PRESENTATION TO THE PRESIDENT OF ISLAMIC REPUBLIC OF PAKISTAN

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PRESENTATION TO THE PRESIDENT OF ISLAMIC
REPUBLIC OF PAKISTAN
BYPLANNING COMMISSION NOVEMBER 19, 2004
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Karachi Mass Transit System
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EFFORTS MADE IN THE PAST

• Several studies were carried out from time to
  time none materialized
• 1950-52 MRVP First Master Plan of Karachi
• 1971-74 Master Plan of Karachi (UNDP)
• 1974-78 Rapid Transit Study
• 1975 JICA report on KCR
• 1987-90 Karachi Mass Transit Study (World Bank)
• 1990-91 KCR Feasibility Study (JARTS)
• 1990-91 Karachi Development Plan 2000
• 1992-93 Detailed Eng/FS of Priority Corridor-2
  (Sogelberg)
• 1992-94 Detailed Eng/FS of Priority Corridor-1
  (KMTJV)
• 1996-01 Light Rail Project Priority Corridor-I
  (SNC-Lavalin)
• 2001-02 Study on Revitalization of KCR

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KARACHI TRANSPORTATION SYSTEM SITUATION ANALYSIS

• ABSENCE OF INTEGRATED PLANNING
• Different agencies working independently
• Road expansion, Interchanges, grade separations
  flyovers by the Sindh Government
• KMTP being perused by the City Government
• KCR being revitalized by Pak. Railways
• NEED FOR CENTRALIZED COORDINATED EFFORTS
• Urban Transportation is a provincial subject but
  the Size and Magnitude require help from
  Federation.
• GOAL
• Provision of a quick and respectable mode of
  Transportation

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TRAFFIC PATTERN SOLUTIONS
STATUS
SOLUTIONS
TRAFFIC PATTERN
Under Construction

• INTERCITY INTER ZONAL
• Northern By Pass
• Lyari Expressway
• Southern By Pass

• INTER CITY
• Port Cargo
• Oil Tankers
• Passengers

With proper interconnections

• INTRACITY
• Karachi Circular Railway
• Karachi Mass Transit
• Busways

• INTER ZONAL
• Landhi - Clifton - Site
• Defence-I.I.Chundrigar Road
• Nazimabad-I.I.Chundrigar Road

• INTRA CITY
• Work Trips
• House Trips

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Super Highway
KCR
Lyari Expressway
Southern Bypass
Corridor IV (20.5 km) Karachi Cantt. to
Landhi Corridor V (14.5 km) Nagan Chowrangi to
Korangi Corridor VI (9.8 km) Baldia Township
to Tower
Corridor I (15.2 km) Sohrab Goth to
Tower Corridor II (12.0 km) Orangi Town to
Cantt Station Corridor III (15.4 km) North
Nazimabad to Banaras Chowk
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KARACHI TRANSPORTATION SYSTEMAvailable
Options(Based on Recent Offers)

• Light Rail Transit Through Credit Financing
• MagLev- Through BOT

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BOT EXAMPLES IN ASIA
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BOT EXAMPLES
Loans, Export Credits from Germany equity
holdings
pphpd passengers per hour per direction
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BOT EXAMPLES
pphpd passengers per hour per direction
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MAJOR MANUFACTURERS OF LIGHT RAIL TRANSIT SYSTEMS
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MANUFACTURERS OF LRT SYSTEM

• ALSTOM, France.
• Bombardier Transportation, USA.
• GE Transportation, USA.
• Kawasaki Heavy Industries (KHI), Japan.
• Siemens Transportation Systems, Germany.

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MODES OF FINANCING
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MODES OF FINANCING
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CHRONOLOGY OF ACTIVITIES SINCE JANUARY 2003
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• January 2003 District Government Karachi (CDGK)
  invited Expression of Interest based on following
  technologies
• i. Mono Rail
• ii. Light Rail
• iii. Magnetic Levitation
• March03 22 Intl. firms applied for
  Pre-Qualification
• June 2003 Following 7 firms were pre qualified
  i. M/s Mtrans of Malaysia ii. M/s Metrail of
  UK iii. M/s Dongfang Electric Corp. of
  China iv. M/s CNMEG of China v. M/s American
  Maglev of USA vi. M/s IDC of Pakistan
• vii. M/s Inter Globe Pvt. Ltd. Of Pakistan

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• July 2003 M/s CNMEG informed the CDGK that they
  would submit proposal on credit financing basis
  and not on B.O.T basis.
• September 2003 Governor Sindh and CNMEG signed
  M.O.U. for Corridor-II of KMTP.
• January 2004 Bids opening by CDGK. Only two bids
  received One from M/s CNMEG with bid bond of US
  1.0 million but on Credit financing - the other
  from M/s American Maglev Technologies (AMT) on
  BOT basis.

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• The B.O.T. proposal of M/s AMT worth US 289
  million was held in suspension by CDGK on the
  following reasons
• Maglev system was not a tested proven.
• Bid bond of US 1 million not provided.
• Demand for commercial development of stations and
  granting of license for telecom, wireless,
  internet communication free of cost and ridership
  guarantee.
• BOT process was over but not officially annulled.

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• 13th May 2004 Preliminary agreement signed
  between CDGK and the Chinese firm CNMEG on
  following terms condition Total project
  cost US 569.40 million. Financing 90
  through credit 10 local funding
  Completion Time 4 ½ years Repayment
  period 15 years including 3 years grace
  period. Rate of Interest 3.5 annual
• Insurance 5 of Contract Amount

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• May 2004 the CDGK sought financial assistance
  from the GOP to the extent of US 60 million to
  be paid as down payment to the Chinese firm.
• 15th July 2004 Meeting convened by Planning
  Commission to explore off-budget financing for
  the project. City Nazim, the then Chief Secretary
  Sindh, Secretary Communications, Secretary BOI,
  Secretary Planning, Secretary Railways and
  Chairman NHA attended the meeting.

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• The meeting observed that CDGK without annulling
  the BOT process had signed the preliminary
  agreement with CNMEG on credit financing on
  negotiation basis.
• A Committee under Secretary BOI set up to discuss
  with already pre-qualified bidders for
  finalizing required comforts/ incentives to
  attract BOT financing.

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• M/s Metrail and M/s Infrastructure Development
  (M/s IDC) asked for following comforts
• Ridership guarantee
• Facilitation for loans,
• Unhindered provision of utilities (gas water
• Exemption from taxes duties,
• Permission for commercial exploitation of
  stations,
• Free of cost right of way (ROW) and land for
  marshalling yards.

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COMMITTEES RECOMMENDATIONS

• Public Private Financing including construction,
  operation and maintenance may be explored to
  reduce burden on the exchequer.
• Appropriate comforts should be provided and BOT
  process be pursued to reduce burden on PSDP.

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 COMPARISON OF BOT CREDIT FINANCING OFFER
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MAGLEV TRANSPORTATION
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WHAT IS MAGLEV ?

• Maglev means MAGnetic LEVitation
• Use of wheels is replaced by magnetic fields
• Maglev vehicles are capable of much higher speeds
  and acceleration
• No moving parts Low OM

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EVOLUTION OF MAGLEV
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EVOLUTION OF MAGLEV
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EVOLUTION OF MAGLEV
COST High-speed trains 40-80 million/Km
American Maglev technologies under 20
million/Km
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SHANGHAI AIRPORT LINK
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• Transrapid Maglev Train on its first commercially
  operated route worldwide from Shanghais Long
  Yang Road to the Pudong International Airport was
  made on December 31, 2002.
• Shanghai Transrapid set up a new world record on
  November 12, 2003 with a speed of 501 km/h (311
  mph) for commercial railway systems. On 3rd July
  2004, one millionth passenger boarded the train.

On board Chinese Prime Minister Zhu Rongji,
German Chancellor Gerhard Schröder and other
high-ranking politicians and business people of
both countries
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SHANGHAI AIRPORT LINK PROJECT DATA
Route Length 30 km double track Link to
maintenance facilities 3 km single
track Stations 2 Number of vehicles in 2003 3
vehicles each with 5 sections Traffic Volume
in 2005 10 million passengers in 2010 20
million passengers in 2020 33 million
passengers Travel speed (max.) 430 km/h Trip
time 8 minutes Headway 10 minutes (option 5
minutes) Daily operation 18 hours
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TRANSRAPID PROJECT MUNICH
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WHO STANDS BEHIND AMERICAN MAGLEV?

• American Maglev Technology
• Patents to the technology / site management
• Dominion - Virginia Power
• Provide power equipment and site power
• Lockheed Martin
• Design vehicles, guide rails, system controls,
  system integration, system tests
• Old Dominion University
• First Customer

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SPECIFIC ENERGY CONSUMPTION
(MagLev)
(MagLev)
(MagLev)
ICE (Intercity Express trains)
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Implementation Options
HOW TO PROCEED
days
Option-A
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BT/BTO(Public Financing)
BOT(Private Financing)
Option-B
80
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Option-C
115
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Feasibility Study
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60
Call offer from PQ bidders
Call JV of AMT IDC
160
205
Float International Tenders
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PQ Evaluation of Bids Negotiate Final Deal
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How to Proceed - Selection of Operator
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Pre-qualify Operators
48m
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BUILD
Call bids for operation
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Award operations
Transfer
Operate
90 days
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Options (Min. Time for Agreement )
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BOT-GUARANTEES COMFORT REQUIRED
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Thanks