Project Profile

Kharian-Rawalpindi Motorway
Project Information
Road Transportation
Implementing Agency:
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.
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
  • 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
Team Leader 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