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Hyderabad Mirpurkhas Dual Carriageway - HMDC

OBJECTIVE / OUTCOMES OF THE PROJECT

The Works & Services Department intended to develop a dual carriageway road access from Hyderabad to Mirpurkhas city to reduce traffic congestion, and to provide quick and safe access to the commuters.

PROJECT BRIEF

Design & Construction (02 years)
A 60 kilometre dualization of existing two-lane road connecting Hyderabad to Mirpurkhas.

  • Road: 58.7 km
  • Lanes: 04
  • Toll Booths at each end: 08
  • Weighbridges: 03 numbers (Hyd, MPK and Rahuki)
  • Pedestrian Bridges: 03
  • U turns: 13
  • Bridges: 03
  • Catch pits: 21
  • Box culverts: 08
  • Pipe culverts: 40


Operations & Maintenance (30 years from substantial completion of Construction)
The Concessionaire shall undertake toll operations and regular maintenance of the Project Highway as per agreed standards.

PROJECT DESCRIPTION

PPP Modality
Design, Build, Finance, Operate, Maintain and Transfer ("DBFOT") - Revenue model

EXECUTION OF CONCESSION AGREEMENT

11-11-2009

PPP POLICY BOARD APPROVAL

The PPP Policy Board in its 3rd and 4th meeting held on 10th June 2009 and 11th November 2009, respectively, granted approval for issuance of LOI to Deokjae Construction (Pvt.) Limited and Concession

PROJECT FINANCING

26.1% Equity (18.4% private partner and 7.7% of GoS)
37.3% Bank Loan
31.3% GoS Subordinated Debt
5.3% Developer Equity


SOCIAL IMPACT OF THE PROJECT

  • Reduced travel time and fuel from Hyderabad to Mirpurkhas
  • Creation of approximately 5,000 direct job opportunities and 22,000 indirect job opportunities
  • Uplift land values significantly
  • Facilitation to major agricultural belt of Sindh
  • Opportunities for local communities for jobs and businesses due to ease of road access as well as better law & order situation in the area
  • Improve safety and reliability


PROCUREMENT PROCESS

The Project was launched for investor solicitation in December 2008.
The Technical & Financial Evaluation Committee (TFEC) concluded the procurement process and recommended Deokjae Construction Co. (Pvt.) Limited as preferred bidder.


TRANSACTION ADVISOR

IQ Capital Plus

CONCESSIONAIRE

Deokjae Construction

INDEPENDENT MONITORING

Independent Engineer: EA Consulting (Private) Limited
Independent Auditor: EY Ford Rhodes, Chartered Accountants

PROJECT PROGRESS

  • The HMDC Project achieved substantial completion of construction works in August 2012.
  • The HMDC is the first major road sector project that is based on project financing from local lenders i.e. NBP and Summit Bank. The HMDC Project through toll & non-toll revenues successfully retired bank loan in December 2020.
  • The HMDC project has commenced repayments of Subordinated debt to the GoS from March 2021.
  • The HMDC project implemented most diversified technology of Electronic Toll and Traffic Management System (ETTMS).


CURRENT STATUS

The HMDC Project is under operational phase.

DEPARTMENT

Works & Services Department

LAST UPDATE ON:

09-Nov-2021

Project Related Images

Project Related DocumentsUploaded on
Case Study - Hyderabad Mirpurkhas Dual Carriageway 30-11-2012


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