Active Projects

Project Profile

Kharian-Rawalpindi Motorway
Project Information
Road Transportation
Implementing Agency:
National Highway Authority, Government of Pakistan
Punjab Province, Pakistan
Estimated Project Cost
In Approval Process
Transaction Structure completed and tendered
The Project envisages construction of 117-km 4-lane (convertible to 6-lane subsequently) 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; and Sialkot-Kharian Motorway which has been awarded to the private party and is expected to be completed in a period of 2 years.

With the completion of the Project following the completion of the Sialkot-Kharian Motorway, the travel distance between Lahore and the twin cities of Rawalpindi/ Islamabad is expected to be decreased by 80 km, potentially resulting into massive vehicle operating cost and time savings.
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
1. Land/ Right-of-Way (ROW)
2. Capital Viability Gap Funding (VGF)
3. Sovereign Guarantee to secure VGF payment obligations
Government Return
1. Revenue Sharing
2. Corporate taxes
3. Project assets, at no cost, at the end of concession period
Private Party Return
1.Project tolling rights
2. Right to explore commercial development within the Project corridor including development rights for motorway service areas
Head Projects
Phone: +92 51 921 1983-5
Public Private Partnership Authority (P3A)
5th Floor, Evacuee Trust Complex, Agha Khan Road, F-5/1, Islamabad, Pakistan
Phone: +92 51 921 1983-5