NHA can bcome major revenue source.

Byline: MUHAMMAD ASAD CHAUDHRY

ISLAMABAD -- Former Member Finance National Highway Authority (NHA), Shoaib Ahmad Khan, has suggested a set of recommendations according to which the road authority can become self-sustainable by generating Rs. 25-30 billion annually in addition to the generation of $500 to 700 million by outsourcing N-5 commonly known as G.T. Road.

Shoaib remained associated with the finance wing of the road authority for decades and he got retired recently as its Member Finance.

During an interview with The Nation, he has outlined few interventions for government to make NHA a self-sustainable organisation.

He said there are five areas where NHA could reduce financial burden on government on account of development expenditure in addition to the creation of new jobs for Pakistani youth.

There are two major areas of NHA's revenue generation; toll tax and right of way (ROW). He recommended the monitoring of tolling operations by private sector.

He stated that the traffic data in terms of numbers and classifications is paramount to any exercise in this respect and engagement of private sector to manage and monitor the whole operation along with use of technology and IT tools would not only increase the revenue figure substantially but also create new openings.

Income from ROW comprises rentals from all amenities using NHA right of way, laying of optic fiber by telecommunication sector, water and gas pipes, electricity lines etc., besides roadside hoardings.

Regarding revenue generation through ROW, he suggested that NHA should lay its own optic fiber all along NHA's road network and provide connections to the telecommunications sector as the idea has perhaps the highest potential in terms of additional revenue generation and employment creation.

He further said that the preparation of a business plan for lying of optic fiber and its commercial utilization is need of the hour that may preferably be managed through a Special Purpose Vehicle (SPV), created in collaboration with major stakeholders.

To enhance the revenue from ROW, he also suggested preparing an inventory of ROW amenities to enable NHA to start billing to the existing ones and collect rentals and other charges.

To reduce the maintenance cost of existing road network, Khan also suggested optimisation of maintenance expenditure through non-traditional arrangements.

He said that the NHA should convert its maintenance operation on Toll, Operate and, Transfer (TOT)...