Kharian-Rawalpindi Motorway: Project to be executed on BOT basis under PPP mode

ISLAMABAD: Kharian-Rawalpindi Motorway project at the cost of Rs 108.41 billion would be executed on a Build-Operate-Transfer (BOT) basis under the Public-Private Partnership (PPP) mode.

According to documents available with Business Recorder, the local of the project is district Gujrat, Jhelum, Rawalpindi, in Punjab. Project is proposed to be executed on BOT basis and its concessionaire will build, operate and maintain the motorway facility up to the full concession period as per concession agreement and will hand over the facility to the National Highways Authority (NHA) after completion of the concession agreement.

After that, the NHA will be responsible for operations and maintenance. The Executive Committee of the National Economic Council (Ecnec) has approved Kharian-Rawalpindi Motorway project 31st January 2022.

The total cost of the project is Rs 108.41 billion included government of Pakistan share is Rs 36.112 billion [Capital - Viability Gap Funding (VGF): Rs 7.5 billion, overhead costs: Rs 16.012 billion, operational VGF): Rs 12.6 billion] and Concessionaire share is Rs 72.298 billion.

The project would be completed in two years and the total length of the motorway is 117.2 kilometers with 4-lane access-controlled from Kharian to Rawalpindi. According to documents, there is need of six Double Cabin Revo vehicles at the cost of Rs 38.4 million and eight Toyota Hilux Single Cabin at cost of Rs 26.271 million.

This new motorway facility will be an extension of the currently operational Lahore-Sialkot Motorway and under construction Sialkot-Kharian Motorway. The project initiates from the junction interchange near Kharian on Sialkot-Kharian Motorway and terminates at T-Chowk near Rawalpindi/Islamabad.

The proposed motorway traverses parallel to the N-5, passing the populous areas of Jhelum, Mangla, Dina, Sohawa, Gujar Khan, Mandra, and finally terminating near Rawat at T-Chowk (Junction of Islamabad Expressway with N-5).

The documents further described that keeping in view the traffic volumes, the project motorway is designed as a 4-lane access-controlled facility which will be expanded to 6-lane as per Level of Service (LOS) requirements.

It will include an Intelligent Transport System (ITS) for safer and more efficient use of the road. The design is based on NHA specifications. The alignment/route of motorway facility is selected keeping in purview future connectivity to other planned facilities or expansions.

There are two proposed alternate alignments, referred to as Alignment Option 1 and Alignment Option 2; one East of N-5 and the other one on West of N-5.The project area is characterized with plain, rolling and mountainous terrain inundated by Jhelum River, Mangla Dam tributaries and many nullahs and canals. Aside from being similar in terrain the proposed alignment options have slight variations in the lengths of tunnels and number of crossing waterways, canals and drains.

The exact amount of the Operational VGF will be determined at the bidding stage, which may be further reduced after negotiations with the preferred bidder. The provision of both capital and operational VGF will be made part of the financial criteria for bid evaluation.

The government will provide sovereign guarantee to the concessionaire to secure its VGF payment obligation to enhance the bankability of the project. The project will be financed in a debt to equity ratio of 70:30 after subtracting maximum of Rs 7.5 billion to be provided as capital VGF and income from toll during construction.

Copyright Business Recorder, 2022