The Local Government Department, GoS identified and initiated this project under PPP mode.
The Korangi area which includes residents of Altaf Town, Bhittai Colony, Gulshan-e-Mustafa, Christian colony, Water Pump & Ibrahim Hyderi Goth has specific single access road to connect with Karachi city (Shahra-e-Faisal). Moreover, there are number of commercial / industrial institutions (National Industrial Park, PARCO, Oil Refineries & other Industries), Educational Institutions (IBM, BizTek, PAF KIET, Institution of Science & Technology Karachi) and Defense Installation (PAF Airmen Academy, Radar Installations). Due to the large number of population (approx. 2.5 Million) & round the clock vehicular traffic (approx. 5000 vehicles on daily basis) the available single route is very congested.
Moreover, during the day light hours frequent traffic jams are being observed due to non-availability of Bridge over Malir River at Korangi and heavy traffic moving In / Out towards KPT via Korangi Road. Presently, thousands of residents as well as day-workers along with large number of vehicles ply on the mentioned road. In case of any political or sectarian strike call, the law & order situation is worsening and road gets blocked. During heavy rainfall / monsoon seasons the road is flooded with water and area becomes isolated which is a serious concern and a grave emergency for provision of basic amenities to the residents of Korangi and abovementioned institutions / Defense Installations.
It is pertinent to mention that PAF Airmen Academy Korangi Creek is the largest Technical Training Institution of Pakistan Air Force where approx. 5000 trainees including foreigners are being trained in different technical trades and the population of Academy is more than 15000. The PAF Academy & available Radar Installations at Korangi Creek play a pivotal role to ensure an aerial Defense of Pakistan. Presently, no alternate / emergency land route is available for Residents of Korangi & abovementioned institutions / Defense Installations.
Keeping in view the above facts, an alternate / emergency route is proposed which is a dire need to resolve the heavy traffic jams / diversion issues. This route will provide huge community welfare for residents of Korangi. Additionally, it will also address the security concern of PAF Academy / Defense Installations during any political, sectarian, strike call and resolve the road blockage issues during heavy rainfall / monsoon seasons.
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).
Link road to Korangi creek starts at proposed Korangi bridge and runs parallel to the left bank of Malir river. Since Korangi road is often congested, Link road to Korangi creek will serve as an alternate route for traffic coming to and going from, National Industrial park, proposed sewerage treatment plant, airmen golf club and airmen academy. Initially it was proposed on the existing left bank of Malir river but after comprehensive hydraulic study it was decided to shift the left bank of Malir river to utilize the available land. interchange is provided between Korangi Bridge and link road to Korangi creek road for uninterrupted flow of traffic.
Link road to Pakistan refinery limited will widen the already existing 1x1 lane road into 2x2 road and will complete the link by connecting it to link road to Korangi creek which will enable the traffic generating from this area to utilize the alternate routes.
Link road is also provided to connect brooks Chowrangi road via shah Muhammad road to access Korangi bridge and link road to Korangi creek.
Project Components include detailed design, construction, operation and maintenance of following listed items:
CONCESSION PERIOD : 12 years including 02 years of construction
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.
The annual payment (starting from commercial operations date (COD) upto 10th year being the final year of operations) that GoS has to make to the Concessionaire on a semi-annual basis under the Concession Agreement that shall constitute:
The PPP Policy Board in its 33rd meeting held on 29th April 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 September 2021 in pursuance to SPP rules 2010.
The procurement process to engage private developer under process.
|Project Related Documents||Uploaded on|
|Bidding Documents - Korangi Link Road Project||06-10-2021|