National Highway Authority, Government of Pakistan
Punjab Province, Pakistan
Estimated Project Cost
PKR 80 billion (US$ 445 million)
Bidding evaluation process underway
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.
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).
Land/ Right-of-Way (ROW)
Expected Capital Viability Gap Funding (VGF) of maximum PKR 7.5 billion (US$ 42 million)
Operational VGF of PKR 1.8 billion (US$ 10 million) per annum for first 8 operational years
totaling PKR 12.6 billion (US$ 70 million)
Sovereign Guarantee to secure VGF payment obligations
Guaranteed revenue share of PKR 68 billion (US$ 378 million)
Corporate taxes of PKR 94 billion (US$ 522 million)
Project assets, at no cost, at the end of concession period
Private Party Return
Project tolling rights
Right to exploit commercial development within the Project corridor including
development rights for motorway service areas