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URI - Korangi Road Project - URI-KRP

OBJECTIVE / OUTCOMES OF THE PROJECT

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).

PROJECT BRIEF

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:

  • 3 + 3 Lane Bridge approximately 1.0 km length over Malir River (between Korangi Causeway and Jam Sadiq Bridge) with all guide (upstream and downstream) bunds, spurs, river training works, cunette, spurs etc. will be constructed (considering the recommendations of Hydraulic/Physical Model study report of Malir River provided by the Agency).
  • To conduct Hydraulic/Physical model study for shifting of Malir Left Bund and proposed bridge considering above mentioned report, river topography, rainfall pattern, catchment area, invert levels of outfall drain(s) of adjacent areas and subsoil conditions and take approval from the relevant department (Sindh Irrigation Department) with the due support from the Agency.
  • 2 lane Flyover over Korangi Bridge
  • Construction of road over Left Bank of Korangi river to connect Korangi road of approximately 1.5 km length
  • Construction of 2 + 2 lane interchange / loop ramps at Korangi Bridge / Link road to Korangi Creek
  • 2+2 Lane coastal/river road (Link Road to Korangi Creek) with shoulders on either side including revetement and earthwork for embankment / bund of approximately 5.9 km length
  • Construction of Culverts
  • New Construction of PRL road to connect Link Road to Korangi Creek of approximately 1.0 km length
  • Rehabilitation / Widening of Existing PRL road of approximately 1.6 km length
  • Construction of stormwater drain approximately 1.0 km length
  • Realignment of existing Creek Avenue
  • Construction of Roundabout at creek avenue to link with Malir Expressway
  • Rehabilitation of existing bunds.
  • Earthwork for embankment of recreational/commercial area (around 450m x 40m) with entrance and exit lanes and pavement works for car parking areas of 600 to 650 vehicles
  • Street Lights
  • Procure, operate and maintain 1 crane for stranded vehicle
  • Stormwater drainage chamber/pit with its disposal line for pumping stormwater near Attock Petrol Pump
  • Plantation using Miyawaki technique at all available land pockets (but not limited to the areas mentioned below) with in the project area with the approval of the Horticulture Department.
    • landside embankment slopes of right and left bund of the Malir River
    • South west side of creek avenue / Korangi causeway road (green belt area near start point),
    • Rotary area of right turn flyover,
    • Landside embankment slope of new bund
    • U turn rotary near Airman Gold course
Operations & Maintenance (10 years from substantial completion of Construction) The Concessionaire shall undertake toll operations and regular maintenance of the Project as per agreed standards.

PROJECT DESCRIPTION

CONCESSION PERIOD : 12 years including 02 years of construction

PPP MODALITY

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.

Annuity Model
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:

  • Operation & Maintenance
  • Debt repayment and servicing
  • Return on Equity (ROE) on Equity of Class-A shares of Private party
  • Taxes

The Annuity Payments are subject to deductions or holdbacks in the event of failure of Concessionaire to abide by the Concession Agreement.

PPP POLICY BOARD APPROVAL

The PPP Policy Board in its 33rd meeting held on 29th April 2021 approved the project for investor solicitation

PROJECT FINANCING

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. .

70% Debt
Debt Term: 10 years (including 2 years of grace period in which only interest payment is made).

PROCUREMENT PROCESS

The Project was launched for investor solicitation in September 2021 in pursuance to SPP rules 2010.

CURRENT STATUS

The procurement process to engage private developer under process.

LAST UPDATE ON:

09-Jan-2020

Project Related DocumentsUploaded on
Bidding Documents - Korangi Link Road Project 06-10-2021


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