Project Analysis

M5 Sukkur-Multan Motorway
 Project Analysis
KEY FACTS ISSUES and RESOLUTIONS
• The Sukkur-Multan section of the Peshawar-Karachi • PTI senator, Nauman Wazir, claimed Rs137bn were embezzled in Multan-Sukkur motorway
Motorway project.
• Constructed under CPEC o CSCEC called the allegations groundless, mentioning
• Approval was granted in July 2014, which predates o Bidding process and award of the contract made in accordance with local laws
the formal announcement of CPEC and international practices.
• Contracted to China State Construction Engineering o Final bid price lower than the GOP requirement.
Corporation Limited (CSCEC), May 2016. Ground o Differences between the cost estimate provided in the feasibility study report
work started in August 2016. and the bid price is common practice.
• Responsibility: o PC-1 for the Project was not prepared by CSCEC.
o Proposing Agency: Ministry of Communications • Incorrect angle of construction of utility functions at Interchanges
Implementing Agency: National Highway Authority
o
o Lengthy Process with help from NHA and Chinese Engineering Officials
Supervising Agency: Ministry of Communications,
Design Flaws: Initially did not take into account Water Logged Areas
o
•
Government of Pakistan
o Resolution: Sanding, Embankments, Filling, Drainage)
• 392 km long, six lane-wide
• N5 (Sukkur-Peshawar) Overlap - Over 8.5Km
• Project completed on July 12, 2019 (2 weeks earlier
o Construction of Overpassing Bridge at Chinese Budgeting Expense
than scheduled)
• Language Barriers - Late inclusion of Pakistani Translators as Chinese Translators had issues
• Opened for LTV (Light transport vehicles) on 13th
- Delays by a week.
September 2019
 Project Analysis

MARKET
TECHNICAL FINANCIAL ECONOMIC ECOLOGICAL
ANALYSIS
ANALYSIS ANALYSIS ANALYSIS ANALYSIS
• Regional connectivity, • The M5 was • The Sukkur Multan • Created 29,000 jobs • The distance from
enhancement of designed for speeds Motorway (M5) cost for the locals. Sukkur to Multan will
geographical linkages. of up to 120 kmh. approximately $2.94 • Constructor also built be shortened from
• Freight transport • The project consist billion, 90% of the schools, roads, 463 kilometers to
activities to provide of 54 bridges project's cost is bridges, wells and 392 kilometers, and
housing and including one major financed through water channel for the the travel time
commercial uses. bridge on River concessionary loans locals. halved from 8 hours
• Will provide an Sutlej. The on interest rates of • Material purchases to 4 hours.
avenue of investments motorway have 12 1.6% from China, boosted the • Shortening of
and businesses for service areas, 10 rest while the remaining development of the traveling time,
local and foreign areas, 11 financed by local industries comparatively less
investors and interchanges, 10 government of • Increase in economic fuel will be used
businessmen. flyovers, and 426 Pakistan. volume, impact on causing less
• Will help to vitalize underpasses.  trade and service emission of
the local economy • Relied on sectors, greenhouse gases.
and benefit the domestically  the stock exchange,
people in the area. produced materials the
and goods.  price of commodities,
 land development,
etc.
References
Cpecinfo.com. (2019). Multan-Sukkur Motorway project under CPEC to be completed by June 2019 - CPEC Latest News. [online] Cpecinfo.com. Available at:
http://www.cpecinfo.com/news/multan-sukkur-motorway-project-under-cpec-to-be-completed-by-june-2019/NzE2Ng== [Accessed 12 Sep. 2019].

Dunya News. (2019). Chinese Deputy Chief Zhao felicitates on motorway M5 completion. [online] Available at: https://dunyanews.tv/en/Pakistan/500154-Chinese-
Deputy-Chief-Zhao-felicitates-motorway-section-M5-completion [Accessed 12 Sep. 2019].

Globalconstructionreview.com. (2019). China’s CSCEC to build $2.9bn motorway in Pakistan as part of planned ‘corridor’ - News - GCR. [online] Available at:
http://www.globalconstructionreview.com/news/chinas-cscec-build-29bn-motorw7ay-pa7kis7tan-pa7rt/ [Accessed 12 Sep. 2019].

INCPak. (2019). Sukkur Multan Motorway M5 will be operational from Oct 1. [online] Available at: https://www.incpak.com/national/sindh/sukkur-multan-motorway-
m5-will-be-operational/#targetText=ISLAMABAD%3A%20Sukkur%20Multan%20Motorway%20(M5,Motorway%20patch%20is%20under%20construction
[Accessed 12 Sep. 2019].

Junaidi, I. (2019). PTI senator claims Rs137bn embezzled in Multan-Sukkur motorway project. [online] DAWN.COM. Available at:
https://www.dawn.com/news/1425666 [Accessed 13 Sep. 2019].

Ministry of Planning, P. (2019). Peshawar-Karachi Motorway (Multan-Sukkur Section) | China-Pakistan Economic Corridor (CPEC) Official Website. [online]
Cpec.gov.pk. Available at: http://cpec.gov.pk/project-details/29 [Accessed 11 Sep. 2019].

Pakistantoday.com.pk. (2019). Chinese company denies corruption in Sukkur-Multan Motorway. [online] Available at:
https://www.pakistantoday.com.pk/2019/02/19/chinese-company-denies-corruption-in-sukkur-multan-motorway/ [Accessed 13 Sep. 2019].

Xinhuanet.com. (2019). Largest transportation infrastructure under CPEC completed - Xinhua | English.news.cn. [online] Available at:
http://www.xinhuanet.com/english/2019-07/24/c_138252872.htm [Accessed 12 Sep. 2019].
Thank You