The Local Government Department, GoS identified and initiated this project under PPP mode.
Mauripur Expressway: The project aims to boost the economic activity / tourism and improve the traffic management in the city. The construction of this corridor will alleviate the traffic pressure in the city as the expressway will also have its connectivity with Lyari Expressway. The Sindh Government is also planning to enhance the load carrying capacity of existing Lyari Expressway to allow for the inclusion of heavy traffic in the area. Once this expressway is constructed and merged with the Lyari Expressway, the overall traffic load of the complete area will be drastically improved and people of Karachi and business community will be overall benefited. Also, the project will support Pakistan Navy for their movement of their very important logistics timely at their destination which in today’s time and given the situation being developed in the region, is extremely important.
ICI Interchange: The project will facilitate Karachi port heavy traffic going/coming from all over country through the junction without stopping, also to facilitate city traffic using Lyari Expressway and Mauripur road for their ultimate destination. It will further resolve traffic congestion during evening peak on Jinnah Bridge, where currently more than one kilometer queue length of vehicles can be observed due to this signalized junction.
The Local Government Department after thorough procurement process, engaged transaction advisors through execution of Consultancy Services Agreement dated 2nd November 2020 with the consortium of consultants led by KPMG (Lead member & financial consultants) and consortium members including NESPAK (Technical consultants), Lex Firma (Legal Consultants) and Ali Khan Law Associates (Legal Consultants).
The project includes the development of 08 km 2x2 lane of Mauripur Expressway and around 01 km 2 lane (one way) Interchange at ICI Bridge. Estimated construction timelines of Mauripur Expressway and Interchange at ICI Bridge are 24 and 12 months, respectively.
Operations & Maintenance (25 years from substantial completion of Construction)
The Concessionaire shall undertake toll operations and regular maintenance of the Project as per agreed standards.
The Project is a Design, Build, Finance, Operate, Maintain and Transfer project ('DBFOMT') through a Concession Agreement. A Concession Agreement is a PPP contract that gives the Private party the right to develop and operate & maintain this Project with certain conditions as laid down in the Concession Agreement.
Revenue Model (MRG)
The semi-annual payment (starting from commercial operations date (COD) upto 15th year of operation) that GoS has to make to the Concessionaire under the Concession Agreement that shall constitute:
The PPP Policy Board in its 32nd meeting held on 28th January 2021 approved the project for investor solicitation
The Project shall be financed by the Private Party and GoS through equity and debt arrangement (financial close).
30% equity (16% private partner and 14% of GoS)
Class-A Shares (Private Party):
Share capital issued to the Concessionaire (excluding the GoS) and shall be the main recipient of Dividends (Equity IRR).
Class-B Shares (GoS):
Share capital issued to the GoS which shall not be liable for non-performance by the Concessionaire. Any revenue raised from advertising and utility shall exclusively form Class-B dividends.
Debt Term: 10 years (including 2 years of grace period in which only interest payment is made).
The Project was launched for investor solicitation in June 2021 in pursuance to SPP rules 2010 and is under bid evaluation process.
The procurement process to engage private developer under process
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|Complete Document - Addendum No1 - Urban Roads Initiative Project||18-08-2021|
|Bidding Documents - Mauripur Expressway & Interchange at ICI Intersection||16-06-2021|
|Technical Feasibility Reports - Mauripur Expressway||15-06-2021|
|Technical Feasibility Reports - Interchange at ICI Intersection||15-06-2021|