RAWALPINDI: The Punjab government has enhanced the scope of work on the Ring Road project saying it would receive additional Rs10 billion after depreciation of the rupee against the US dollar.

“Devaluation of the rupee against US dollar will be a blessing in disguise for the proposed project worth $400 million and we will get nine to 10 billion rupees more,” Rawalpindi Commissioner retired Capt Mohammad Mehmood told Dawn.

He said the provincial government had completed talks to get a $400 million loan from the Asian Infrastructure Investment Bank (AIIB) of China for the project. The amount will be released after completion of PC-I and land procurement by the provincial government.

He said earlier the total construction cost of the project was Rs44 billion but after the devaluation of the rupee the cost was enhanced to Rs54 to Rs55 billion so the government decided to enhance the scope of work too.

Commissioner says scope of project enhanced as govt will get Rs10bn more from foreign loan after depreciation of the rupee

“The consultant has been asked to give a loop to connect Ring Road with Grand Trunk (GT) Road at Sangjani. This will benefit Islamabad and Rawalpindi equally.”

He said the basic aim to connect Ring Road with GT Road at Sangjani was to end traffic rush on the motorway.

The Ring Road would start at Rawat and culminate at the motorway near Thalian.

“After construction of Ring Road, rush is expected on the motorway and with the loop the traffic to Islamabad and Rawalpindi will come out from the Ring Road,” he said.

The commissioner asked the consultant to complete the PC-I by March so the government would allocate funds for land procurement.

“We made the initial plan under which the proposed Ring Road would be 36.8 km long and would be constructed from Radio Pakistan Rawat to Islamabad Motorway with five interchanges.”

He said the environment department had also been asked to finalise the environment impact report of the project as soon as possible.

An economic zone would also be constructed along the Ring Road which will boom business activities in the twin cities. He said the main wholesale market of the city would also be shifted adjacent to Ring Road and in this regard consultations with all stakeholders were in process.

On the other hand, a senior official of Rawalpindi Development Authority (RDA), which is the executing agency of the project, told Dawn that the PC-I was in final stages.

He said under the 2010 plan, the Rs73.20 billion worth Ring Road was to be 70 km long and was to start from Channi Bridge at GT Road across Soan River near Adiala Jail and link I-16 in Islamabad.

A link road was planned to start from Dhamial Road across Chakri Road linking Fatima Jinnah University and Medical College and terminate at Fatehjang Road crossing the motorway at Thalian and linking the Islamabad International Airport.

Two other loops were also planned from Rawat Junction at GT Road to Ring Road across DHA and from I-16 to Kohinoor Mill at GT Road.

However, the plan was changed in 2013 in view of the construction of the new airport and the total length was reduced to 54 km and the cost to Rs44.79bn. But in 2019, the new plan was rejected and the 2010 plan was revived with some amendments.

The official said the Chinese bank had agreed to provide a loan to the Punjab government in case it procured land for the project costing over Rs16bn.

Published in Dawn, December 30th, 2019