Active Projects

Project Profile

Thar Coal Block-II Railway Link
Project Information
Implementing Agency
Pakistan Railways, Government of Pakistan
Thar, Sindh Province, Pakistan
Estimated Project Cost
PKR 36 billion (US$ 200 million)
Under appraisal
The Project envisages construction of 105 km railway line linking Block-II of the Thar Coal Mines to Pakistan Railways Main Line-1 (ML-1) on Public Private Partnership (PPP) basis.

The Project aims to significantly ease congestion created by the trucks which transport millions of tones of coal per annum from the mines to the nearby power plants (Jamshoro, Lucky) and upcountry (Sahiwal).

The Project has been conceived to enable transportation of 4.2 million tons of coal per annum; however, the design capacity would be enough to transport over 10 million tons of coal per annum.

The Project is also anticipated to fetch significant economic and environmental benefits in terms of vehicle operating costs & time savings, reduction in carbon emissions and job creation.
Salient Features
Implementation Modality 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 over proposed concession of 32 years (which includes 2 years construction period).
Government Contributions
  • Land/ Right-of-Way (ROW)
  • The quantum of financial contribution and provision of credit enhancement support by the GoP will only be determined once the transaction structure of the Project is finalized.
Government Return
  • Guaranteed revenue share (will be determined once the transaction structure is finalized)
  • Corporate taxes (will be determined once the transaction structure is finalized)
  • Project assets, at no cost, at the end of concession period.
Private Party Return
  • Right to collect revenues
  • Commercial development rights within the Project corridor, if any.
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