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
