PROJECT INFORMATION MEMORANDUM

FOR

THE SOUTHERN BYPASS PROJECT

(From College Road to Ferozepur Road), LAHORE
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TABLE OF CONTENTS

1. INTRODUCTION: LAHORE, AN OVERVIEW 3

1.1. PROJECT INFORMATION 3

1.2 SALIENT FEATURES OF THE PROJECT 3

1.3 PROJECT BENEFITS 5

2. SCOPE OF WORK 7

2.1 RESPONSIBILITIES OF THE PRIVATE PARTY 7

2.2 INSTITUTIONAL ROLE OF THE LAHORE DEVELOPMENT AUTHORITY (LDA) 8

2.3 INSTITUTIONAL ROLE OF THE URBAN UNIT 8

2.4 INSTITUTIONAL ROLE OF IPDF 9

3. ECONOMIC BENEFITS OF THE PROJECT 10

4. BID EVALUATION PROCESS 13

4.1 CRITERIA FOR EVALUATION OF PROPOSAL 13

4.2 EOI DOCUMENTATION PACKAGE 15

5. SOURCES 16

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1. INTRODUCTION: LAHORE, AN OVERVIEW

Lahore is the second most densely populated city of Pakistan after Karachi. Capital of Punjab
province, it is indeed a cultural, social and political hub, generating a lot of human activity in its
vast landscape. The population of Lahore is around 8 million, and growing at 3.22% per year; by
2030 the population is estimated to be around 13 million. Lahore has an international airport and
railway station, which make the city accessible for business and leisure. In addition, the historical
Grand Trunk Road (G.T. Road) and the Lahore-Islamabad Motorway (M-2) connect the city with
the rest of Punjab. Despite considerable work done to build the necessary infrastructure to
facilitate its increasing traffic, a lot needs to be accomplished in terms of planning, management
and timely resource allocation, to ensure a smooth traffic flow inside the city metropolis.

1.1. PROJECT INFORMATION

The Government of Punjab has proposed various projects to provide smooth and convenient
inlets to different parts of the city. Southern Bypass Project is one such project.

The project is aimed to divert much of the traffic load coming from Kasur by providing a
convenient passage from Ferozepur Road towards Thokar Niaz Beg and the Motorway. This
road will also divert heavy amounts of traffic inbound from Thokar Niaz Beg, offering quick
accessibility to Ferozepur Road instead of creating a wider loop passing through city centre.
Although much of the Southern Bypass road is fully operational for traffic, the road link from
College Road junction up to Ferozepur Road (Approx.7 km) has yet to be constructed. To
implement it in a timely manner the Government of Punjab has proposed to construct this road
on Public Private Partnership (PPP) basis.

1.2 SALIENT FEATURES OF THE PROJECT

The Traffic Engineering and Transport Planning Agency (TEPA), Government of Punjab has
already constructed the Southern Bypass road from Canal intersection to Satto Katla
Drain/College Road intersection.

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Presently Lahore Development Authority and Urban Unit, P & D Department, Government of
Punjab are planning to link the bypass road from College Road intersection to Ferozepur Road.
This link will consist of 7 km, 3-lane dual carriageway with 24-feet wide service road on both
sides. This road link will ensure a convenient and faster traffic flow from Kasur to Thokar Niaz
Beg and vice versa. Simultaneously; this link will also provide a convenient access from housing
colonies i.e. Madina Town, Shadab Colony and Wapda Town etc. towards important urban
centers e.g. Kot Lakhpat, Shaukat Khanum Hospital, Expo Center etc.

Additional features of the project:

• According to NESPAK Feasibility study, in 2008 the Average Daily Traffic (ADT) along
the Expo Center Road was 142,395.
• Toll collection will be the major source of revenue for the private party along with yields
from advertisements and billboards.
• The overall project size: Approx. Rs. 5.3 Billion is considered to be implemented through
Public Private Partnership on the basis of Design, Build, Finance, Operate and Transfer
(DBFOT).
• The information relating to concessions will be provided at the stage of issuing Request
for Proposals (RFP)

The project consists of:

1. Southern Bypass Link- 7 Km (from College Road to Ferozepur Road)

I. Construction of 3-lane dual carriageway flanked by 24 ft. service road

II. Construction of 3-lane dual carriage way flyover across Khaira Colony and Railway
line
III. Construction of underpass at College Road intersection.

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2. Southern Bypass Road (From Canal View to College Road) 1

I. Construction of Traffic Interchange at Shaukat Khanum Hospital Chowk,

Khayaban-e-Jinnah Road.

3. Establishment of Toll Collection Infrastructure

I. Construction of Toll Collecting infrastructure at designated locations of the project

1.3 PROJECT BENEFITS

The major socioeconomic benefits of the project include:

I. Savings in Vehicle Operating Costs (VOC) and maintenance costs

II. Decrease in travel time and traffic congestion
III. Reduced strain on accident and emergency response system
IV. Smoother and safer intra-city travel
V. Increase in economic activities
VI. Increase in land values
VII. Increase in employment opportunities during construction and post-construction
period
VIII. Additional revenue via toll collection

In addition, The Southern Bypass Project will:

I. Provide easy and smooth access to the traffic coming from Kasur and Thokar Niaz
Beg by avoiding the long and cumbersome route involving city centre and other
high volume traffic bottlenecks.
II. Maintain standards of safety and speed and divert the traffic equitably, which may
reduce the economic cost of travel on the aforementioned traffic routes.

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The location, type and design of the Toll Collecting infrastructure will be decided in accordance with the consent
of LDA.

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III. Reduce traffic load from the areas of high activity, providing ample capacity on the
main boulevards to cater for the prospective growth in the city traffic.
IV. Complete the Southern Bypass Road project; so that its overall purpose and potential
can be utilized.
V. Interconnect high activity centers like the Expo Centre, Kot Lakhpat Industrial Area,
Shaukat Khanum Hospital with various housing colonies of the city like Madina
Town, Shadab Colony etc.
VI. Constructing the new link (between College Road to Ferozepur road) will maximize
the utilization of the Southern Bypass Road and yield utmost benefits from this
project. As mentioned, the Government of Punjab has already constructed the road
link from Canal View to College Road. The new link will reduce the distance
between Ferozepur Road and Thokar by 7 Km. The Lahore intra-city traffic will also
benefit from the reduced distance in terms of savings in time, energy and
maintenance costs.

The implementation of The Southern Bypass project on Public Private Partnership (PPP)
basis will resolve the immediate problem of financing this project from scarce government
resources and ensure timely and efficient implementation of this project.

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2. SCOPE OF WORK
2.1 RESPONSIBILITIES OF THE PRIVATE PARTY
The private party will be responsible for the overall implementation of the project, including but
not limited to, the Design, Build, Finance, Operation and Maintenance functions of the overall
project. As mentioned above, project activities include:

1. Southern Bypass Link- 7 Km (from College Road to Ferozepur Road)

I. Construction of 3-lane dual carriageway flanked by 24 ft. service road

II. Construction of 3-lane dual carriage way flyover across Khaira Colony and Railway line
III. Construction of underpass at College Road intersection

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2. Southern Bypass Road (From Canal View to College Road)

I. Construction of Traffic Interchange at Shaukat Khanum Hospital Chowk, Khayaban-e-

Jinnah Road.

3. Establishment of Toll Collection Infrastructure

I. Construction of Toll Collecting infrastructure at designated locations of the project

The private party (with the consent of LDA and within the ambit of law and policies of The
Government of Punjab) shall procure, own, operate and maintain billboards planned on the 7 Km
bypass road from College Road to Ferozepur Road.

In order to estimate the designing cost of The Southern Bypass project, private parties are
encouraged to visit the project location.

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The location, type and design of the Toll Collecting infrastructure will be decided in accordance with the consent
of LDA

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2.2 INSTITUTIONAL ROLE OF THE LAHORE DEVELOPMENT

AUTHORITY (LDA)

The LDA is a government body created under the LDA Act,1975 which is responsible for new
planned development in Lahore. It is the principal planning and development vehicle of the
Lahore Metropolis, designed to provide and improve city development works and facilities.

LDA also acts as a regulatory body for new constructions carried out by its three wings—The
Urban Development Wing, Water and Sanitation Agency (WASA), and Traffic Engineering and
Planning Agency (TEPA).

The Urban Development Wing is responsible for the planning, designing and development of
various projects in accordance with the functions of the Development Authority. TEPA was
created as a subsidiary agency for the planning, designing and development of Traffic and
Transport System Roads & Projects in Lahore. WASA deals with the planning, designing and
development concerning water supply, sewerage and drainage system in Lahore.

2.3 INSTITUTIONAL ROLE OF THE URBAN UNIT

The Urban Unit has been established since March 2006 as a Project Management Unit within the
Planning and Development Department of the Government of Punjab. Presently the Urban Unit
is spearheading the development of projects in multiple sectors—Solid Waste Management,
Geographic Information System (GIS), Municipal works, Urban Planning, Water & Sanitation
and Transport Sector.

Urban Transport sector at the Urban Unit is committed to contributing towards the Government
of Punjab’s vision 2020 that envisages developing the urban areas of Punjab as the engines of
growth and sustainable development. It envisions an integrated transport system and is striving to
overcome prevailing issues of regulatory oversight, lack of engineering standards and
specifications, low level of institutional capacities and technical expertise, dependence on
obsolete technologies and equipment, and inefficient traffic solutions and poor traffic
management. The sector focuses primarily on policy and strategic planning of transport for the

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cities of Punjab. Apart from carrying out analytical and reform work for transport system in
Punjab, The Urban Unit works with important stakeholders and general public, hosting
workshops and seminars to share its vision.

2.4 INSTITUTIONAL ROLE OF IPDF

The Government has set up The Infrastructure Project Development Facility under the Ministry
of Finance with Board of Directors headed by the Minister of Finance. IPDF is tasked to provide
easy and timely access to institutions to ensure that viable good quality PPP deals are concluded
in a timely manner.

IPDF has the following responsibilities:

I. To help facilitate the promotion, generation and implementation of PPP projects by

the contracting authorities, in order to increase the number and volume of PPP
infrastructure transactions.
II. To provide guidelines to public sector implementation agencies, private sector
sponsors, financers and advisors, in order to create an enabling policy
environment and provide hands-on knowledge transfer to the pubic implementing
agencies. (For information and guidelines on PPP, please visit IPDF at
www.ipdf.gov.pk.)

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3. ECONOMIC BENEFITS OF THE PROJECT

Following are some of the economic benefits of the Project:

Constructing the new link (between College Road to Ferozepur road) will maximize
the utilization of the Southern Bypass Road. As mentioned, the Government of
Punjab has already constructed the road link from Canal View to College Road. The
new link will reduce the distance between Ferozepur Road and Thokar by 7 Km.
The Lahore intra-city traffic will also benefit from the reduced distance in terms of
savings in time, energy and maintenance costs.

Table 1 (Economic Value of Time Saving)3 Rs. Million

Motor Mini Large Small Large

Year Car cycle Rickshaw Bus Bus Wagon Truck Truck Total

2010 2.7785 0.5299 0.1767 0.4259 0.6715 0.5963 0.6389 1.7013 7.5190

2011 2.9087 0.5534 0.1845 0.4558 0.7018 0.6381 0.6838 1.8752 8.0013

2012 3.0251 0.5756 0.1919 0.4740 0.7297 0.6637 0.7112 1.9501 8.3213

2013 3.1462 0.5986 0.1996 0.4930 0.7590 0.6902 0.7396 2.0284 8.6546

2014 3.2720 0.6226 0.2077 0.5127 0.7893 0.7178 0.7692 2.1092 9.0005

2015 3.4029 0.6474 0.2160 0.5331 0.8209 0.7466 0.8000 2.1933 9.3602

Presently the average travel speed on Ferozepur road is about 32 kilometers per
hour. Expected average travel speed on the new link will be around 42 kilometers
per hour. Therefore the road traffic will save about 30% of travel time. The
economic value of expected time saving for different transport vehicles for the next
5 years (2010-2015) is shown in Table 1 above.

The total fuel saved during travel on the 7 Km link from College Road to Ferozepur
Road can be fairly estimated using the international consumption rates for cars,

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TEPA: Construction of Bypass Road from College Road to Ferozepur Road (Economic Analyses)

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buses, trucks and motorcycles etc. Fuel savings in liters for the next five years are
projected in Table 2 below.

Table 2. (Expected Fuel Saving)4 Million Liters

Year Car M. Cycle Rickshaw Mini Large Wagon Small Large Total
Bus Bus Truck Truck
2010 32.35 7.75 1.72 17.95 18.09 14.06 2.15 1.29 95.38
2011 36.02 8.63 1.92 19.98 20.15 15.67 2.40 1.44 106.20
2012 37.46 8.98 1.99 20.78 20.93 16.29 2.49 1.50 110.42
2013 38.96 9.34 2.07 21.62 21.79 16.94 2.59 1.56 114.86
2014 40.52 9.71 2.16 22.47 22.64 17.62 2.70 1.62 119.43
2015 42.14 10.10 2.24 23.37 23.55 18.33 2.81 1.68 124.22
The value of fuel saved is estimated in Table 3 below:

Table 3. (Economic value of expected Fuel saving)5 Rs. Million

Year Car Motor- Rickshaw Mini Large Wagon Small Large Total
cycle bus bus Truck Truck

2010 109.4729 27.7350 6.3912 15.4048 24.2882 21.5682 23.1090 61.5360 289.5053

2011 114.6028 28.9650 6.6734 16.4863 25.3841 23.0801 24.7330 67.8260 307.7507

2012 119.1889 30.1269 6.9410 17.1446 26.3932 24.0060 25.7241 70.5351 320.0598

2013 123.9603 31.3307 7.2195 17.8318 27.4530 24.9645 26.7513 73.3672 332.8783

2014 128.9168 32.5869 7.5125 18.5444 28.5490 25.9628 27.8220 76.2898 346.1842

2015 134.0743 33.8849 7.8127 19.2822 29.6920 27.0045 28.9360 79.3317 360.0183

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TEPA: Construction of Bypass Road from College Road to Ferozepur Road (Economic Analyses)
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TEPA: Construction of Bypass Road from College Road to Ferozepur Road (Economic Analyses)

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In addition to savings in time and fuel, 20% benefit is achieved due to traffic diversion and 25
% benefit due to overall relief in the system.

The cost break up is as follows:

• Cost of Road Construction: Rs. 2700 Million

• Cost of Flyover at Kaira Colony: Rs. 1000 Million

• Cost of Flyover at Shaukat Khanum Interchange: Rs. 1200 Million

• Cost of Underpass at College Road intersection: Rs. 400 Million

Approximate Total Cost of the Project Rs. 5300 Million

Annual Operation and Maintenance (O&M) cost is estimated at 1% of the construction

(Rs. 53 million/annum).

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4. EOI EVALUATION PROCESS

The selection of the private party will be done on the basis of Technical & Financial
Capability of the bidders; as reflected from their proposals.

4.1 CRITERIA FOR EVALUATION OF PROPOSAL

The capability and competence of the bidder to design, build, finance, operate and
transfer the Project shall be assessed at this stage. This evaluation shall be based upon
following consist of assessment of the following:

4.1.1 Evaluation of Technical Proposal

1) Firm’s Professional Standing and Capability 20 Points

2) Financing Capability 40 Points
3) Project Approach and Methodology 20 Points
4) Relevant experience and Skill 20 Points

The maximum score that can be received against technical criteria is 100 and passing
score is 70. Bidders who pass selection criteria will be issued RFPs and invited to
submit proposals.

4.1.2 Mechanism for Evaluation

The bidders will be evaluated on the basis of following technical criteria:

1) Firm’s Professional Standing and Capability

Bidders should provide necessary information and details about their market standing in
the concerning sector. In this regard firms/consortiums must highlight their technical
capability in managing similar tasks and should provide details of their professional
partnerships, association with other firms, membership of professional bodies,

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relationship with the government etc. The bidders should also provide the history of their
financial statements including recent financial standing, tax records etc.

2) Financing Capability

Bidders/Consortium with net worth/net assets of more than Rs. 1 billion will be awarded
maximum points. Bidders/Consortium with net worth/net assets of less than Rs. 1 billion
will be awarded proportionately lower points. Bidders/Consortium with net worth/net
assets of less than Rs. 200 million will be awarded 0 points. Bidders must submit audited
financial statements or bank certificates indicating the average balance for last 3 years.

3) Project Approach and Methodology

The private party/ consortium will propose its overall approach towards the
implementation of this project. The private party should provide their insight that may
demonstrate their understanding about the project. In the next stage; the party should
spell out its strategy to carry forward different project activities in time function. The
strategy should state the construction, revenue collection and other phases of the project
and must include the mechanism by which toll data can be relayed to LDA. This is
advisable that private party should mention about different models and functions in a
practicable, methodical and achievable manner.

4) Relevant Experience

The bidders should demonstrate that they have the requisite qualification, skills and
expertise to implement the project smoothly and efficiently. In this regard the project
company should provide details about the history of its construction work/ assignments,
particularly of road projects. They must provide details of professionals work performed
by their employees and submit CVs of their working staff and associates.

Bidders should provide details about their accomplishments in the concerning sector.
They must describe their role in the project and the project’s outcome. The Southern
Bypass project is being implemented on public private partnership basis; parties which
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demonstrate a history of successfully implementing similar projects under similar

conditions will be preferred.

In short, Bidders will be awarded maximum points if they demonstrate their financial
strength and marketing capability, propose sound concept plans and designs, develop
efficient timelines for project execution, and demonstrate how they would make The
Southern Bypass a PPP success.

4.2 EOI DOCUMENTATION PACKAGE

The following document and information shall be provided by each applicant to be considered
for prequalification for the project:

1. Name, Contact details and profile of Firm/Consortia.

2. Legal status of the firm, organization structure and nature of business operations.
3. Financial standing of the firm/consortia supported by last 3 years Audited Annual Reports.
4. Banker’s certificate or audited statements regarding credit worthiness and available credit
lines to the firm /consortia.
5. Outline Methodology of the firm/consortia for undertaking the project along with
credentials of technical experts who will operate the Project.
6. A certificate / affidavit that Bidder is not blacklisted by any Government Institution.
7. Any other information in support of capability and experience of the firm/consortia.

The IPDF reserves the right to accept or reject any or all of the EOIs at any stage without
assigning any reason thereof.

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5. SOURCES

• The Urban Unit –Urban Sector Policy & Management Unit, P&D Department, Punjab
• NESPAK: Feasibility Study of the Lahore Ring Road Southern Loop (2008)
• TEPA: Construction of By-pass Road from College Road to Ferozepur Road (Economic
Analyses 2008)
• Mott Macdonald International Limited: Lahore Ring Road Feasibility (Economic and
Financial Evaluation) for TEPA (1996)
• www.lda.gop.pk
• www.ipdf.gov.pk
• www.urbanunit.gov.pk

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