Lahore Ring Road Southern Part Construction

Lahore Ring Road (Southern Loop)

Project Features

• Total Length 70.4 km
• The Project comprises of construction of Southern Loop and maintenance/operations/tolling of complete Lahore Ring Road (Northern & Southern Loops)
• Six interchanges
• 17 underpasses
• Vehicular and Pedestrian underpasses on need basis
• Southern Loop starts from Sui Gas Town and ends at Gulshan-e-Ravi (Pk-5) passing through Lahore – Islamabad Motorway (M-2) near Babu Sabu crossing Ferozepur Road at Gajju-Matta, Raiwind Road at Adda Plot and Multan Road at Maraka near Berger Paint Factory

Project Services Delivery/Economic Benefits

• Government of the Punjab will provide land for road
• The Concessionaire will provide for construction costing about 65% of the project cost
• The Concessionaire’s share shall comprise equity of 30% and commercial loan for the remaining 70%
• An interest rate of 17% has been assumed for the Loan
• The Concessionaire shall collect toll from entire Ring Road
• All construction and O&M costs shall be borne by the Concessionaire
• The loan shall be paid back by the Concessionaire in 10 equal installments
• Insurance during construction has been taken @1%
• Miscellaneous charges for loan arrangement have been taken @ 3% of the loan amount
• Price escalation at 10% has been included in Revenue and Cost Streams

Current Status
Two bids have been received from Frontier Works Organization and China Construction Company on September 30, 2013.  Lahore Ring Road Authority is evaluating the bids.

Concerned/Sponsoring Agency
Lahore Ring Road Authority (Communication & Works Department)

Project Type
Solicited for Built Operate Transfer/Built-Lease-Transfer basis

Source

Latest Update:

Lahore—FWO has been awarded the contract of construction of (southern loop) of Lahore Ring Road. Commissioner Lahore Division and Chairperson Lahore Ring Road Authority, Abdullah Khan Sumbal has said that Punjab Chief Minister Muhammad Shehbaz Sharif has directed FWO to complete southern loop of Lahore Ring Road within one year.

Due to special interest of Punjab Chief Minister, Punjab government has succeeded in saving 1.70 billion rupees in this contract, he added. He said that under public private partnership, Punjab government has played its role in viability gap financing in the construction of 30-kg long southern loop convinced FWO to complete construction work in 4.25 billion rupees instead of 5.90 billion rupees.

Abdullah Khan Sumbal told that southern loop of Lahore Ring Road consists of three sub-loops including southern-I, II and III. FWO will first start work on I and II loops which is 22 kilometer long, he added.

He said that this agreement has been given to FWO on the basis of BOT (build, operate and transfer) under public private partnership.

He said that Punjab Chief Minister Shehbaz Sharif has especially directed to complete southern loop of Lahore Ring Road within the stipulated period and ensure high standard.

It is worth mention that Punjab government has made savings of 215 billion rupees in different mega projects and saving of 1.7 billion rupees in Ring Road Project is part of campaign of Chief Minister.

Source

News Source
Dated March 31, 2016