Public-private partnership: Hyderabad-Badin road may need AKD’s help
Company could recoup construction costs by collecting toll.
KARACHI:
In order to pay for new roads, the Sindh government is likely to go to the stockmarket to raise the money.
This possibility was discussed at the sixth Public-Private Partnership Policy Board meeting on Saturday for the 98 km Hyderabad-Badin road that will need Rs4.7 million. According to the secretary for finance, Naveed Kamran Baloch, and special secretary for the Pakistan Peoples Party policy board, Sohail Rajput, the road will be constructed in four sections ie Hyderabad to Tando Muhammad Khan, TMK to Matiari, Matli to Talhar, and Talhar to Badin. The chief minister, who chaired the meeeting, asked that the board approach businessman and prominent stockbroker Aqeel Karim Dedhi for help. This would not be the first time.
How it works
One of the ways the government can fund the repair or construction of a road is through a public-private partnership. To do this, it would grant the licence to operate the road to a private company, which would then raise the funds for the construction through either the stock market or through a bond offering.
The company would then recoup its costs by collecting the tolls on the road for a set number of years. Where Aqeel Karim Dedhi comes into all of this is that AKD Securities is one of the largest investment banks in the country and the government wants to use it to raise the funds.
Published in The Express Tribune, September 25th, 2011.
In order to pay for new roads, the Sindh government is likely to go to the stockmarket to raise the money.
This possibility was discussed at the sixth Public-Private Partnership Policy Board meeting on Saturday for the 98 km Hyderabad-Badin road that will need Rs4.7 million. According to the secretary for finance, Naveed Kamran Baloch, and special secretary for the Pakistan Peoples Party policy board, Sohail Rajput, the road will be constructed in four sections ie Hyderabad to Tando Muhammad Khan, TMK to Matiari, Matli to Talhar, and Talhar to Badin. The chief minister, who chaired the meeeting, asked that the board approach businessman and prominent stockbroker Aqeel Karim Dedhi for help. This would not be the first time.
How it works
One of the ways the government can fund the repair or construction of a road is through a public-private partnership. To do this, it would grant the licence to operate the road to a private company, which would then raise the funds for the construction through either the stock market or through a bond offering.
The company would then recoup its costs by collecting the tolls on the road for a set number of years. Where Aqeel Karim Dedhi comes into all of this is that AKD Securities is one of the largest investment banks in the country and the government wants to use it to raise the funds.
Published in The Express Tribune, September 25th, 2011.