Project Profile

Kharian-Rawalpindi Motorway
Project Information
Details
Sector
Road Transportation
Implementing Agency:
National Highway Authority, Government of Pakistan
Location
Punjab Province, Pakistan
Estimated Project Cost
PKR 80 billion (US$ 445 million)
Status
Bidding evaluation process underway
Overview
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.
Silent 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
  • 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
Government Return
  • 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
Contact:
 Team Leader Projects
Phone: +92 51 921 1983-5
E-mail: s.mazahir@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

About Us

The Government of Pakistan has limited public sector funding available to cater to the country’s overall public infrastructure requirements and related services. To bridge this gap, the Government made a policy decision to tap private sector investments

Other Contacts

P3A Core Links

CONTACT US

Public Private Partnership Authority P3A, 501, 5th Floor, Evacuee Trust Complex, Agha Khan Road,F-5/1 Islamabad Pakistan
+ 92 51 9211983
+ 92 51 9211984
+ 92 51 9211985
Email info@p3a.gov.pk