National Highway Authority, Government of Pakistan
Location
Punjab Province, Pakistan
Estimated Project Cost
PKR 27 billion (US$ 150 million)
Status
Financial Close underway
Overview
The Project envisages construction of 69-km 4-lane green-field access-controlled motorway on Public Private Partnership (PPP) basis.
The Project is an extension of the existing Lahore-Sialkot Motorway which has been implemented on PPP basis as well and is
currently operational.
With the completion of the Project and its follow-up extension project (Kharian-Rawalpindi Motorway), the travel distance between
Lahore and the twin cities of Rawalpindi/ Islamabad is expected to be reduced by 80 km, potentially resulting into massive vehicle
operating cost and time savings.
The Project expects to attract Average Daily Traffic of ~21,500 in the first operational of the Project. The daily traffic is
expected to grow at the rate of 3% to 3.5% per annum over the period of concession.
Salient Features
Implementation Modality
PPP/ Build-Operate-Transfer (BOT) basis.
The Project will be implemented using Project Finance structure whereby the private party will form a dedicated project company
to implement and execute the Project for a total of 25 years period (which includes 2 years construction period).
Government Contributions
Land/ Right-of-Way (ROW)
Capital Viability Gap Funding (VGF) of PKR 4 billion (US$ 22 million)
Operational VGF of PKR 868 million
(US$ 4.82 million) per annum for first 8 operational years totaling
PKR 6.94 billion (US$ 39 million)
Sovereign Guarantee to secure VGF payment obligations
Government Return
Guaranteed revenue share of PKR 8.5 billion (US$ 47 million)
Corporate taxes of PKR 36 billion (US$ 200 million)
Project assets, at no cost, at the end of concession period
Private Party Return
Project tolling rights
Right to exploit commercial development within the Project corridor including
development rights for motorway service areas
