Sialkot-Kharian Motorway

  1. The Project envisages construction of 69 km 4-lane green-field access controlled motorway at a cost of PKR 27.33 billion on Public Private Partnership (PPP) basis. The implementation modality of the Project is Build-Operate-Transfer (BOT) – user-charge basis;
  2. Government of Pakistan (GoP) is supporting financial viability and bankability of the Project through provision of capital and operational Viability Gap Funding (VGF);
  3. Additionally, GoP is providing Stand-By Letter of Credit/ Sovereign Guarantee to secure its payment obligations under the Project;
  4. The Project will be in 2 years following the achievement of the financial close by the concessionaire, and total concession period spreads over 25 years;
  5. Pure private investment in the Project amounts to PKR 23.33 billion (to be financed in the debt to equity ratio of 70:30);
  6. GoP expects to earn PKR 45 billion over concession period of 25 years in the form of corporate taxes and guaranteed NHA revenue share amounting to PKR 36.5 billion and PKR 8.5 billion respectively.