Peshawar: The Khyber Pakhtunkhwa (KP) government and Frontier Works Organisation (FWO) on Monday reached an agreement to build four mega projects in the province.
A memorandum of agreement was signed in this regard at the Chief Minister’s House. Under the agreement, two new cities – CPEC City and Peshawar Model Town – will be developed.
Chief Minister Pervez Khattak said that the four projects were worth $11 billion. “The funds are being invested in the housing, oil and gas, hydroelectricity and cement sectors,” he said.
The CPEC City project will cost around $4.4 billion. Around 62,000 residential plots will be carved out on 80,000 kanals under the project. The Model Town project in Peshawar is spread over 108,000 kanals with 81,000 plots. The project will cost $4.6 billion.
“These projects are not loan-based. The projects will be built on a build, own and transfer basis. Not a single rupee of the K-P government is being spent on these projects. We will receive profit from them in different ways. We will get a share of the profit,” he said. Khattak said the government would extend its full support to the FWO. “We are trying to sign agreements with Chinese companies as well,” he said.
CPEC City will be built near the Colonel Sher Interchange on the Motorway. Peshawar Model Town will be located between Peshawar and Nowshera. “We estimate that we will make Rs 50 billion through these projects,” Khattak said.
He said that the government had also signed an agreement with FWO for generation of 506 megawatts of electricity in Chitral through construction of three hydro power plants. Total investment to develop these three projects is $1.11 billion, he said.
