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.
