Overlay and modernization of Lahore Islamabad Motorway

The Project envisaged overlay and modernization of 357 km long 6-lane access controlled toll road connecting Lahore and Islamabad cities on BOT basis at a cost of US$ 460 million. Private party was required to finance the project costs from its own resources, operate the Project fora defined concession period and transfer the Project back to National Highway Authority (NHA) at no cost at the end of concession period. The Project’s concession period is 20 years (including 2.5 years construction and 6 months financial close period) and NHA expects to earn US$ 2 billion from the Project over its concession period. The Project was awarded in April 2014 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.
 Overlay and modernization of Lahore Islamabad Motorway (M2) on BOT basis  National Highway Authority (NHA)  Overlay and modernization of 350 km long M2 toll road on BOT basis  PKR 46 billion  PKR 25.78 billion from debt
PKR 11.05 billion, and
PKR 9.18 billion from toll during construction
 Construction period 3 years (including 6 months financial close period)
Operations period 17 years (including 7 years debt repayment period)
 In operations phase since 2016  NHA revenue share PKR 209 billion
GoP taxes PKR 57 billion