Project Profile

Sialkot-Kharian Motorway
Project Information
Details
Sector
Road Transportation
Implementing Agency
National Highway Authority, Government of Pakistan
Location
Punjab Province, Pakistan
Estimated Project Cost
PKR 27 billion (US$ 150 million)
Status
Financial Close underway
Overview
The Project envisages construction of 69-km 4-lane 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.

With the completion of the Project and its follow-up extension project (Kharian-Rawalpindi Motorway), the travel distance between Lahore and the twin cities of Rawalpindi/ Islamabad is expected to be reduced by 80 km, potentially resulting into massive vehicle operating cost and time savings.

The Project expects to attract Average Daily Traffic of ~21,500 in the first operational of the Project. The daily traffic is expected to grow at the rate of 3% to 3.5% per annum over the period of concession.
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)
  • Capital Viability Gap Funding (VGF) of PKR 4 billion (US$ 22 million)
  • Operational VGF of PKR 868 million (US$ 4.82 million) per annum for first 8 operational years totaling PKR 6.94 billion (US$ 39 million)
  • Sovereign Guarantee to secure VGF payment obligations
Government Return
  • Guaranteed revenue share of PKR 8.5 billion (US$ 47 million)
  • Corporate taxes of PKR 36 billion (US$ 200 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