KPEC: A game-changer project delayed for two years despite promises of PTI leadership
PESHAWAR (APP): Being a gateway to the Central Asia Republic (CARs) and landlocked Afghanistan, Peshawar is a unique strategic city of Pakistan where kings, invaders and monarchs had constructed roads and highways for speedy transportation and promotion of trade in a bid to prolong their rule in the subcontinent.
These invaders used the famous Khyber Pass, which is the major trade and business route connecting Pakistan and Afghanistan via Torkham border, and onward the gas rich CARs.
Witnessed the vigour of Kings Sikandar Azam, Mehmood Ghaznavi, Mughal and British army, Khyber Pass’ significance has been further enhanced after construction of Rashakai Special Economic Zone (SEZ) on 1000 kanal land in Nowshera district.
PMLN leader and former member national assembly (MNA), Shah G. Gul Afridi told APP that groundbreaking of the project had been delayed for the last two years despite tall promises by the PTI leadership and urged provincial government high ups to innagurate the project as quickly as possible keeping in view of its enermous benefits.
Designed by National Highway Authority (NHA) and KP Govt, KPEC is financed with about $460.6 million IDA concessional credit from the World Bank and $22.15 million from the government.
KPEC documents has revealed that the World Bank’s concessional financing has a maturity of 30 years and an interest rate of 1.25 percent after a 5-year grace period.
This financing cost is lower than the government’s own cost of funds and the commitment charge is zero which means that any cost savings realized through competitive bidding can be repurposed or cancelled at no cost to the government.
Two thirds of the funds would come from a special window that supports regional connectivity, and therefore cannot be utilized for other projects of national nature.
This is in addition to the regular allocation of concessional IDA funds to Pakistan. KPEC is part of corridors 5 and 6 of the Central Asia Regional Economic Cooperation (CAREC) routes, which will provide the shortest link between Pakistan, Afghanistan, Tajikistan, Uzbekistan and the Arabian Sea.
KPEC’s construction cost and contingencies estimates are based on international practices and the cost estimate per kilometer without contingencies is equivalent to $6.7 million.
This cost is lower than the international average of $8-10 million per kilometer for expressways in similar mountainous and hilly terrains. The preliminary designs include 22 bridges/flyovers, 139 drainage/culvert structures, and two major interchanges.
For KPEC, a seven percent price contingency and a 12.5 percent physical contingency have been used.
KPEC would be constructed on Design-Build approach which means that cost estimates were based on preliminary designs and bidders would develop their own detailed designs and price the work accordingly after consultation with relevant Govt authorities.
Therefore, the best time to review costs will be after the contracts for the main civil works have been awarded.
The PMLN leader said KPEC is in line with international best practice and
expressed the hope that practical work on it would commence soon by the KP government with assistance of World Bank.
He said the 48 kilometers long four lane expressway will create up to 100,000 new jobs for locals in Khyber district besides bolstering SMEs and mineral sectors in Khyber Pakhtunkhwa.
He said that the existing road between Peshawar and Torkham carries about 30000 to 40000 vehicles per day, adding trucks move very slowly due to congestion and steep grades and this issue will also be addressed.
He said the existing Khyber Pass road is not adequate for increased traffic and hardly be expanded on the current alignment at reasonable cost due to engineering constraints, expensive resettlement and land acquisition.
He said it is expected that 10,651 vehicles per day will divert from the existing road to KPEC that would be onward linked with Peshawar-Motorway.
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He said that KPEC has already been delayed by nearly two years and requested the KP government to start work on the mega project keeping in view of its enermous benefits besides increasing vehicle operating cost.
He said that semi-trailers will be able to make the trip in about an hour compared to two hours by using less fuel.
The Economic Internal Rate of Return (EIRR) of the expressway is about 12.5 percent, corresponding to a benefit to cost ratio of 2.2 excluding benefits from fiber optic cables and improved road safety.
The project remains viable at 9.5 percent EIRR even with a cost increase by 20 percent and a reduction of benefits by 20 percent.
KPEC has a $72 million component to support businesses and people along the road corridor in Khyber district.
Besides revitalizing local business and SMEs, he said the project will develop urban centers and industrial estates for marble, packaging, transport and freight sectors.
