Potential Projects in Pipeline for Private Sector Participation

  • 1. Cool Chain System under National Trade Corridor:

Horticulture sector contributes about 12% to the national agricultural GDP of Pakistan, and holds great potential for increasing export of quality horticultural produce, and offering multiple employment opportunities throughout the supply chain. However, its growth & profitability is restrained mainly by lack of proper post harvest management and transport infrastructure. Out of 13.67 million tones of fruits and vegetables produced annually, about 25% goes waste, between farms to consumers, while only 4% is exported at far lower price (41%) compared to world average price. Improving post harvest management infrastructure (grading, packing, storage and transport/cold-chain) will help reduce high post harvest losses, increase production surplus along with improving shelf life and quality of fresh produce, which will help to stabilize prices in domestic markets as well as to substantially boost export to highly lucrative and competitive international markets. Keeping in view the importance of the cold chain, Pakistan Horticulture Development and Export Board (PHDEB) - Ministry of Commerce, has decided to “Establish a Cool Chain System” under “National Trade Corridor Improvement Project”. The Cool Chain project is bound act as a back bone for the development of supply chain infrastructure for horticulture produce.

The Cool Chain System will be comprised of the following three components:

    • – Cold Stores: Used for maintaining the temperature of fruits & vegetables. A total of 23 independent cold stores are proposed to be built under the CCS project. These stores are proposed for 5 different fruits and vegetables at 9 production centers, 4 different fruit and vegetable markets and 10 exit point covering all major air and sea ports
    • – Pack Houses: It facilitate washing, grading, sorting and packing of fruits & vegetables to prevent the produce from being contaminated. A total of 39 pack houses with cold storage facilities are proposed to be built for 8 different fruits and vegetables at major crop growing regions.
    • – Reefer Yards: Parking facility for refrigerated and controlled atmospheric containers used to transport produce from one place to another. A total 2 reefer yards would be established one each in the city of Karachi and Lahore

The estimated cost of the total project is approximate US $ 153 million. Whereas two Projects are planned to be rolled-out in two clusters i.e. “Baluchistan – Sindh” and “Punjab - NWFP” which will collectively become the Cool Chain System. Each cluster has its own size, market and cost structure.

    • – Baluchistan – Sindh Cluster: This cluster is the mixture of three components of the CCS which includes 10 Cold stores, 15 Pack houses and 1 refer yard in Karachi. Pack houses and cold stores will be developed at various locations in this cluster. Crops to be entertained under this cluster include Apple, Peach, Apricot, Plum, Grapes, Dates, Onion and Mango. Approximate Cost of this Project is US $ 61 million.
    • – Punjab – NWFP Cluster: This cluster is the mixture of three components of the CSS which include 13 Cold stores, 24 Pack houses and 1 refer yard in Lahore. Pack houses and cold stores will be developed at various locations in this cluster. Major crops in this cluster are Orange, Mango, Potato and Apple. Approximate Cost of this Project is US $ 92 million.

Status:

Feasibility study is completed and the project will be taken to the market for private sector after the approval of security package.


  • 2. Faisalabad Solid Waste Management Plant:

Rapid growth of urban population in Pakistan and a rising trend of migration from rural to urban areas of the country have posed additional demands on the existing infrastructure of these populous cities, resulting in uncontrolled urban sprawl, deteriorating environment, and constantly declining standard of urban services. As City District Governments strive to improve access of common person to necessities like water and sanitation, their financial and institutional capacity also needs to be enhanced in tandem. These governments need to be efficient and financially stable to improve the sanitation systems of their respective cities for a burgeoning population. At present, solid waste management in the majority of urban towns is at best rudimentary, thus requiring the development and implementation of state of the art systems customized to the requirements of city. Realizing the deficiencies in basic infrastructure inhibiting economic growth, Government of Punjab has accorded high priority to providing an integrated sustainable community based Solid Waste Management System. With a growing population like the other major cities of Pakistan, Faisalabad also faces an urban problem of inadequate solid waste management. CDG-F, the implementing agency, intends to rectify all these problems from its urbanized areas, comprising of four towns namely, Jinnah Town, Lyallpur Town, Iqbal Town and Madina Town, through private sector participation in the development and implementation of an integrated solid waste management project under the PPP modality. These four towns have an approx population of 2.78 Million and an area of approx 1,351 square kilometers. Approximate cost of this project is US$ 15 million.

Status:

Pre-qualification of investors conducted.

  • 3. Lahore Southern Bypass from Motorway to Ferozepur Road:

Traffic Engineering & Transport Planning Agency (TEPA), Lahore Development Authority (LDA) intends to develop Southern Bypass as a strategic, high speed and access controlled road for Lahore city. The development of Lahore Southern Bypass is a major component of Lahore Master Plan approved in 2002. The proposed Bypass will ultimately join Ferozpur Road at one end and the Motorway close to Niaz Baig Village on the other, besides further connectivity with the proposed Southern loop of the Lahore Ring Road. The implementing agency envisioned the proposed project to be completed through Public Private Partnership Regime.

Proposed length of the project is 16 KMs. The Conceptual Design of the Project includes six lanes divided Highway with controlled access having two lanes Service Roads with the proposed right of way of 200 ft including Interchanges, flyovers and Crossover Structures wherever required to maintain free flow on the proposed road. The total approximate cost of the project is US$ 25 million.

Status:

Technical feasibility study is completed and financial feasibility is being undertaken.

  • 4. Pakistan Institute of Medical Sciences (PIMS) Projects:

PIMS intends to structure following projects on Public Private Partnership basis.

Institute of Dentistry: A state-of-the-art dental treatment facility as well as a teaching, training and research center to be established within the premises of Pakistan Institute of Medical Sciences (PIMS). Approximately 128,000 patients would be treated per annum in this facility. Total cost of the project is approximately around US$ 7 million.

Status:

Feasibility study is being undertaken.

Center for Liver Diseases and Organ Transplantation (CLOT): A viable and sustainable liver transplant center to be established within the premises of PIMS. Total cost of the project is approximately around US$ 6 million.

Status:

Feasibility study is being undertaken.


5. Flyover /Railway Overhead Bridge at Habibabad (Wanradha Ram at Km 1168-1169 of the National Highway N-5)

Approximate Project Cost Estimates: US$ 7 Million

National Highway Authority (NHA) aims to develop six (6) lanes Flyover /Railway Overhead Bridge at Habibabad (Wanradha Ram at Km 1168-1169 of the National Highway N-5) along new alignment under Public Private Partnership Modality. The proposed expressway is a part of National Highway N-5, which is the main artery of Pakistan road network and connects seaports with other parts of the country to enhance the potential for increased international trade traffic.

It is envisaged that Flyover /Railway Overhead Bridge at Habibabad (Wanradha Ram) would be built under the Public-Private Partnership (PPP) modality with the private party given a concession for a pre-determined period to design, finance, construct, operate and maintain the project. The total length of the bridge is 1 km. Moreover, 1 km approach road on either side will also be built. Infrastructure Project Development Facility (IPDF) is assisting NHA in the development and implementation of this project.

Status:

Pre-feasibility study is completed and detailed feasibility study is being undertaken.

  • 6. Karachi Circular Railways (KCR)

Approximate Project Cost Estimates: US$ 1.54 billion

KCR was opened for traffic in two phases in 1964 and 1970. Over the 15 years of its operations it gradually lost its rider-ship due to longer travel time and delays. Numbers of trains were gradually reduced and KCR was closed in Dec. 1999.

It has been decided by Government that KCR be revived as a modern commuter system and KUTC was set up for its implementation/operation.

It is envisaged that a private operator will be appointed to take over the O & M of KCR under a concession similar to the Mass Rail Transit models like Singapore Mass Rail Transit (SMRT), a PPP success story.

KCR will cater to 28 stations with a route length of 43.1 KM (Stage-1, Stage-II & Stage-III)

Status:

Project was approved by ECNEC and third Party validation is being undertaken. O&M Component of the project will be offered to the private sector.

  • 7. Environment-Friendly CNG Buses

Govt. of Pakistan intends to introduce 8000 CNG buses in nine mega cities of Pakistan (Karachi, Lahore, Rawalpindi/Islamabad, Faisalabad, Multan, Quetta, Hyderabad, Peshawar, and Gujranwala) to provide efficient, environment-friendly and affordable transportation.

This initiative would initially be launched in Karachi in collaboration with the Govt. of Sindh and the City District Government of Karachi by inducting 4,000 environment-friendly CNG buses within the next five years in a phased program on public-private partnership basis. 500 CNG buses would be introduced in Karachi during the first year.

The Government has agreed to provide and allocate a sum of Rs. 677,181.00 (Rupees Six Hundred Seventy Seven Thousand One Hundred Eighty One Only) as subsidy to be provided to the Operator against the purchase of each CNG bus in the following manner:

Upfront payment of Rs.300,000 (Rupees Three Hundred Thousand Only); and

Payment of Rs.377,181 (Rupees Six Hundred Seventy Seven Thousand One Hundred Eighty One Only) as interest subsidy payable in 60 (Sixty) equal installments in five years.

Status:

The project was launched in the market and the private operators have been selected.

  • 8. Charsadda Solid Waste Management System

Approximate Project Cost Estimates: US$ 1.1 million.

The government of Pakistan is committed to providing an integrated community-based Solid Waste Management system which is self sustainable through recycling of municipal waste. As part of the overall NUDP program, Charsadda Solid Waste Management project has been identified as a pilot project which, if successful, can be used as a model for other projects for provision of Solid Waste Management system in those towns and tehsils that have a population in excess of 20,000.

The city administration wants to explore public-private partnership opportunities in implementing this solid waste management project. The area of the Project is about 310 ha. The 1998 population of the Project area is estimated at 55,200 persons, or 65.5 % of the total of 84,300 persons for the whole municipality. Project includes improvements to the existing Solid Waste Management system by incorporating better mechanisms of waste management.

The main objectives of the Project are:

  • · Collection of waste from urban areas and appropriate disposal at identified landfills
  • · Improving public awareness and community participation towards the waste management systems and ecology, including both the domestic and commercial cleanliness
  • · Establishment of effective and efficient waste management systems by leveraging suitable technologies

Status:

RFP will be floated as soon as security situation improves in the area.

  • 9. Hydropower Projects

Lower Spat Gah: A 567 MW power project located at Lower Spah Gah which is the left bank tributaries of the Indus River in Kohistan district, N.W.F.P. The project is located 365 Km from Islamabad. The technical feasibility for this project is being conducted by an international consultant. The estimated cost of the project is USD. 614 Mln.

Status:

Technical feasibility study completed and financial structuring will be undertaken.

Lawi: A 70 MW power project located on the right bank of the Shishi River which is a left tributary of Chitral River. The project is located 550 Km from Islamabad. The technical feasibility of the project is being done by KfW. The estimated cost of the project is USD. 120 Mln.

Status:

Technical feasibility study completed and financial structuring will be undertaken.

  • 10. Higher Education Commission

Hostel Facility at COMSATS, Islamabad: IPDF is assisting COMSATS and HEC in setting up a hostel facility at COMSATS for its students under the PPP modality.

Status:

Feasibility study is being conducted.

Medical College at Quaid-e-Azam University, Islamabad: HEC wants to setup a new medical teaching facility at QAU. IPDF will help QAU setup this facility on PPP basis.

Status:

Feasibility study is being conducted.

  • 11. Reconstruction / Rehabilitation Of Islamabad Water Supply

CDA, to address the two issues of water loss and the growing water demand-supply gap has proposed the development of new perennial sources to add water to the system and to upgrade the already laid, out-lived system and control for leaks and non-revenue water.

Status:

Feasibility study to be undertaken.

  • 12. Solar Street Lights

IPDF is working with CDA and LDA on a proposal to convert street lights of Islamabad and Lahore to solar powered street lights.

Status:

Feasibility study to be undertaken.

  • 13. Solar Thermal Power Plant

Feasibility study to be undertaken on setting up a solar thermal power plant on PPP modality.

  • 14. Operating Cargo and Oil Trains

Pakistan Railway with the help of IPDF will try to attract private sector to bring rolling stock for the running of cargo oil trains on Pakistan Railways track by paying track access charges under open track access policy.

Status:

Feasibility study is being conducted.

  • 15. Sundar Logistics Hub

Development of logistics industry is considered as an important aspect of trade facilitation and increased competitiveness. IPDF is working with National Trade Corridor and the Planning Commission to setup a logistics hub near Sundar Industrial Estate.

Status:

Due diligence of feasibility study is being conducted.

  • 16. LESCO

LESCO with the help of IPDF is contemplating on implementing a smart prepaid meter program in Lahore.

  • 17. Power Generation System For University Of Karachi

The project consists of installation of self generation electric power plant (7M) to ensure uninterrupted power supply to the university research center and labs as well as residential colonies, reducing tremendous monthly bills to KESC. Presently IPDF is trying structure this project on PPP modality.

Status:

Feasibility study to be conducted.

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Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political disputes and low levels of foreign investment. Between 2001-07, however, poverty levels decreased by 10%, as Islamabad steadily raised

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