REAgenda Item 1 Intergovernmental Agreement on Asian Highway

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NATIONAL HIGHWAY AUTHORITY
BRIEFING FOR THE CONSTRUCTION ADVISORY BOARD
BOARD OF INVESTMENT ISLAMABAD 22 NOVEMBER 2007
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(No Transcript)
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SEQUENCE

• An overview of NHA
• Strategic Context
• An Overview of NHAs Portfolio
• Private Financing

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AN OVERVIEW OF NHA
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NHA ESTABLISHED THROUGH AN ACT OF THE
PARLIAMENT IN 1991
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MISSION STATEMENT
To secure delivery of efficient, reliable, safe
and environment friendly national highway network
with a view to improve quality of life in
Pakistan.
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TASKS

• To maintain and operate the national highway
  network in worthy and safe condition at optimum
  expense, ensuring user satisfaction
• To deliver the development program as per the
  Governments policy and priority with respect to
  time and cost

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INTRODUCTION NHA

• NHA IS A CORPORATE BODY UNDER THE MINISTRY OF
  COMMUNICATIONS (MoC)
• THE NATIONAL HIGHWAY COUNCIL CONTROLS, DIRECTS
  AND REGULATES THE AFFAIRS OF NHA
• THE GENERAL DIRECTION AND ADMINISTRATION OF NHA
  AND ITS AFFAIRS VEST IN THE EXECUTIVE BOARD
• COMPOSITION AND FUNCTIONS OF NHC AND THE BOARD
  ARE GIVEN IN THE ACT
• NHA ACT, 1991, WAS AMENDED THROUGH AN ORDINANCE
  DURING THE YEAR 2001

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STRATEGIC CONTEXT
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GOPS VISION 2030

• Develop industrialized, just prosperous
  Pakistan through rapid and sustainable growth in
  a resource constrained economy by deploying
  knowledge input
• GOAL
• Achieve middle income status by 2030 with a GDP
  of around US 700 billion through sustained
  economic growth of 7-8

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OBJECTIVES

• Enhance export competitiveness
• Accelerate industrialization
• Reduce cost of doing business
• GoP recognizes transport infrastructure as a
  prerequisite for sustained economic growth and
  plan to enhance road density from 0.32 to 0.64 Km
  / km2
• Develop Pakistan as a hub of sub regional
  connectivity between high growth East Asian
  countries resource rich Middle East

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PAKISTANS GEO-STRATEGIC LOCATION
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ASIAN HIGHWAY ROUTES IN PAKISTAN
China Central Asia
Khunjrab
Pakistan-Afghanistan (AH-51), 862 Km Quetta-DI
Khan- Peshawar-Torkham
CHINA
Gilgit
AH4
Peshawar
KASHMIR
Torkham
AH1
Pakistan-Afghanistan (AH-7), 816
Km Karachi-Kalat-Quetta-Chaman
AH1
ISLAMABAD Rawalpindi
DISPUTED
TERRITORY
Hassanabdal
AFGHANISTAN
AH1
Indus River
India-Pakistan-Iran (AH-2), 1763
Km Wagah-Lahore-Multan-Sukkur Lakpass-Nokundi-Taft
an
Jhelum River
Chenab River
DI Khan
Chaman
Lahore
AH1
AH51
Wahgah
Ravi River
Quetta
AH2
India-Pakistan-Afghanistan (AH-1, 520 Km) Wagah
Lahore Rawalpindi Peshawar - Torkham
Taftan
Multan
AH2
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Setluj River
AH2
IRAN
AH2
AH7
Sukkur
Retodero
Rohri
AH4
Gwadar
Hyderabad
Kotri
Pakistan-China (AH-4), 2391 Km Karachi-Lahore-Hasa
nabdal -Gilgit-Khunjerab
Karachi
ARABIAN SEA
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RELIANCE ON ROAD NETWORK
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• MAJOR GOP INITIATIVES
• MEDIUM TERM DEVELOPMENT FRAMEWORK (2005-10)
• NATIONAL TRADE CORRIDOR (2007-14)

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THE PROGRAM

• Consolidation and upgradation of existing assets
• Linkages with Gwadar
• Regional connectivity
• High speed N-S economic corridor
• Upgradation / improvement of national highways

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OBJECTIVES OF NTC

• Reduce cargo travel time from Karachi to Peshawar
  from 72 to 36 hours
• Reduce travel cost by 10 and annual
  transportation losses from Rs 190 to 100 billion
  per year
• Reduce accident rate to 30 of current

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NATIONAL HIGHWAY NETWORK
Khunjerab Pass
Gilgit
S-1

• NHA NETWORK
• Only 4 of total network
• Carries 80 of commercial traffic
• N-5 carries 65 of this load

N-35
N-45
PESHAWAR
S-2
N-15
N-75
M-1
N-80
M-2
Indus River
CHAMAN
Jhelum River
N-55
N-50
M-3
LAHORE
M-4
Ravi River
QUETTA
TAFTAN
N-70
N-5
M-5
N-40
N-65
M-6
N-85
N-25
N-5
M-8
GABD
M-7
N-10
GWADAR
M-9
KARACHI
Hub
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NHA NETWORK REGION WISE BREAK-UP
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AN OVERVIEW OF NHAs PORTFOLIO
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(No Transcript)
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NTC PROGRAM
Khunjrab Pass
Sust
Karimabad
CHINA
PESHAWAR TORKHAM (51 Km / ADB)
Chitral
GILGIT
S-1
N-35
Sazin
Chilas
Drosh
Dasu
Skardu
Dir
Jalkhad
PESHAWAR NORTHERN BYPASS (34 Km / ADB)
N-15
N-45
Naran
Malakand
Kashmir (Disputed Territory)
Muzaffarabad
Mansehra
TORKHAM
S-2
M-1
Nowshera
Murree
N-75
Parachinar
M-1, ISLAMABAD PESHAWAR (154 Km / GOP) Ongoing
PESHAWAR
ISLAMABAD
Kohat
N-80
M-3, P/BHATTIAN -FAISALABAD (54 Km) Completed
N-5
Bannu
AFGHANISTAN
Kharian
N-55
Sarai Gambila
M-2, PINDI BHATTIAN - ISLAMABAD (243 Km)
Completed
M-2
PINDI BHATTIAN
Dera Ismail Khan
Mughal Kot
E-4, FAISALABAD - KHANEWAL (184 Km / ADB/GOP)
M-3
Malana
Wahgah
Zhob
LAHORE
FAISALABAD
N-50
Chamman
Qila Saifullah
Retra
Okara
M-4
WAZIRABAD P/BHATTIAN (100 Km / WB)
N-70
Mianchannu
Kuchlak
Multan
E-5,KHANEWAL SUKKUR (524 Km / WB)
Loralai
D. G. Khan
QUETTA
KHANEWAL
Muzaaffargarh
Mastung
N-55
Sibi
Nushki
Bahawalpur
UPGRADATION OF KKH (806 Km / GOP/China/ADB)
Dadhar
Taftan
Dalbandin
Rajanpur
Kalat
Nok Kundi
N-5
M-6, SUKKUR - SHIKARPUR (37 Km / ADB)
Nuttal
N-65
Dera Murad Jamali
N-40
Surab
Rahimyar Khan
Jacobabad
INDIA
Ubauro
SHIKARPUR
Basima
Khuzdar
N-85
IRAN
RATODERO
Larkana
M-6, SHIKARPUR RATODERO (50 Km / ADB)
SUKKUR
Nag
Wad
Kakkar
M-8
M-8
Kotri Kabir
N-25
panjgur
Moro
N-5
DADU
Turbat
Awaran
Bela
Sehwan
Hoshab
M-6, RATODERO DADU (150 Km / GOJ/GOP)
N-55
Hala
Uthal
N-10
M-7
Liari
Gabd
Hyderabad
Pasni
Jiwani
M-9
Kotri
Gwadar
Ormara
N-5
M-7, DADU DUREJI KARACHI (250 Km / ADB / GOP)
KARACHI
Thatta
ARABIAN SEA
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NTC GWADER LINKAGES
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NTC GWADER LINKAGES --- Continued
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NHA PROJECT PORTFOLIO
As on July 1, 2007
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PRIVATE FINANCING
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Objective of Private Financing

• NHA is responsible for managing the design,
  development and operation of the national
  highways, motorways, tunnels and bridge
  infrastructure in Pakistan.
• Fiscal budget allocations alone would not be
  sufficient to cater for the set targets and need
  to be supplemented by OFF BUDGET FINANCING.

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PPP Objectives

• NHA is promoting Public Private Partnerships in
  order to bring skills/efficiency and to augment
  limited public resources from the private sector.
  
• NHA is planning an amount of Rs. 41 billion of
  private sector participation in highways, tunnels
  and motorways in the next five years.

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DEVELOPMENT PORTFOLIONHA 2015 PLAN F.Y 2007-08
to 2014-2015
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Steps Taken by NHA to Promote PPPs

• Establishment of Private Sector Cell
• Standardization of Procedures
• Standardization of Bidding Documents (RFPs)
• Standardization of Concession Agreement
• Revision of Policy Frame Work

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TYPICAL BOT PROCESS
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Phases of a BOT Project
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Present Organization of Private Sector Cell
General Manager (BOT)
Director (PSC)
Assistant Director (PSC-I)
Assistant Director (PSC-II)
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Functions of Private Sector Cell

• Planning Phase
• Projects identification appraisal
• Procurement of Concessionaires
• Finalization of Concession Agreements
• Financial Close activities
• Construction/ Operations Phase
• Performance monitoring
• Contract administration
• Technical Financial Audits

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PROCUREMENT

• Selection of the Concessionaire follows the
  transparent and competitive procedure that has
  been developed under the ADB-financed SSTA.
• NHA also uses the standardized Request for
  Proposal (RFP), evaluation criteria and draft
  Concession Agreement prepared under the SSTA.

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NHA BOT PROJECTS
Khunjrab Pass
Sust
Karimabad
CHINA
Legend
Chitral
RAWALPINDI BYPASS
GILGIT
S-1
National Highway Motorway (Operational) Motorway
(Under construction) National Capital Provincial
Capital City/Town Provincial Boundary Internationa
l Boundary
N-35
Sazin
Chilas
Drosh
Dasu
Skardu
Dir
Jalkhad
N-15
N-45
Naran
Malakand
Kashmir (Disputed Territory)
Muzaffarabad
Mansehra
Torkham
N-75
M-1
Nowshera
Murree
Parachinar
PESHAWAR
ISLAMABAD
Kohat
N-80
Rawalpindi
N-5
Bannu
Kharian
N-55
Sarai Gambila
AFGHANISTAN
M-2
Pindi Bhattian
SHAHDARA FLYOVER
INDIA
Dera Ismail Khan
Mughal Kot
M-3
Malana
Wahgah
LAHORE
Zhob
Faisalabad
N-50
Chamman
Qila Saifullah
Retra
Okara
M-2 RE-ALIGNMENT OVERLAY
M-4
N-70
Mianchannu
Kuchlak
Multan
MUZAFFARGARH D.G KHAN SECTION (N-70)
Loralai
D. G. Khan
QUETTA
M-5
Muzaaffargarh
Mastung
N-55
Sibi
Nushki
Bahawalpur
Dadhar
Taftan
Dalbandin
Rajanpur
Kalat
Nok Kundi
N-5
Nuttal
N-65
Dera Murad Jamali
N-40
Surab
M-6
Rahimyar Khan
Jacobabad
Ubauro
Shikarpur
LAKPASS TUNNEL
Khuzdar
Ratodero
D.G Khan RAJANPUR (N-55)
IRAN
Sukkur
Larkana
Wad
Kakkar
KARACHI HYDERABAD (M-9)
M-8
Kotri Kabir
N-25
M-7
Moro
Dadu
N-5
Sehwan
Awaran
Bela
Hoshab
Turbat
N-55
Hala
Uthal
N-10
Liari
Gabd
Hyderabad
KARACHI NORTHERN BYPASS
Pasni
Jiwani
M-9
Kotri
Gwadar
Ormara
N-5
KARACHI
Thatta
ARABIAN SEA
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STATUS SUMMARY p-1
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STATUS SUMMARY p-2
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RECOMMENDATIONS I

• Commitment, coordination and Support.
• Developing PPP Option Analysis toolkits.
• Policy Framework.
• Package of Incentives.
• Cross sectoral PPP law.

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RECOMMENDATIONS II

• Viability Gap funding Guarantees Mechanism.
• Development of risk management tools.
• Capacity Development.
• Local - fixed rate long term Rupee based
  financing.
• Organizational financial sustainability.

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THANK YOU