Sukkur Hyderabad Motorway Investment Brochure

Investor’s Brief Last Motorway Link of

Peshawar - Karachi Motorway (PKM)

Sukkur - Hyderabad MOTORWAY (M-6) Length: 306 kms

14

Interchanges

10

Service Areas

An attractive Investment Opportunity

25

Flyovers

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Pakistan: An Emerging Economic Hub of South Asia Islamic Republic of Pakistan, a country of 200 Million industrious population, the 6th largest in the world, is presently at gateway of phenomenal economic and industrial growth.

World Bank counted Pakistan among ten economies improving briskly on the front of “Ease of Doing Business”.

Commissioning of Gwadar deep sea port, China Pakistan Economic Corridor (CPEC), planned establishment of Nine Mega Economic Free Zones and massive Investment injected in energy and infrastructure sectors are key factors in transforming Pakistan’s economic outlook.

Pakistan’s Geostrategic Importance UZBEKISTAN 30 M 0.42%

AZERBAIJAN 9M 0.13%

KAZAKHSTAN 17 M 0.24%

TURKMANISTAN 5M 0.07%

CASPIAN SEA

Countries CHINA 1,362 M 19%

TAJIKISTAN 8M 0.11%

DISPUTED TERRITORY

AFGHANISTAN 25 M 0.36%

IRAN 77 M 1%

REGIONAL POPULATION

KYRGYZSTAN 6M 0.08%

PAKISTAN 185 M 2.60% NEPAL 26 M 0.37%

GULF STATES 8M 0.12% SAUDIA ARABIA 30 M 0.42%

Gwadar Port

OMAN 4M 0.05%

Karachi & Bin Qasim Port

ARABIAN SEA

INDIA 1,239 M 17%

XIZANG (TIBET) BHUTAN 0.7 M 0.01%

BANGLADESH 152 M 2.14 %

Population (In Million)

%age

China

1,362 18.16%

India

1,239 16.52%

Pakistan

200

2.67%

Bangladesh

152

2.03%

Iran

77

1.03%

Burma

53

0.71%

Uzbekistan

30

0.40%

Nepal

26

0.35%

Afghanistan

25

0.33%

Kazakhstan

17

0.23%

Azerbaijan

9

0.12%

Gulf States

8

0.11%

Tajikistan

8

0.11%

6

0.08%

5

0.07%

4

0.05%

MYANMAR (BURMA) Kyrgyzstan 53 M 0.75% Turkmanistan

Oman

Source: Google

Total:

3,221 42.95%

Pakistan’s geostrategic location is a major attraction for developed economies to invest in for lucrative returns with People’s Republic of China in the North, India in the East, and Iran & Afghanistan in the West.

China Pakistan Economic Corridor (CPEC) CPEC epitomizes growing mutuality of interest and vision of a shared politico economic future on the part of Pakistan and China. CPEC is not the name of a single route or alignment, rather it promises regional connectivity, information network infrastructure, energy cooperation, industries & industrial parks, agricultural development,

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poverty alleviation, tourism, financial cooperation, education, public health, livelihood improvement, and people-to people contact.

Central Asia Regional Economic Cooperation (CAREC) CAREC is a partnership forum of 11 countries and six multilateral development partners working to promote transport development, leading to accelerated economic growth and poverty reduction. The six transport corridors link the region’s key economic hubs to the landlocked CAREC countries to other Eurasian and global markets. An aggressive investment plan is in place to upgrade these corridors to the international standards.

National Highway Authority (NHA) is improving CAREC Corridor 5 & 6 in collaboration with Asian Development Bank (ADB) under a financing facility of US$ 800 Million in line with the CAREC’s agenda of sustainable transport and economic development.

NHA’s Road Network Total road length of Pakistan is about 264,000 kms. NHA is custodian of 10,638 kms. (3.9%) of National Highways, 2,055 kms of Motorways (0.7%), 262 kms of strategic roads and 100 kms of expressways. Road network in Pakistan carries over 96% of inland freight and 92% of passenger traffic. NHA operates less than 5% of Roads but caters for 80% of commercial traffic acting as backbone of the economy.

Investment in Highway / Motorway Infrastructure In recent years NHA has completed 26 Major projects substantially completed under this program are: major projects, covering 2,500 kms.

Cost in Billion Length Projects in Kms PKR US$ Pakistan has initiated an ambitious Multan - Sukkur Motorway (M-5) 392 294 2.67 program of PKR 1.5 Trillion (US$ 13.63 Lahore - Abdul Hakeem Motorway (M3) 230 148 1.34 Thakot - Havelian Section 119 134 1.21 Billion) for improving its highway Faisalabad - Multan Motorway (M-4) 240 61 0.55 infrastructure, in collaboration with Islamabad - Lahore Motorway (M-2) 357 46 0.42 multilateral development agencies, Hyderabad - Karachi Motorway (M-9) 136 44 0.40 China under CPEC framework, Private Lahore - Sialkot Motorway (LSM) 91 44 0.40 Sector Investment under BOT modality, Burhan - Havelian Motorway (E-35) 57 30 0.27 in addition to its own resources.

Note: At exchange rate of 1 US$ = 110 PKR

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Burhan - Thakot (Hazara Motorway) 176 km

Peshawar – Islamabad (M-1) 155 km

Lahore – Islamabad (M-2) 367 km

Islamabad – Dera Ismail Khan (Western Corridor) 293 km

Lahore – Sialkot (LSM) 91 km

Lahore – Multan (M-3) 230 km

Pindi Bhatian – Multan (M-4) 238 km

Multan – Sukkur (M-5) 392 km

Sukkur – Hyderabad (Planned) (M-6) 306 km

Karachi – Hyderabad (M-9) 136 km

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Sukkur - Hyderabad Motorway (M-6) 306 kms Investment Requirment NHA envisages granting a Concession to the prospective Bidder to design, finance, construct, operate, maintain and, transfer asset to NHA at the end of Concession period. The Concessionaire will be given an exclusive right to collect toll from vehicles using the Project. The Concessionaire will also be allowed to generate revenue from the service areas and commercial use of the Right of Way (ROW). Following will be the basic parameters of the Concession: • • • • •

Modality Concession Period Financial Close Period Construction Period Construction Cost

: : : : :

Build Operate and Transfer 25 years 6 months 30 months Approx. PKR 175 Billion (USD 1.14 Billion) Note: At exchange rate of 1 US$ = 153 PKR

Financing Structure To improve the viability of the project, newly constructed 6-lane Motorway facility (M-5: 392 Km) between Multan and Sukkur is proposed to be handed over to the Concessionaire of M-6 for a period of ten (10) years. After ten (10) years, the Concessionaire will hand over M-5 back to NHA. The government will also provide project land free of all encumbrances.

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The Concessionaire shall be responsible to arrange remaining funding for the Project in the following manner: • Equity : 30% • Commercial Loan : 70%

Project Returns Benefits • • • • • •

Complete north south motorway link Attract foreign investment Boost in trade activities Increase in traffic flow Time and fuel savings Economic progress

Economic Indicator • Economic IRR : 23.5%

Financial Indicator • Financial Equity IRR

:

20%+

Sukkur - Hyderabad Motorway (Alignment)

N65

M8

N55

M5

Sukkur N455

N30

N155

Major

N85 Scope

of the Project:

Length

306 kms

Interchanges

14 Nos

Lanes

6 Nos

Major Bridges

1 No

Over Pass Bridges

19 Nos

Flyovers

6 Nos

Subways

165 Nos

Cattle Creep

123 Nos

Service Areas

10 Nos

Rest Areas

12 Nos

Completion Period

30 months

Time of completion

2023

Landscaping & Intelligent Transport System (ITS)

N55

M6

N5

N25

N10

Hyderabad M9

Karachi

N5

N120

Success Story Public Private Partnership in NHA The Government of Pakistan (GoP) vision 2025 is to double the road density and achieving this mammoth development goal is only possible with support of the private sector.

NHA, in line with GoP policy established largest BOT Regime. The Public Private Partnership (PPP) is an essential component of NHA’s road development strategy.

Recently, NHA has successfully completed following motorway projects with the help of private sector investment.

Project

Islamabad - Lahore Motorway (M-2)

Hyderabad - Karachi Motorway (M-9)

Lahore - Sialkot Motorway (SLM)

Length (Kms)

357

136

91

Project Scope

Overlay and Modernization

Conversion of existing 4-lane Highway to 6-lane Motorway

Construction of 4-lane Motorway with 6-lane Structures

Concessionaire

Motorway Operation and Rehabilitation Engineering

Superhighway Construction Operation and Rehabilitation Engineering

Lahore Sialkot Motorway Infrastucture Management

PKR 46 / US$ 0.42

PKR 44 / US$ 0.40

44 / US$ 0.40

20.64%

17.82%

15.07%

Completed

Completed

Under Construction

Cost in Billion Financial Rate of Return Project Status

For more details: Member (Public Private Partnership) 27 Mauve Area, G-9/1, Islamabad, Pakistan Web: www.nha.gov.pk Email: nha.pppcell@gmail.com Tel: +92 51 903 2607 Fax: +92 51 903 2607

National Highway Authority Ministry of Communications

20200211_NHA_M6_ver06