Conversion of existing 4-lane super highway into 6-lane Karachi Hyderabad Motorway on BOT basis

The Project envisaged construction and conversion of existing 4-lane 136 km long super highway into 6-lane access controlled motorway connecting Karachi and Hyderabad cities on BOT basis at a cost of US$ 430 million. Private party was required to finance the project construction from its own resources, operate the Project for a defined concession period and transfer the Project back to NHA at no cost at the end of concession period. The Project’s concession period is 25 years (including 2.5 years construction and 6 months financial close period) and NHA expects to earn guaranteed US$ 1.43 billion over the concession period. The Project was awarded in March 2015 and currently it is in operations phase.

Projects Essentials Details

 Project Name  Implementing Agency  Project Scope  Project Cost  Project Cost Financing Mix  Project Time-Line  Project Status  Expected Financial Benefit to Gov.
 Conversion of 4 lane super-highway into 6 lane motorway (M9) on BOT basis  National Highway Authority (NHA)  Conversion of 136 km long 4 lane super-highway into 6 lane motorway (M9) on BOT basis  PKR 44.25 billion  PKR 25.29 billion from debt
PKR 10.84 billion, and
PKR 8.13 billion from toll during construction
 Financial close period 6 months
Construction period 2.5 years
Operations 22 years (including 7.5 years debt repayment period)
 In operations phase since 2017  NHA revenue share PKR 143 billion GoP taxes PKR 107 billion