BRIEFING ON

KHARIAN - SIALKOT - LAHORE MOTORWAY PROJECT

Chairman (P&D)Chairman (P&D)

23- Aikman Road GOR-I Lahore, PakistanPh: +92-42 99205201-6 5, Fax # +92-42-99205179

Email: mubasher@pbit.gop.pk

February 22, 2011

1

LOCATION PLAN

SIALKOT - LAHOREMOTORAY PROJECT

Khunjrab Pass

Karimabad

GILGIT

ChilasSazin

Mansehra

Dasu

Malakand

Dir

Drosh

Chitral

Landi Kotal

Nowshera

RawalpindiISLAMABAD

Kharian

LAHORE

Okara

Multan

Chamman Qila Saifullah

Zhob

Dera Ismail Khan

Skardu

Jalkhad

Naran

Bannu

Mianchann

Mughal Kot

Retra

Malana

Kashmir(Disputed Territory)

Muzaffarabad

Murree

N-75M-1

M-3

Pindi Bhattian

Faisalabad

Kuchlak D. G.

Sarai Gambila

Wahgah

INDIA

CHINA

M-4

BadhabherDara Adam Khel

PESHAWAR

SIALKOTKHARIAN

KHARIAN(KSLM)

2

National Highway

Motorway (Operational)

Motorway (Under construction)

National Capital

Provincial Capital

City/Town

Provincial Boundary

International Boundary

Legend

Multan

Bahawalpur

Rahimyar Khan

Hyderabad

KARACHI

Liari

Bela

Wad

Mastung

Kalat

Surab

Khuzdar

Uthal

JiwaniGwadar Ormara

Pasni

TaftanNok Kundi Dalbandin

Nushki

QUETTA

DadharSibi

Ratodero

Jacobabad

Sukkur

Loralai

Kotri

Dadu

Rajanpur

Kotri Kabir

Moro

Hala

Ubauro

Mianchannu

ThattaN-5

M-9

ARABIAN SEA

Awaran

Turbat

Kuchlak D. G. Khan

HoshabSehwan

IRAN

M-7

M-6

M-5

Jamshoro

• Project Cost = Rs. 57 (B)

(US$ 700 (M))

• Motorway = 155.00 Km

• Daska Byepass = 11.85 Km

• M-2 Link = 8.20 Km

• Interchanges = 10 No

• Flyovers = 4 No

PROJECT OUTLINE

• Bridges = 50 No

• Bridge over Rivers = 2 No

• Underpasses

� Vehicular = 46 No

� Pedestrian = 44 No

• Drainage Culverts Single / Multi Cell

= 140 No

• Watercourse Culverts = 120 No

• Construction Period = 3 ~ 4 Years

PASRUR

CHAWINDA

SIALKOT

RIVER

CHENAB

GUJRANWALA

ZAFARWAL

GUJRAT

WAZIRABAD

SIALKOTAIRPORT

NAROWAL

LENGTH = 155 Km

06 Lanes with provision of adding

02 additional lanes in median.

Ten (10) Interchanges

M-2 Link = 8.20 Km (04 Lanes)

Daska bye-pass = 11.85 Kms (04 Lanes)

KHARIAN - SIALKOT - LAHORE

MOTORWAY

Sambrial

KHARIAN

4

LAHORE AIRPORT

RAILWAY STATION

GT ROAD

LAHORE CANALSAGIA N BRIDGE

SHAHDA RA BRIDGE

B.R

.B LIN

K

CA

NA

L

RAVI RI V

ER

DARUGHAWALA

LAKHUDAIR

HARBUNS PURA

AZ

AD

I C

HO

WK

BA

BU S

ABU

NI

AZ

I C

HO

WK

LAH

OR

E R

ING

RO

AD

LAHORE CANAL

LA

HO

RE

BY

PA

SS

LAHORE

SHEIKHUPURA

MOTORWAY M-2

WAGHA

MURIDKE

KALASHAH KAKU

GT ROAD

I N D I ARIVER

RAVI

AMRITSAR

KAMOKE

KALA

KHATAI

Three (03) Industrial Zones

Four (04) Flyovers

Bridge Over River Ravi

Underpasses

Bridge Over River Chenab

5

6

7

8

9

Alig

nm

ent

10

11

Lahore Ring Road

Interchange

Allam Iqbal

Typical Interchanges

12

Allam Iqbal International Airport

13

MOTORWAY X-SECTION

14

X-SECTION

MOTORWAY

7000 200

24001000

10800 1800

EARTH FILL

FE

NC

E

HR.O.W

MARKERS

RESERVED FOR TREES

RO

UN

DIN

GFILL SLOPE MEDIAN

FE

NC

E

EARTHEN TRACK

7400 1800 10800 200

2400 1000

ROW = 120m

VARIES w VARIESw 7000

2000

N.S.L

RESERVED FOR TREES

EARTHEN TRACK 50

0

INN

ER

SH

OU

LD

ER

INN

ER

SH

OU

LD

ER

OU

TE

RS

HO

UL

DE

R

OU

TE

RS

HO

UL

DE

R

RO

UN

DIN

G FILL SLOPE3LANES 3 x 3600 3LANES 3 x 3600

OU

TE

RE

DG

E M

AR

KIN

G

OU

TE

RE

DG

E M

AR

KIN

G

TYPICAL CROSS SECTION

15

MOTORWAY

7000 2400

500 7200 7200VARIES w VARIESw 70001000 1200 1200 2400 1000

EARTH FILL

EARTHEN TRACK

RESERVED FOR TREES

FILL SLOPE

500

500

EARTHEN TRACK

RESERVED FOR TREES

FILL SLOPE

INN

ER

SH

OU

LD

ER IN

NE

RS

HO

UL

DE

R

EARTH FILL

M-2 LINK & DASKA BYPASS ROAD

16

TECHNICAL PARAMETERSDESCRIPTION MOTORWAY EXPRESSWAY

� DESIGN SPEED 120 Km/hr 100 Km/hr

� ROAD CROSS SECTION

� Lane Width 3.6m 3.6m

� No. of Lanes 3 x 2 2 x 2

� Paved Shoulders

17

� Paved Shoulders

Outer

Inner

2.4m

1.8m

2.4

1.2m

� Median 7.4m 0.6m (NJB)

� Right Of Way (ROW) 120m 85m

18

Assumptions of Proposed PPP Regime

� Construction of KSLMPConstruction of KSLMPConstruction of KSLMPConstruction of KSLMP Estimated civil Estimated civil Estimated civil Estimated civil works costworks costworks costworks cost

Rs. 60 BillionRs. 60 BillionRs. 60 BillionRs. 60 Billion

Alternate : Alternate : Alternate : Alternate : 1111

6 6 6 6 Lanes Motorway [Lanes Motorway [Lanes Motorway [Lanes Motorway [2222xxxx3333] ] ] ] from from from from KharianKharianKharianKharian ~~~~ Lahore Lahore Lahore Lahore Length = Length = Length = Length = 155 155 155 155 KmsKmsKmsKms

Toll Rates Toll Rates Toll Rates Toll Rates EscalationEscalationEscalationEscalation

25% Every 525% Every 525% Every 525% Every 5thththth

YearYearYearYear

Concession Concession Concession Concession PeriodPeriodPeriodPeriod

25 Years25 Years25 Years25 Years

FIRR FIRR FIRR FIRR 2.79%2.79%2.79%2.79%

19

GOPbShare

InvestorShare

Concessionaire FIRR(25 years)Equity Soft Loan markup

10%Rs. 6 B(Land)

90%54B

30%Rs. 16.2 B

70%Rs. 37.8 B

6% 2.79%

0% 100%60B

30%18B

70%42B

6% 2%

Assumptions of Proposed PPP Regime

� Construction Alternate 2Construction Alternate 2Construction Alternate 2Construction Alternate 2 Estimated CostEstimated CostEstimated CostEstimated Cost Rs. 52 BillionRs. 52 BillionRs. 52 BillionRs. 52 Billion

4 4 4 4 Lane Limited Excess Lane Limited Excess Lane Limited Excess Lane Limited Excess Divided Expressway from Divided Expressway from Divided Expressway from Divided Expressway from Kharian ~ Daska Kharian ~ Daska Kharian ~ Daska Kharian ~ Daska 75757575....236 236 236 236 KmKmKmKm

Toll Rates Toll Rates Toll Rates Toll Rates EscalationEscalationEscalationEscalation

25% Every 525% Every 525% Every 525% Every 5thththth YearYearYearYear

6 6 6 6 Lanes Motorway [Lanes Motorway [Lanes Motorway [Lanes Motorway [2222xxxx3333]+]+]+]+2222* * * * from Daska ~ Lahore from Daska ~ Lahore from Daska ~ Lahore from Daska ~ Lahore 79797979....764 764 764 764 KmKmKmKm

Concession Concession Concession Concession PeriodPeriodPeriodPeriod

25 Years25 Years25 Years25 Years

FIRR FIRR FIRR FIRR 5.62%5.62%5.62%5.62%

20

GOPbShare

Investor Share

ConcessionaireFIRR

(25 years)EquitySoft Loan

6% markup

11.5%

Rs. 6 Billion(Land)

88.5%

Rs. 46 Billion

30%

Rs. 13.8 Billion

70%

Rs. 32.2 Billion

5.62%

0% 100%52B

30%15.6B

70%36.4B

4.66%

Assumptions of Proposed Loan Regime

� Construction of KSLMPConstruction of KSLMPConstruction of KSLMPConstruction of KSLMP Estimated civil Estimated civil Estimated civil Estimated civil works costworks costworks costworks cost

Rs. 60 BillionRs. 60 BillionRs. 60 BillionRs. 60 Billion

Alternate : 1Alternate : 1Alternate : 1Alternate : 1

6 Lanes Motorway [2x3] 6 Lanes Motorway [2x3] 6 Lanes Motorway [2x3] 6 Lanes Motorway [2x3] from from from from KharianKharianKharianKharian ~ Lahore ~ Lahore ~ Lahore ~ Lahore Length = 155 Length = 155 Length = 155 Length = 155 KmsKmsKmsKms

Toll Rates Toll Rates Toll Rates Toll Rates EscalationEscalationEscalationEscalation

25% Every 525% Every 525% Every 525% Every 5thththth

YearYearYearYear

Length = 155 Length = 155 Length = 155 Length = 155 KmsKmsKmsKms

Soft Loan Amount : 60 BSoft Loan Amount : 60 BSoft Loan Amount : 60 BSoft Loan Amount : 60 BLoan Payback Loan Payback Loan Payback Loan Payback periodperiodperiodperiod

25 25 25 25 YearsYearsYearsYears

FIRR FIRR FIRR FIRR 0.31%0.31%0.31%0.31%

21

Assumptions of Proposed Loan Regime

� Construction Alternate 2Construction Alternate 2Construction Alternate 2Construction Alternate 2 Estimated CostEstimated CostEstimated CostEstimated Cost Rs. 52 BillionRs. 52 BillionRs. 52 BillionRs. 52 Billion

4 Lane Limited Excess 4 Lane Limited Excess 4 Lane Limited Excess 4 Lane Limited Excess Divided Expressway from Divided Expressway from Divided Expressway from Divided Expressway from Kharian ~ Daska 75.236 KmKharian ~ Daska 75.236 KmKharian ~ Daska 75.236 KmKharian ~ Daska 75.236 Km

Toll Rates Toll Rates Toll Rates Toll Rates EscalationEscalationEscalationEscalation

25% Every 525% Every 525% Every 525% Every 5thththth YearYearYearYear

6 6 6 6 Lanes Motorway [Lanes Motorway [Lanes Motorway [Lanes Motorway [2222xxxx3333]+]+]+]+2222* * * * from from DaskaDaska ~~ Lahore Lahore 7979..764 764

Loan Payback Loan Payback Loan Payback Loan Payback PeriodPeriod

25 Years25 Years25 Years25 Yearsfrom from from from DaskaDaskaDaskaDaska ~~~~ Lahore Lahore Lahore Lahore 79797979....764 764 764 764 KmKmKmKm

PeriodPeriodPeriodPeriod

Soft Loan Amount : 52 BillionSoft Loan Amount : 52 BillionSoft Loan Amount : 52 BillionSoft Loan Amount : 52 Billion FIRR FIRR FIRR FIRR 2.01%2.01%2.01%2.01%

22

Sr. No.

Name of Firm / JV

1. M/s NEIE – KRC – HRL (JV)

RECOMMENDATIONSRECOMMENDATIONS PQ

Six international companies / JVs were short listed. However, furtherprocess was stopped on advice of Steering Committee on February26, 2008. It is recommended that all these six short listed firms maybe invited to bid on the project after approval of the competentauthority

23

1. M/s NEIE – KRC – HRL (JV)

2. M/s China Overseas Engineering Co., (COVEC)

3. M/s CCPG – HRL – GRC (JV)

4. M/s China Gezhouba

5. M/s NEIE – KRC (JV)

6. M/s CWE – DESCON – IZHAR (JV)

24

FOR GERMAN

UNIVERSITY800 ACRES

SIALKOT-LAHORE

MOTORWAY

PROPOSED

INDUSTRIAL ZONE - 1

25

FOR INDUSTRIAL3000 ACRES

UNIVERSITY

ZONE LA

HO

RE

SIALKOT-LAHORE

MOTORWAY

PROPOSED

INDUSTRIAL ZONE - 2WADALA

SINDHU

26

FOR INDUSTRIAL ZONE3000 ACRES

LA

HO

RE

500 AC

RES

AC

CE

SS

R

OA

D FOR

SWED

ISH

UN

IVERSITY

SIALKOT-LAHORE

MOTORWAY

27

FOR INDUSTRIAL ZONE3000 ACRES

500 AC

RES

FOR

SWED

ISH

UN

IVERSITY

PROPOSED

INDUSTRIAL ZONE - 3

Proposed Commercial & Housing Zone 3000 Acres-Near Kala Shah

28

Kala Shah Kaku

EXISTING TOLL PLAZA

Proposed Housing & Commercial Zone 3000

Acres

29

� Travel time from Lahore to PunjabEngineering Triangle of Gujranwala, Gujratand Sialkot will reduce to half.

� Travel time from Lahore to Capital ofPakistan (Islamabad) on GT Road corridorwill reduce by 1½ hours (from 5 hrs to 3½

KSLM OFFERS !

will reduce by 1½ hours (from 5 hrs to 3½hrs)

� Link to Pakistan Motorway System (M-II)

� Direct access to three industrial zoneslocated on KSL Motorway.

� A new economic corridor

30

KSLM OFFERS !

� City of Lahore has spread more than 30kilometers towards south. Main trafficcorridors are under tremendous pressure. Inrush hours long queues and traffic jams arecommon phenomenon.

� KSLM provides an opportunity for:-� KSLM provides an opportunity for:-

� Development of Industrial Zones alongthe project Alignment

� Developing a Housing colony &Commercial Zone at Kalashah Kaku

� Developing a new city across river Ravi ata 20 minutes distance from city centre.

31

Comparison of Toll Rates /Km (no significant difference)

Traffic Type KSLM - Toll Rate M2/M3 - Toll Rate

Car Rs. 0.60 Rs. 0.53

Mini Bus Rs. 1.10 Rs. 1.06

KHARIAN-SIALKOT-LAHORE MOTORWAY

32

Wagon Rs. 0.80 Rs. 0.80

Bus Rs. 1.60 Rs. 1.59

Loader, Delivery Van

Rs. 1.60 Rs. 1.59

Truck Rs. 2.20 Rs. 2.12

Trailer Unit Rs. 2.70 Rs. 2.65