LAHORE RING ROAD SOUTHERN LOOP LAHORE RING ROAD PROJECT COMMUNICATION & WORKS DEPARTMENT GOVERNMENT OF THE PUNJAB PROJECT MANAGEMENT UNIT

Transcription

1 COMMUNICATION & WORKS DEPARTMENT GOVERNMENT OF THE PUNJAB LAHORE RING ROAD PROJECT PROJECT MANAGEMENT UNIT LAHORE RING ROAD SOUTHERN LOOP February 22, 2011 NATIONAL ENGINEERING SERVICES PAKISTAN (PVT) LIMITED 1

2 PAKISTAN GILGIT BALTISTAN ATTOCK CITY CHINA RAWALPINDI JAMMU & KASHMIR (DISPUTED TERRITORY) JHELUM CHAKWAL MIANWALI AFGHANISTAN GUJRAT SARGODHA LAHORE LAHORE BHAKKAR FAISALABAD JHANG P U N P U N J AB J A B KASUR PAKPATTAN MULTAN INDIA D G KHAN BALUCHISTAN IRAN BAHAWALPUR SIND RAHIMYAR KHAN ARABIAN SEA Punjab, Land of 5 rivers, most populous province of Pakistan. Lahore, its capital situated at bank of River Ravi.

3 GROWTH OF LAHORE Municipal Area = 2,300 Sq. Km. Estimated Population (2010) = 10.0 Million

4 TRANSPORTATION CENTRAL BUSINESS DISTRICT (2 TO 3Km RADIUS) 80% POPULATION (within 7Km RADIUS) Predominantly radial with few inter- radials Total registered vehicles = 2.3 Million (1.16 millions in Last 10 years) Vehicle travel hours = 1.87 Million / day Vehicle travel distance = 40 Million Kms / day 33,470

5 Lahore Documentary

6 LAHORE DOCUMENTARY

7 LAHORE RING ROAD (APPROVED ALIGNMENT) NORTHERN LOOP LENGTH = 40 Km SOUTHERN LOOP (PROPOSED) LENGTH = 50 Km SL Study Salient Feature

8 CONSTRUCTION AND TRAFFIC STATUS 142,801 NORTHERN LOOP (CONSTRUCTED) LENGTH = 30 Km NORTHERN LOOP (UNDER-CONSTRUCTION) LENGTH = 10 Km SOUTHERN LOOP (PROPOSED) LENGTH = 50 Km SYSTEM OCCUPANCY AFTER COMPLETION: 636,000 Vehicles/day Present Traffic 45,880 Post Project Traffic

9 TYPICAL CROSS SECTION - NORTHERN LOOP ROW = 58 ~ 90 m SERVICE ROAD / UTILITY CORRIDOR 6 LANE CARRIAGEWAY SERVICE ROAD / UTILITY CORRIDOR

10 TYPICAL CROSS SECTION - SOUTHERN LOOP ROW = 120 m Service Road Service Road 30m Reserved for METRO 6 Lane Carriageway

11 MOCK Presentation

12 MOCK Presentation

13 TO DATE PROGRESS Northern Loop Construction of Northern Loop is completed from Niazi Interchange to Lahore Airport costing Rs Billion (Length = 30 Km). Remaining 10 Km costing Rs Billion is under-construction and scheduled to be completed by June Southern Loop Approved alignment handed over to representatives of Board of Revenue and land acquisition process started. NESPAK has completed Topographical survey of the entire Loop. Detailed Planning of 30 Km length (SL-1, 2 & 3) completed and R.O.W plans issued to Board of Revenue. At-site demarcation of 22 Km length completed. Detailed design & preparation of PC-1 yet to be taken in hand. E.I.A Study completed.

14 SOUTHERN LOOP (Length = 58 km) Including Road on River Front from Babu Sabu to Niazi Interchange Length = 10 km NORTHERN LOOP Length = 48 km SOUTHERN LOOP

15 PROJECT COST - SOUTHERN LOOP (Billion Rs.) Sections Land Acquisition Construction Cost Total Cost Southern Loop (SL-1), L= 8.5 Km Southern Loop (SL-2), L=13.0 Km Southern Loop (SL-3), L= 8.0 Km Southern Loop (SL-4), L=18.2 Km 18.2 Km Cost of Southern Loop (only) Realignment of Northern Loop (from Babu Sabu to Niazi Chowk, L=10.0 Km) Cost of Southern Loop + Realignment of Northern Loop (River Front) * Above Costs are based upon January 2011 rates

16 PROJECT FUNDING OPTIONS 1. Collection of toll a) Toll from Southern Loop only. b) Toll from entire Ring Road. 2. Revenue generation by development of Economic Zones along Southern Loop (Value Addition) i. Ribbon Development Only ii. Ribbon + Cluster Development 3. GoPb to acquire land from its own resources. Construction from loan. 4. Entire Funding by arranging Loan from a Chinese bank (loan to be returned by revenue generation through 1 & 2 above)

17 PROPOSED TOLL RATES FLAT TOLL TO BE COLLECTED AT EACH INTERCHANGE ENTRY POINT NO TOLL FOR TWO (2) & THREE (3) WHEELERS (MOTOR CYCLE / RICKSHAW EXEMPTED) TOLL RATES FOR CAR / JEEP Rs. 10/- per Entry (Light Toll Rate) Rs. 15/- per Entry (Medium Toll Rate) Rs. 20/- per Entry (Heavy Toll Rate) TOLL RATES FOR OTHER VEHICLES Hiace/wagon 1.25 x Car Toll Minibus 2.00 x Car Toll Loader pickup 2.50 x Car Toll Bus 3.50 x Car Toll Truck/trailer 4.00 x Car Toll

18 Northern Loop EXPECTED TOLL TRAFFIC (Daily) INTERCHANGE NUMBER OF ENTERING VEHICLES (ADT) North-Bound South-Bound Total Niazi 38,474 61,516 Lakhu Dair 57,341 17,502 G.T. Road 15,999 34,068 Harbanspura 27,348 26,652 Barki Road 23,191 33,088 Package-11 near Bhatta Chowk 22,603 16,815 Bedian Road 24,982 18,922 Package 17 32,005 38,066 Total 241, , ,572 Realignment along River Front Babu Sabu 48,728 - Saggian 6,776 - New Interchange near Niazi 40,750 - Total 96,254-96,254 Southern Loop Ferozepur Road 22,161 43,272 Halloki 8,502 17,172 Raiwind Road 21,421 22,559 Multan Road 1,483 8,031 Total 53,567 91, ,601

19 TOLL REVENUE STREAM (Million Rs.) Years Southern Loop Northern Rs. Rs. Rs. Rs. Rs. Rs. 20/ ,100 3,150 4, ,389 3,584 4, ,324 2,718 4,077 5, ,124 1,499 3,077 4,615 6, ,273 1,697 3,483 5,225 6, ,441 1,922 3,944 5,915 7, ,088 1,632 2,176 4,465 6,697 8, ,994 2,992 3,989 8,186 12,279 16, ,600 5,400 7,201 14,777 22,166 29,555 TOTAL 26,687 40,031 53, , , ,056 Northern Loop Revenue = 4.25 times Southern Loop Revenue Revenue has been calculated for 15 years stream

20 TYPICAL CROSS SECTION - SOUTHERN LOOP (WITH RIBBON DEVELOPMENT) 1. Ribbon Development DEVELOPMENT OF ECONOMIC ZONES ROW = 244 m (800 ft) CITY SIDE Increase Ring Road ROW from 120 m to 244 m (800 feet) to create 124 a linear m Reserved Economic for Zone along Southern Road Way Loop = 120 mwherever undeveloped Ribbon Development land is available. Estimated Area = 7,953 Kanals Service Road 2. Cluster Development 30m Reserved for METRO Four (4) number consolidated clusters of land are identified at Service Road 6 Lane various locations along Southern Loop which Carriageway can be developed into Industrial area, Grain market, Freight Station, Truck/Bus Stand and Residential Colony. Estimated Area = 22,790 Kanals

21 PROPOSED SITES FOR ECONOMIC ZONES Ribbon Development Truck/Bus Stand at Miraka Residential Area at Taru Gill Freight Station / Grain Market at Halloki Industrial Area at Kahna PROPOSED ALONG RING ROAD RIBBON Development CLUSTER DEVELOPMENT Industrial Residential Truck/Bus Terminal LAHORE MASTER PLAN FEATURES Commercial Bus/Wagon Terminal Health Institutional Ribbon Development 7,953 Kanals Cluster Development 22,790 Kanals Industrial Proposed Educational Parks

22 COST COST OF ECONOMIC ZONES & ESTIMATED REVENUE Ribbon Development Cluster Development Residential Industrial Area Areas (1 location) (3 locations) Total Total land to be acquired (Kanals) 7,953 5,850 16,940 30,743 Land Acquisition Cost (Million Rs.) 6,124 4,388 9,539 20,051 Development Cost (Million Rs.) 3,181 1,755 6,776 11,712 Cost of Land + Development (Million Rs.) REVENUE 9,305 6,143 16,315 31,763 Average Land Acquisition Cost = Rs Million per Kanal Sellable Developed Land (Kanals) 5,567 3,510 11,858 20,935 Estimated Revenue from Developed Land (Million Rs.) 27,836 14,040 29,645 71,521 Average Selling Cost = Rs. 3.5 Million per Kanal

23 PROJECT FUNDING SCENARIOS Scenario-1: Road Construction & land acquisition for Southern Loop, (No Economic Zones). a) Toll from Southern Loop only (62.50 Billion) b) Toll from entire Ring Road (65.55 Billion) Scenario-2: Road Construction & land acquisition for Southern Loop including Economic Zones. a) Toll from Southern Loop only (94.28 Billion) b) Toll from entire Ring Road (97.31 Billion) Scenario-3: Construction of Southern Loop excluding Realignment of Northern Loop along River Front, from Babu Sabu to Niazi Interchange. (No Economic Zones) a) Toll from Southern Loop only (46.86 Billion) b) Toll from entire Ring Road (49.91 Billion) All the above scenarios shall also be analyzed for GoPb funding in the form of Cost of Land.

24 PARAMETERS FOR THE LOAN The Chinese road construction firm will facilitate loan for Government of the Punjab through a Chinese bank (Expected Interest Rate = 3.14% on foreign currency). The road construction firm will in return be awarded construction of Southern Loop (SL) and development works of Economic Zones (Commercial, Industrial and Residential Areas). The road construction firm will hand over the project to Government of the Punjab after completing construction and development works. Government of the Punjab shall collect toll (either on Southern Loop or from entire Ring Road). Developed land in Economic Zones shall be sold out by Government of the Punjab within five years after completion of the development. Loan shall be returned by Government of the Punjab in 15 equal installments. Therefore analysis of the project has been made for a period of 18 years including construction period of three (3) years. Fluctuation in Pak Rupee vs. foreign currency exchange rate covered by assuming re-lending of the soft loan by Government of Pakistan to Government of the Punjab at an interest rate of 13.17%. Detailed design of Southern Loop and Economic Zones will be responsibility of Government of the Punjab. Price escalation at 10% has been included in Revenue and Cost Streams.

25 PROJECT FINANCIAL ANALYSIS Scenario 1a: Toll on Southern Loop only, no Economic Zones Cost of Land Acquisition Billion Rs. GoPb Funding Cost of Road Construction Billion Rs. Total Input Billion Rs. Ring Road Miscellaneous Costs (Inflation, IDC, Insurance and Loan Arrangement Charges) Billion Rs. Loan = 1.02 Billion US $ Loan = 0.74 Billion US $ Toll from SL only Billion Rs. (Toll Rs. 10/car) Billion Rs. (Toll Rs. 15/car) Billion Rs. (Toll Rs. 20/car) Toll Rs./car FIRR Out put Annual Loan Repayment 10 -ve Billion Rs. for 15 years 15 -ve 9.97 Billion Rs. 20 -ve (Foreign currency 3.14% re-lent by GOP at 13.17%)

26 PROJECT CASH FLOW STATEMENT Scenario 1a: Toll on Southern Loop only, no Economic Zones Million Rs. Year Total CASH INFLOW Toll Revenues (Northern Loop) Toll Revenues (Southern Loop) ,124 1,273 1,441 1,632 2,992 5,400 40,031 Sale of Economic Zone plots Commercial Loan 40,369 28,159 19, ,929 Total INFLOW 40,369 28,159 19, ,124 1,273 1,441 1,632 2,992 5, ,960 LOAN = 87,930 TOLL REVENUE FROM SL = 40,031 CASH OUTFLOW O & M Costs ,092 1,758 14,710 Ring Road Authority Costs ,840 Capital Expenditure 40,369 28,159 19, ,929 Repayment of Interest ,580 11,298 10,978 10,616 10,206 7,192 1, ,961 Repayment of Commercial Loan ,146 2,428 2,748 3,110 3,520 6,534 12,129 87,929 Total OUTFLOW 40,519 28,324 19,582 14,389 14,455 14,528 14,608 14,696 15,289 16, ,369 CONSTRUCTION LOAN REPAYMENT = 205,890 NET CASH FLOW ,396-13,331-13,255-13,167-13,064-12,297-10, ,409

27 PROJECT FINANCIAL ANALYSIS Scenario 1b: Toll on Entire Ring Road, no Economic Zones Cost of Land Acquisition Billion Rs. GoPb Funding Northern Loop 81% Southern Loop 19% Cost of Road Construction Billion Rs. Total Input Billion Rs. Ring Road Toll from entire Ring Road Billion Rs. (Toll Rs. 10/car) Billion Rs. (Toll Rs. 15/car) Billion Rs. (Toll Rs. 20/car) Out put Miscellaneous Costs (Inflation, IDC, Insurance and Loan Arrangement Charges) Billion Rs. Loan = 1.07 Billion US $ Loan = 0.79 Billion US $ Toll Rs./car FIRR Annual Loan Repayment % Billion Rs. for 15 years % Billion Rs % (Foreign currency 3.14% re-lent by GOP at 13.17%)

28 CASH INFLOW PROJECT CASH FLOW STATEMENT Scenario 1b: Toll on entire Ring Road, no Economic Zones Year Total Toll Revenues (Northern Loop) Toll Revenues (Southern Loop) Sale of Economic Zone plots Rs. Million 0 3,150 3,584 4,077 4,615 5,225 5,915 6,697 12,279 22, , ,124 1,273 1,441 1,632 2,992 5,400 40, Commercial Loan 43,928 28,628 19, ,090 Total INFLOW 43,928 31,778 23,118 5,070 5,740 6,498 7,357 8,329 15,271 27, ,163 CASH OUTFLOW LOAN = 92,090 TOLL REVENUE FROM NL & SL = 211,073 O & M Costs ,025 1,127 1,239 1,364 2,196 3,537 29,641 Ring Road Authority Costs ,840 Capital Expenditure 43,928 28,628 19, ,090 Repayment of Interest ,128 11,832 11,497 11,118 10,689 7,533 1, ,543 Repayment of Commercial Loan ,247 2,543 2,878 3,257 3,686 6,843 12,703 92,090 Total OUTFLOW 44,078 28,818 19,743 15,506 15,620 15,744 15,881 16,031 17,042 18, ,204 CONSTRUCTION LOAN REPAYMENT = 215,633 NET CASH FLOW ,960 3,375-10,436-9,880-9,246-8,524-7,702-1,771 8,897-41,041

29 PROJECT FINANCIAL ANALYSIS Scenario 2a: Toll on Southern Loop only, with Economic Zones Cost of Total Land Acquisition Billion Rs. GoPb Funding Economic Zones 74% Southern Loop 26% Cost of Road Construction Billion Rs. Ring Road Cost of Development of Economic Zone Billion Rs. Total Total Input Input Billion Billion Rs. Rs. Miscellaneous Costs (Inflation, IDC, Insurance and Loan Arrangement Charges) Billion Rs. Loan = 1.53 Billion US $ Loan = 0.96 Billion US $ Economic Zones Toll from SL only Billion Rs. (Toll Rs. 10/car) Billion Rs. (Toll Rs. 15/car) Billion Rs. (Toll Rs. 20/car) Out put Sale of Economic Zones in 5 years (from years 4 to 8) Billion Rs. Total Return FIRR Annual Loan Repayment % Billion Rs. for 15 years % Billion Rs % (Foreign currency 3.14% re-lent by GOP at 13.17%)

30 CASH INFLOW PROJECT CASH FLOW STATEMENT Scenario 2a: Toll on Southern Loop only, with Economic Zones Rs. Million Year Total Toll Revenues (Northern Loop) Toll Revenues (Southern Loop) ,124 1,273 1,441 1,632 2,992 5,400 40,031 Sale of Economic Zone plots ,558 26,178 17,278 19,006 20, ,926 Commercial Loan 64,155 38,927 29, ,292 Total INFLOW 64,155 38,927 28,211 29,552 27,303 18,551 20,447 22,538 2,992 5, ,249 CASH OUTFLOW LOAN = 132,292 TOLL REVENUE FROM SL = 40,031 REVENUE FROM SALE OF PLOTS = 111,926 O & M Costs , ,710 Ring Road Authority Costs ,840 Capital Expenditure 64,155 38,927 29, ,292 Repayment of Interest ,423 16,998 16,517 15,972 15,356 10,821 2, ,476 Repayment of Commercial Loan ,228 3,653 4,135 4,679 5,295 9,830 18, ,292 Total OUTFLOW 64,305 39,092 29,393 21,314 21,381 21,454 21,533 21,621 22,214 23, ,610 CONSTRUCTION LOAN REPAYMENT = 309,768 NET CASH FLOW ,238 5,922-2,903-1, ,222-17, ,361

31 Cost of Total Land Acquisition Billion Rs. GoPb Funding Economic Zones 35% PROJECT FINANCIAL ANALYSIS Scenario 2b: Toll on entire Ring Road, with Economic Zones Northern Loop 53% Cost of Road Construction Billion Rs. Cost of Development of Economic Zone Billion Rs. Total Input Billion Rs Rs. Ring Road Miscellaneous Costs (Inflation, IDC, Insurance and Loan Arrangement Charges) Billion Rs. Loan = 1.58 Billion US $ Loan = 1.01 Billion US $ Economic Zones Toll from entire Ring Road Billion Rs. (Toll Rs. 10/car) Billion Rs. (Toll Rs. 15/car) Billion Rs. (Toll Rs. 20/car) Out put Sale of Economic Zones in 5 years (from years 4 to 8) Billion Rs. Total Return FIRR Annual Loan Repayment % Billion Rs. for 15 years % Billion Rs % (Foreign currency 3.14% re-lent by GOP at 13.17%)

32 PROJECT CASH FLOW STATEMENT Scenario 2b: Toll on entire Ring Road, with Economic Zone Rs. Million CASH INFLOW Year Total Toll Revenues (Northern Loop) 0 3,150 3,584 4,077 4,615 5,225 5,915 6,697 12,279 22, ,042 Toll Revenues (Southern Loop) ,124 1,273 1,441 1,632 2,992 5,400 40,030 Sale of Economic Zone plots ,558 26,178 17,278 19,006 20, ,926 Commercial Loan 67,713 39,396 29, ,453 Total INFLOW 67,713 42,546 32,928 33,628 31,917 23,776 26,362 29,235 15,271 27, ,451 CASH OUTFLOW LOAN = 136,453 TOLL REVENUE FROM SL & NL = 211,072 REVENUE FROM SALE OF PLOTS = 111,926 O & M Costs ,025 1,127 1,239 1,364 2,196 3,537 29,639 Ring Road Authority Costs ,839 Capital Expenditure 67,713 39,396 29, ,453 Repayment of Interest ,971 17,532 17, ,839 11,161 2, ,057 Repayment of Commercial Loan ,330 3,768 4,265 4,826 5,462 10,139 18, ,453 Total OUTFLOW 67,863 39,586 29,553 22,432 22,545 22,669 22,806 22,956 23,967 25, ,441 CONSTRUCTION LOAN REPAYMENT = 319,510 NET CASH FLOW ,960 3,375 11,197 9,374 1,107 3,556 6,287-8,697 1,971-32,990

33 PROJECT FINANCIAL ANALYSIS Scenario 3a: Toll on Southern Loop only, No Economic Zones, No Realignment of Northern Loop along River Front Cost of Land Acquisition Billion Rs. GoPb Funding Cost of Road Construction Billion Rs. Total Input Billion Rs. Ring Road Miscellaneous Costs (Inflation, IDC, Insurance and Loan Arrangement Charges) Billion Rs. Loan = 0.76 Billion US $ Loan = 0.50 Billion US $ Toll from SL only Billion Rs. (Toll Rs. 10/car) Billion Rs. (Toll Rs. 15/car) Billion Rs. (Toll Rs. 20/car) Toll Rs./car FIRR Out put Annual Loan Repayment 10 -ve Billion Rs. for 15 years 15 -ve 6.81 Billion Rs. 20 -ve (Foreign currency 3.14% re-lent by GOP at 13.17%)

34 CASH INFLOW PROJECT CASH FLOW STATEMENT Scenario 3a: Toll on Southern Loop only, No Economic Zones, No Realignment of Northern Loop along River Front Million Rs. Year Total Toll Revenues (Northern Loop) Toll Revenues (Southern Loop) ,124 1,273 1,441 1,632 2,992 5,400 40,031 Sale of Economic Zone plots Commercial Loan 32,688 19,794 13, ,730 Total INFLOW 32,688 19,794 13, ,124 1,273 1,441 1,632 2,992 5, ,761 CASH OUTFLOW LOAN = 65,730 TOLL REVENUE FROM SL = 40,031 O & M Costs ,223 10,230 Ring Road Authority Costs ,840 Capital Expenditure 32,688 19,794 13, ,730 Repayment of Interest ,657 8,445 8,206 7,936 7,630 5,377 1,194 88,179 Repayment of Commercial Loan ,604 1,815 2,054 2,325 2,631 4,884 9,067 65,730 Total OUTFLOW 32,838 19,959 13,429 10,783 10,835 10,891 10,955 11,025 11,491 12, ,709 CONSTRUCTION LOAN REPAYMENT = 153,909 NET CASH FLOW ,789-9,711-9,618-9,514-9,393-8,499-6, ,949

35 PROJECT FINANCIAL ANALYSIS Scenario 3b: Toll on Entire Ring Road, No Economic Zones, No Realignment of Northern Loop along River Front Cost of Land Acquisition Billion Rs. GoPb Funding Northern Loop 78% Southern Loop 22% Cost of Road Construction Billion Rs. Total Input Billion Rs. Rs. Ring Road Toll from entire Ring Road Billion Rs. (Toll Rs. 10/car) Billion Rs. (Toll Rs. 15/car) Billion Rs. (Toll Rs. 20/car) Out put Miscellaneous Costs (Inflation, IDC, Insurance and Loan Arrangement Charges) Billion Rs. Loan = 0.79 Billion US $ Loan = 0.55 Billion US $ Toll Rs./car FIRR Annual Loan Repayment % Billion Rs. for 15 years % 7.46 Billion Rs % (Foreign currency 3.14% re-lent by GOP at 13.17%)

36 CASH INFLOW PROJECT CASH FLOW STATEMENT Scenario 3b: Toll on entire Ring Road, No Economic Zones, No Realignment of Northern Loop along River Front Year Total Toll Revenues (Northern Loop) Toll Revenues (Southern Loop) Sale of Economic Zone plots Rs. Million 0 2,639 3,003 3,416 3,867 4,378 4,956 5,611 10,288 18, , ,124 1,273 1,441 1,632 2,992 5,400 40, Commercial Loan 36,247 20,263 13, ,891 Total INFLOW 36,247 22,902 16,384 4,409 4,991 5,651 6,397 7,243 13,280 23, ,225 CASH OUTFLOW LOAN = 69,891 TOLL REVENUE FROM NL & SL = 183,334 O & M Costs ,531 2,466 20,681 Ring Road Authority Costs ,840 Capital Expenditure 36,247 20,263 13, ,891 Repayment of Interest ,205 8,980 8,726 8,438 8,113 5,717 1,270 93,762 Repayment of Commercial Loan ,706 1,930 2,184 2,472 2,798 5,193 9,640 69,891 Total OUTFLOW 36,397 20,453 13,590 11,759 11,844 11,937 12,040 12,153 12,912 14, ,065 CONSTRUCTION LOAN REPAYMENT = 163,653 NET CASH FLOW ,449 2,794-7,350-6,853-6,287-5,643-4, ,837-7,840

37 SUMMARY OF FINANCIAL ANALYSIS (Toll = Rs. 15/Car) Scenario Funding Scenarios Project Cost (Billion Rs.) Loan Amount [Billion Rs. (Billion $)] GoPb Funding (Billion Rs.) Revenue (Billion Rs.) FIRR (%) Installment (Billion Rs.) 1a Toll from Southern Loop only (1.02 $) ve (0.74 $) b Toll from entire Ring Road (1.07 $) (0.79 $) a Economic Zone with Toll from Southern Loop only (1.53 $) (0.96 $) b Economic Zone with Toll from entire Ring Road (1.58 $) (1.01 $) a Toll from Southern Loop Only (No River Front) (0.76 $) ve (0.50 $) b Toll from entire Ring Road (No River Front) (0.79 $) (0.55 $)

38 Both Parties agree that the following formalities must be met in the manner and according to the schedule set out herein below: Sr. No. FRAMEWORK AGREEMENT FOR LOAN ACQUISITION Activity Months Subsequent to Signing of Agreement a. b. c. d. e. f. g. The Government of Punjab shall finalize and approve project design with provision of feasibility studies, geological report, topographical report and notify the same to prospective contractor. The Government of Punjab shall obtain and secure all necessary and or relevant authorizations, sanctions and approvals including but not limited to PC-1, Public Private Partnerships Agreement, Approval from ECNEC. The Government of Punjab shall finalize and approve Technical Specifications relevant to the Project and notify the same to prospective contractor. Prospective contractor shall initiate negotiations with China Development Bank for provision of Project financing and supply provisional Terms and Conditions for such facility against Sovereign Guarantee. Parties shall prepare reports and document for submission to the financing institution. Parties shall negotiate firm Contract Price and Terms and Conditions of the Commercial Contract after assurance of financial assistance from the Bank / Institution. The Government of Punjab shall conduct detailed negotiations and finalize Project Financing Agreement with active assistance of prospective contractor. STUDIES DESIGN

39

40 BACKGROUND In 2005, C&W Department awarded the task to NESPAK for alignment study with the objectives to: Alleviate congestion on radial arterials Improve operation of critical intersections in the city Reduce overall travel time along city network NESPAK completed the task through: Traffic Counts at 107 locations and 65,000 O-D interviews Travel Time Surveys & Road Inventory of major arterials Development of Computerized Traffic Model BACK

41 SALIENT FEATURES NORTHERN LOOP SOUTHERN LOOP Lengths: 6 Lane Carriageway 2 Lane Service Road Drains 40 Km 72 Km 120 Km 50 Km 120 Km 120 Km Design Speed 100 Km / h 100 Km / h (with provision of Service 3+3 (with provision of Service No. of Lanes Roads & space for provision of Roads) 4 th lane & Metro) R.O.W 58~90 m 160 m Interchanges Present 9 6 Future 1 5 Vehicular Underpasses Pedestrian Pedestrian Bridges 15 + Pedestrian Bridges Cost Land Acquisition Rs. 22 Billion (US$ 250 M) Rs Billion (US$ 230 M) Construction Rs. 25 Billion (US$ 290 M) Rs Billion (US$ 350 M) BACK

42 Pkg # PROGRESS OF NORTHERN LOOP Package Name Length (Km) Physical Progress (%) 1 Interchange at Niazi Chowk Road from Niazi Chowk to Saggian Road from Niazi Chowk to Mahmood Booti Interchange at Saggian Chowk Road from Saggian to Gulshan-e- Ravi Road from Barki Road Int. to Ghazi Road Int Abdullah Gul Interchange Road from Canal to Airport Access Road Interchange at Harbanspura Canal Crossing Quaid-e-Azam Interchange Interchange at Ghazi Road Road from Lakhudair to G.T Road Road from Mahmood Booti to Lakhudair Road from Ghazi Road Int. to Bedian Road Int Interchange at Bedian Road Road from Bedian Road Int. to Khaira Disty Interchange at Khaira Distributary (30 Kms Constructed) Total 40 Overall 85% BACK

43 FULL CLOVERLEAF INTERCHANGE AT FEROZEPUR ROAD CROSSING BISMA RICE MILL Gaju Mattah Rehmat Pura Back

44 PARTIAL CLOVERLEAF INTERCHANGE AT RAILWAY CROSSING NEAR HALLOKI VILLAGE HALLOKI RAILWAY LINE Back

45 FULL CLOVERLEAF INTERCHANGE AT RAIWIND ROAD CROSSING Back

46 FULL CLOVERLEAF INTERCHANGE AT MULTAN ROAD / CANAL CROSSING BERGER PAINTS RAIWIND ROAD Back

47 COST OF RECOMMENDED PACKAGES Billion Rs. SL-1 SL-2 SL-3 SL-4 (8.5 Km) (13.0 Km) (8.0 Km) (20.5 Km) TOTAL (50.0 Km) Construction Cost Land Cost Total Back

48 Package S `SL-1 (L = 8.5 Km) ```` RECOMMENDED PACKAGES Back LRR Southern Loop (L = 50 Kms) Package SL-3 (L = 8.0 Km) Package SL-2 (L = 13.0 Km) Package SL-4 (L = 20.5 Km)

49 COST OF OPTIONS Construction OPTION-1 OPTION-2 (50.0 Km) (41.5 Km) OPTION-3 (49.5 Km) OPTION-4 (58.0 Km) Cost (Billion Rs.) Land Cost (Billion Rs.) Total (Billion Rs.) Back

50 CONSTRUCTION OPTION - 1 (Length = 50 km) Southern Loop from P 17 to Babu Sabu Interchange NORTHERN LOOP OPTION 1 Length = 50 km SOUTHERN LOOP Back

51 CONSTRUCTION OPTION - 2 (Length = 41.5 km) From Ferozepur Road to Babu Sabu Interchange (Package SL-1 excluded) NORTHERN LOOP OPTION 2 Length = 41.5 km SOUTHERN LOOP Back

52 CONSTRUCTION OPTION - 3 (Length = 49.5 km) Option-2 + Road on River Front from Babu Sabu to Niazi Interchange NORTHERN LOOP OPTION 3 Length = 49.5 km SOUTHERN LOOP Back

53 CONSTRUCTION OPTION - 4 (Length = 58 km) Option-3 + Road on River Front from Babu Sabu to Niazi Interchange NORTHERN LOOP Length = 58 km SOUTHERN LOOP Back

54 LAND, DEVELOPMENT AND SELLING UNIT COSTS (Rs. / Kanal) LOCATION ACQUISITION COST DEVELOPMENT CHARGES SALE PRICE OF DEVELOPED LAND RIBBON DEVELOPMENT 1. Kahna 1,050, ,000 5,000, Halloki 850, ,000 5,000, Miraka 600, ,000 5,000,000 CLUSTER DEVELOPMENT a) Industrial 1. Kahna 750, ,000 2,500, Halloki 600, ,000 2,500, Miraka 400, ,000 2,500,000 b) Residential 1. Taru Gill 750, ,000 4,000,000

55 Project Cost in Various Scenarios (Billion Rs.) Scenario Land Acquisition Construction Cost Sub Total Toll System Total Cost Scenario 1 Southern Loop excluding economic zones Development of Economic Zones Scenario 2 Southern Loop including Economic Zones Realignment of Northern Loop Scenario 3 Southern Loop excluding economic zones and Realignment of Northern Loop * Above Costs are based on January 2011 rates

56 End of Link Slides