PPI
Sindh Chief Minister, Syed Murad Ali Shah presides over a 46th PPP Policy Board meeting at CM House in Karachi on November 1, 2024. — PPI 

Sindh Chief Minister Syed Murad Ali Shah on Friday chaired the 46th meeting of the Public-Private Partnership Policy Board that approved several projects.

The projects approved by the board included a 17-storey NED Science and Technology Park project, installation of West Karachi Water Recycling Project-I to supply water to industrial estates, desalination plant to provide drinking water to Defence Housing Authority and surrounding areas, six-lane Malir Expressway leading to the Kathore Interchange, and the Ghotki-Kandhkot bridge for which Rs2bn was allocated.

The Public-Private Partnership Policy Board met at the CM House. Those who participated in the meeting included provincial ministers Dr Azra Pechuho, Ziaul Hassan Lanjar, Sardar Ali Shah, Ali Hassan Zardari and Jam Ikram Dharejo, Chief Secretary Asif Hyder Shah, MPAs Ghulam Qadir Chandio and Qasim Soomro, Planning & Development Board Chairman Najam Shah, Home Secretary Iqbal Memon, School Education Secretary Zahid Abbasi, Public-Private Partnership Unit Director General Asad Zamin and others.

NED Park

The CM was told that the NED Science and Technology Park was being established through a government-to-government (G2G) arrangement with a Kuwaiti company. He noted that he had already approved Rs1.7 billion as the provincial government’s equity for the project.

It was said that following an aeronautical study, the Civil Aviation Authority issued an NOC for a building height of 218.3 feet above ground level in October 2024.

The CM confirmed that any overhead water tank, neon signboard, antenna, or other rooftop structures would not affect aircraft safety. He instructed the unit to finalise the concession agreement by the end of November and commence construction. “I want the project completed within two years,” he stressed stating that this would be the first fully integrated science and technology park in Pakistan, located within the premises of the NED University. The project includes constructing a technology park building with three basements and 20 floors. The office spaces in the park will be sub-leased to technology companies, including large multinationals, small and medium enterprises, research companies and startups.

The infrastructure will also feature an auditorium, innovative workspaces, high-speed connectivity, research labs, tech incubators, cafes and more. The CM mentioned that the government would also seek the special technology zone (STZ) status to offer fiscal incentives to tenants.

Water recycling project

The board was told that a Kuwaiti company had submitted an expression of interest (EoI) for a G2G arrangement for the installation and operation of a water recycling project.

The CM was informed about the company's extensive experience in wastewater treatment facilities, which would greatly benefit the project's success. The Karachi Water and Sewerage Corporation (KWSC) would supply recycled water to industries in SITE, ensuring the quality of recycled water met the industrial requirements.

The CM instructed the local government and industries department and the Public-Private Partnership Unit to finalise the project with the Kuwaiti company and initiate work promptly.

Malir Expressway

The meeting was told that the Malir Expressway project would end approximately 500 metres before the existing Kathore interchange on the M9, which currently featured a single two-lane carriageway.

The completion of the six-lane Malir Expressway would create bottlenecks at the two-lane Kathore Interchange and to mitigate these bottlenecks and operational issues, it was crucial to reconstruct, rehabilitate and widen the interchange to accommodate the increased traffic volumes without delays, the meeting was told.

The CM approved the appointment of a technical consultant to conduct necessary studies, enabling the local government department to provide the National Highway Authority with the required documentation. He directed the local government department to submit a general description, layout plan and design drawings for the construction and widening of the new Kathore Interchange.

Desalination project

It was said that the KWSC was going to initiate a seawater desalination project under the public-private partnership model to supply potable water to the residents of Karachi.

The project was first approved during the 40th policy board meeting, following which the process for soliciting investors had begun. The meeting was told that the project would be procured under the design-build-finance-operate-transfer (DBFOT) model, allowing the private partner to finance it in exchange for availability and variable payments. The private partners had also been permitted to establish a facility with a higher capacity (up to 46 million gallons per day) to enable surplus capacity sales of bottled water. This strategy aims to significantly reduce the overall tariff.

A company based in Kuwait has expressed interest in installing the plant. The CM approved the G2G agreement and directed the local government department, water corporation and partnership unit to finalise the requirements and initiate the project.

Ghotki-Kandhkot Bridge

The CM was informed that the construction of the Ghotki-Kandhkot Bridge began in August 2020. The bridge is 12.2 kilometres long, and 5.87 per cent of the work has been completed.

The construction activities were suspended on July 18, 2023, but resumed on May 2, 2024. The home minister informed the meeting that six police pickets had already been handed over to the district police of Kashmore at Kandhkot. The construction of earthen platforms for the 7th and 8th police pickets was under way.

The CM in consultation with the policy board approved Rs2 billion for incremental mobilisation advances as an additional contribution from the Sindh government's Viability Gap Funding (VGF).