Pipeline Projects

Project Profile

Karachi Circular Railway (KCR)
Project Information
Mass Urban Rail Transit
Implementing Agency
Pakistan Railways, Government of Pakistan
Karachi, Pakistan
Estimated Project Cost
PKR 217 billion (US$ 1.21 billion)
Ready to be floated in the market
The Project envisages construction of 43-km dual track modern mass urban rail transit system in the metropolitan city of Karachi on Public Private Partnership (PPP) basis.

The Project is expected to attract daily ridership of ~457,000 passengers in the first operational year which is expected to soar to ~1 million passengers a day over a concession period of 33 years. The Project will deploy use of the 25 electric trains initially which will be operational for 17.5 hours a day and 7 days a week. The no. of trains will increase with the increase in ridership.

The Project is anticipated to fetch significant economic and environmental benefits in terms of vehicle operating costs & time savings, reduction in carbon emissions, job creation and spill over tax impact.
Salient Features
Implementation Modality The Project is expected to be implemented under a Single Package Contract on PPP/ Build-Operate-Transfer (BOT).

Under a single package PPP contract, private party will be responsible to finance construction of Civil Infrastructure; procurement & installation of Electrical & Mechanical (E&M) component including rolling-stock; and operating the Project for a defined concession period of 33 years (which includes 3 years construction period).

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
Government Contributions
  • Land/ Right-of-Way (ROW)
  • Expected Capital Viability Gap Funding (VGF) of maximum PKR 86.5 billion (US$ 480 million)
  • Minimum Revenue Guarantee (MRG) for first 5 operational years
  • Sovereign Guarantee to secure VGF payment obligations
  • Forex cover for imported items for construction period
  • Consumer Price Index (CPI) cover for first 5 operational years
  • Right to exploit real-estate development rights of KCR stations (vertical development)
Government Return
  • Guaranteed revenue share of PKR 368 billion (US$ 2 billion)
  • Corporate taxes of PKR 419 billion (US$ 2.33 billion)
  • Project assets, at no cost, at the end of concession period
Government Return
  • Right to collect fare revenue and earn non-fare revenue
  • Commercial development of the KCR stations
  • Commercial development rights within the Project corridor
Head Projects
Phone: +92 51 921 1983-5
E-mail: m.danish@p3a.gov.pk
Public Private Partnership Authority (P3A)
5th Floor, Evacuee Trust Complex, Agha Khan Road, F-5/1, Islamabad, Pakistan
Phone: +92 51 921 1983-5