Pakistan has decided to approach the Asian Development Bank (ADB) for funding the Rs 22 billion Faisalabad-Khanewal Motorway (M-4) project, as the Malaysian government has categorically refused to undertake the project on BOT basis.
Sources in the Communications Ministry told Business Recorder that Malaysian government's refusal has taken the concerned authorities back. Pakistan and Malaysia had signed a Memorandum of Understanding (MOU) for construction of the 184 km long Faisalabad-Khanewal Motorway at an estimated cost of Rs 17 billion.
The Malaysian government had once again renewed its pledge to make M-4 project, but it was not ready to construct the highway on BOT basis. After talks, Pakistan government was optimistic that the Malaysian side had reviewed its decision and was willing to undertake the project.
Sources said that the Malaysian side even at that time was reluctant as it believed that the project was not viable. Interestingly, there has been an increase of Rs 5 billion in the estimated cost of the project, that now stands at Rs 22 billion.
When contacted, Communications Minister Shamim Siddiqui confirmed that Pakistan government had approached the ADB to seek financial help for the project.
He said they were going to meet ADB officials in July to arrange Rs 22 billion funding for the motorway. He said that Malaysian authorities were not willing to BOT option as they believed it was not financially viable for them. He dispelled the impression that it was some kind of 'backtrack', saying that they had showed inability due to financial constraints.
The Minister said that still there would be a Malaysian contractor who would construct the 184-km road. The plan is to construct Faisalabad-Khanewal Motorway in four years time. It would have four lanes, with the provision of upgradation to six lanes.
The designed speed limit on the M-4 will be around 120 miles/hour. There would be 25 bridges, two major bridges, 85 subways, 436 culverts, 42 flyovers and five service areas. The plan has seven interchanges--at Faisalabad, Painsara, Gojra, Toba Tek Singh, Shorkot, Abdul Hakeem and Khanewal.