1. GOVERNMENT OF PAKISTAN MINISTRY OF COMMUNICATIONS NATIONAL HIGHWAY AUTHORITY INVESTMENT OPPORTUNITIES IN ROAD INFRASTRUCTURE OF PAKISTAN First Pakistan-Russia Investment Forum Marriot, Islamabad on Nov. 19, 2015

2. SEQUENCE Pakistan’s Geo-strategic Location Introduction NHA NHA Future Plan NHA Development Program under PPP

3. Pakistan is at the peripheral of South Asia on one side and the Central Asia on the other This ideal location makes Pakistan as the most attractive and shortest route for transit to countries located in the east, west and north including the Central Asian Republics (CARs) Even the Indian trade to CARs in an economical, convenient and swift manner is dependent on availability of passage through Pakistan PAKISTAN’S GEO-STRATEGIC GEOGRAPHIC LOCATION

4. PAKISTAN’S GEO-STRATEGIC SIGNIFICANCE K A Z A K H S T A N UZBEKISTAN TURKMENISTAN P A K I S T A N AFGHANISTAN I R A N C H I N A KYRGYZSTAN TAJIKISTAN RUSSIA B L A C K S E A T U R K E Y ARMINIA C A S P I A N S E A URALSK AKTYUBINSK TURGAY CHELKAR GURYEV ARALSK DZHURALY KZYL - ORDA ARAL SEA KARAGANDA KARKARALINKS AYOGUZ TALDY KURGAN ALMA ATA SARY - SHAGAR KARSAKPAY FRUNZE NARYNE KASHGHAR OSHI CHIMKENT TASHKENT LENINABAD TAMDYHULAK NUKAS URGENCH BUKHARA NAVOI SAMARKAND KARSHI TERMEZ DUSHAHB FAIZABAD KHUNJERAB PASS MAZAR - I - SHARIF MARY ASHKHABAD KABUL PESHAWAR ISLAMABAD JAMMU & KASHMIR DISPUTED TERRITORY LAHORE KANDHAR HERAT MULTAN SUKKAR HYDERABAD BAM ZAHIDAN BANDAR ABBAS SHEERAZ ESFAHAN QOM TEHRAN TABRIZ ERZURUM SIVAS ANKARA ISTANBOL SHEVCHENKO KANSNOVODSK KERMAN MASHAD KARACHI GWADAR ARABIAN S E A QUETTA Ajmer Amratsar DEHLI BEIGING URUMQI Persian Gulf IRAQ KUWAIT OMAN UAE QATAR SAUDI ARABIA JORDAN SYRIA PALESTINE RED SEA EGYPT MEDITERRANEAN SEA GREECE BULGARIA BAGHDAD RIYAD MADINA AMMAN ABUDHABI MUSCAT CAIRO DAMASCUS BEIRUT GEORGIA UKRAINE MOLDAVIA ROMANIA BUCHAREST KIYEV TBILISI AZARBIJAN RUSSIA I N D I A Mumbai

5. INTRODUCTION NATIONAL HIGHWAY AUTHORITY DEVELOPING ROADS TO DEVELOPMENT NHA is a relatively new institution established under an Act of the Parliament in 1991

6. To ensure national integration through an efficient, reliable, safe and environment friendly national highway & motorway network for sustained economic growth and higher quality of life in Pakistan Operates only 4% of the Total Roads but Caters for 80% of Commercial Traffic

7. NHA’s PROGRAM High speed North - South economic corridor Linkages with Gwadar Regional connectivity Consolidation & upgradation of existing assets

8. Indian Occupied Kashmir INDIA CHINA AFGHANISTAN IRAN ARABIAN SEA Sust Jaglot Mansehra Abbotabad Haripur Chilas Burhan Fatehjhang Jand Taunsa Mianwali Sui Dera Bugti Rajanpur Larkana Talagang Pindigheb Layyah Ratodero Nag Panjgur Hoshab Turbat Jiwani Attabad Jaranwala Samundri Pir mehal Khanewal Shujabad Zahir Pir Ghotki Panuaqil Dadu Sahiwal Okara Rahim Yar Khan Chakwal Sargodha Dera murad Jamali Sibi Loralai Yakmuch Nokundi Dalbandin Padag Noshki Darya Khan Kundian Pindi Bhatian Shorkot Liari Muzaffarabad Kohala Bridge Mangla / Mirpur Dina Torkham Sarai Gambila Mughalkot Chaman Besima Raikot Thakot N-40 N-85 N-65 N-25 N-70 N-50 N-95 N-35 N-10 N-120 S-1 N-45 M-8 N-15 Boundary Main Cities National Highway Authority Rivers National Highways Motorways National Highways & Motorways Total roads (261,595 Km) NHA network (12,131 Km) Only 4 % of total roads Carries 80% of commercial traffic N-5 carries 65% of this load ProvinceKm%age Punjab2,73122.51 Sindh2,20418.17 KP1,87815.48 Balochistan4,56537.63 GB65805.42 AJK9500.78 Total12131100.00 N-5 M-9

9. INTERMODAL SPLIT Freight Traffic Passenger Traffic

10. ROAD DENSITY COMPARISON

11. Seventh pillar envisions to establish an efficient and integrated transportation system that facilitates the development of Pakistan as a competitive economy. Related targets are: Ensure reduction in transportation costs and safety in mobility, Create effective connectivity between rural – urban areas and markets. Provide high-speed inter-regional & inter-provincial connectivity Integrate road networks between economic hubs and also high- capacity transportation corridors connecting major trading partners Vision 2025

12. The China-Pak Economic Corridor (CPEC) offers a unique opportunity to Pakistan, to integrate with regional economies and become a hub for trade and manufacturing with Gwadar port, developed as an international free port. Key goals are; Make Pakistan hub of regional trade and commerce; Increase road density from 32 Km / 100 Km 2 to 64 km/100 Km 2, and share of rail from 4% to 20% of freight handling in the country. Vision 2025

13. NHA Development Program under Public Private Partnership (PPP) Repositioning NHA Transformation to Self-reliance through PPP

14.  NHA has planned to undertake a major portion of its highway development projects by financing through Public Private Partnership (PPP).  NHA is promoting public-private partnerships in order to bring skills / efficiency and to augment limited public resources from the private sector. NHA PLAN

15. NHA ACT NHA Act 1991, amended 2001, Chapter-III, Section-10(2)(xi) empowers National Highway Authority to: “Exercise power to award negotiated contracts for the projects to be undertaken through private sector financing program.” NHA PPP Policy and Regulatory Framework – Approved by National Highway Council in May 2009. PPP – LEGAL FRAMEWORK

16. Salient Features of PPP Policy INSTITUTIONAL ARRANGEMENTS Granting the service to the private sector means that the NHA has to adopt legal and institutional mechanisms to ensure that the service is provided efficiently and the responsibilities assumed by the private sector are fulfilled. ONE WINDOW OPERATION NHA has established a fully functional and dedicated PPP Cell in 2005, which on behalf of NHA, is responsible for: 1.Promotion of PPPs including providing information 2.Coordinating with relevant agencies 3.Preparing and negotiating Concession Agreements 4.Monitoring the Concessionaires performance in accordance with the respective Agreements 5.Generally safeguarding the public interest. Continued ……..

17. Salient Features of PPP Policy TOLL POLICY Concessionaires will be given the right to collect tolls at appropriate locations approved by NHA, within their specified Concession Area. TENDERING PROCEDURES 1.Tendering procedures are made open, fair & transparent consistent with NHA PPP Policy 2.Standard PQ documents, Request for Proposals including Model Concession Agreement have already been developed.

18. PPP Project Cycle

19. PPP PROJECTS – RECENT ACHIEVMENTS NHA successfully attracted private sector investment and has awarded/supported four (04) projects of worth over Rs 100.4 billion, which is more than the average annual Foreign Direct Investment (FDI) in Pakistan. Besides other benefits, the expected revenue earnings from these 4 projects is over Rs 391 billion. The details are: 1.Lahore-Islamabad Motorway (M-2), 357 KM Rs 46,007 Million Financial Close achieved. Construction has been commenced and expected to be completed in Jan. 2017. 2.Habibabad Flyover on N-5Rs 831 Million The Project has been completed within four (04) months period in April 2015. 3.Karachi–Hyderabad Motorway (M-9), 136 KMRs 44,251 Million Financial Close achieved. Construction has been commenced and expected to be completed in Dec. 2017. 4.Multan – Muzaffargarh – D. G. Khan, 80 KMRs 9,345 Million Concession negotiations are in hand. Construction is expected to be commenced in June 2016 and expected completion is June 2018.

20. PPP PROJECTS – PROCUREMENT STAGE Project Length (Km) Cost Project DetailsStatus (PKR in Mil) Improvement / widening of N-5 from M-2/N-5 junction to Wah underpass(Taxila) 206,162 Improvement of existing N-5 segment of 20 Km length to provide a fast track facility. Scope of work also includes a 6-lane flyover at railway crossing. Concession Negotiation Stage Sialkot - Lahore9142,700 Construction of 6-lane motorway, connecting industrial city Sialkot with Lahore. Proposal submission Date 23-11-2015 Pindi Bhattian - Faisalabad Motorway (M-3) & Faisalabad – Gojra Section of M-4 11010,000 Conversion of existing 4-Lane into a 6-Lane Motorway plus overlay on existing 4-lanes (Land and 6- lane structures are already available) Pre-Qualifiction Stage

21. UPCOMING PPP PROJECTS Sr. # Project Length Cost Project DetailsStatus KM (PKR in Mil) 1 Hyderabad – Sukkur Motorway 296186,490 Construction of new 6-Lane, access control Motorway Project Preparation Stage 2 Tarnol - Fateh Jang (N-80) 32 8,000 Conversion of existing 2- lane carriageway into a 4-lane, divided Highway Data gathering Stage 3 Nowshera –Peshawar (N-5) 43 10,000 Conversion of existing 4-lane divided Highway into 6-lane divided Expressway on BOT basis Data gathering Stage 4 Two Service Areas at River Kabul on M-1 -- 80 0 Construction of Two Service Areas on M-1 at the bank of River Kabul on BOT basis TOR being finalized 5 Two Service Areas on M-4 -- 70 0 Construction of Two Service Areas on M-4, Section - I. Data gathering Stage

22. Thank You National Highway Authority