MIRA INFORM REPORT

 

 

 

Report Date :

06.09.2008

 

IDENTIFICATION DETAILS

 

Name :

NATIONAL HIGHWAY AUTHORITY

 

 

Registered Office :

27-Mauve Area, Sector G-9/1    PO Box No 1205 Islamabad

 

 

Country :

Pakistan

 

 

Date of Incorporation :

1991

 

 

Legal Form :

Government Owned Company

 

 

Line of Business :

Construction, Maintenance, Improvement and Operation of National Highways and Motorways Network of Pakistan

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Status :

Good

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

 

NAME of the company

 

NATIONAL HIGHWAY AUTHORITY

 

 

summary

 

CONTROLLING MINISTRY

-

Ministry for Communications    

PRINCIPAL ACCOUNTING OFFICER

-

Secretary, Ministry of Communications

HEADED BY

-

Chairman NHA

ESTABLISHED IN

-

 

1991

MAJOR ACTIVITIES

-

Construction, Maintenance, Improvement and Operation of National Highways and Motorways Network of Pakistan

CORE WINGS

-

Planning, Operations, Finance   and Administration

HEAD OFFICE

-

27-Mauve Area, Sector G-9/1    PO Box No 1205 Islamabad – Pakistan.                         

E MAIL

-

info@nha.gov.pk

CONTACT

-

92 (51) 9261129 to 37, 9260565

FAX

-

92 (51) 9260419

REGULAR STRENGTH

-

1410 (Headquarters & Regions)

PSDP ALLOCATION                  FY 2000-01

-

Rs 15.00 Billion

LC        Rs 13172.750 Million

FC        Rs   1827.250 Million

 

 

 

 

 

Regional Offices

 

 

Punjab

-

 

33 Queens Road, Queen Center

Near Mozang Chungi, Lahore

 

 

Tele  :  92 (42) 7572904

Fax   :  92 (42) 7572908

 

 

Sindh

-

 

Bungalow No C-17

KDA Scheme No 1, Karachi

 

 

Tele  :  92 (21) 4533413

Fax   :  92  (21) 4554567

 

 

NWFP

-

 

No 5, Qafila Road          

Defence Officers Colony, Peshawar

 

 

Tele  :  92 (91) 2916966

Fax   :  92 (91) 2916965

 

 

Baluchistan

-

 

54 – B, Chaman Housing Scheme

Airport Road, Quetta

 

 

Tele  :  92 (81) 9201747

Fax   :  92 (81) 9201715

 

 

 

 

ON-GOING PROJECTS

 

NHA is undertaking construction, rehabilitation and maintenance of a large number of roads and bridges projects across the country. The names of some of the important projects are mentioned below: –

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        

 

 

FUTURE PROJECTS

 

Karachi Northern Bypass (57 KMs)

 

 

Lyari Expressway (16.5 KMs)

 

It would be a 2+2 lane access controlled Dual Carriageway at an approx cost of Rs 5,081 Million and will help reduce the travel time from Kemari to Super Highway to maximum 20 – 30 minutes only.

 

 

National Highway Improvement Programme (NHIP)

        

The programme includes rehabilitation / resurfacing of 2800 KMs of those Sections of the Highway network, which have a high rate of return, within the next seven years.

 

Estimated cost of NHIP is about Rs 32 Billion including World Bank assistance of US$ 125 Million.

 

Two studies for the preparation of tender documents and social environmental assessment (SEA) study are being carried out under NHIP. The study will recommend measures to bring down the vehicle operating cost attributable to bad roads.

 

Peshawar–Torkham Expressway (45 KMs)

 

NHA is presently examining two options namely rehabilitation of the existing road or construction of road on a new alignment, keeping in view the rebuild of Afghanistan.

 

Rehabilitation of the existing road will cost over a Billion plus, but due to certain area and terrain constraints, the existing road cannot be improved to the international standards.

 

Construction of a new road with 4–lane bridges and 2–lane highway will cost about Rs 2.0 Billion. NHA has already completed the design for a new 4–lane Expressway.

 

Government of Japan has expressed interest in financing this project through grant.

 

 

Gwadar–Khuzdar Highway (648 KMs)

 

This important road is to link Gwadar Port with upper Sindh and NWFP. Provision of this road will maximize the utility of Gwadar Port and will also help connect this port with Kotri-Shikarpur-DG Khan-DI Khan-Kohat-Peshawar (IH) at Ratodero.

 

 

Rawalpindi–Kohat–Tal–Parachinar (Road)

 

This is another important road link leading to Afghanistan and needs attention for its improvement. This item has been covered with the description of Kohat Tunnel project also.

 

 

Details of Managing Executives/ Head of Departments

 

Name

Designation

Mr. Muhammad Shamim Siddiqui

 

Engr Muhammad Shahid Jamil Qureshi

 

Mr. Tariq Mahmood

 

Major. Gen. Farrukh Javed

 

 

Mr. Ijaz Ahmed Choudary

 

 

Mr. Amjad Virk

 

Mr. Aziz –ul-Haq Mirza

 

Mr. Raja Nowsherwan

 

Brig. Imtiaz Hussain

 

Mr. S.A. Latif

 

Col(R) Muhammad Safiullah

 

Mr. Sabir Hasan

 

Mr. Abdul Rauf Chaudry

 

Mr. Qurban Jan

 

Mr. Khushal Khan

 

Mr. Altaf Ahmed Chaudry

 

Mr. Abdul Haq

 

Mr. Aurangzeb Khan

Minister for Communication

 

 

Minister of State for Communication

 

 

Secretary Communication

 

Chairman National Highway Authority

 

Secretary (National Highway Authority)

 

Member (Finance)

 

Member (Operation)

 

Member (Planning)

 

DG (Administration)

 

General Manager (MPO)

 

GM (Design)

 

GM (Planning)

 

GM (P & CA)

 

GM (Internal Auditor)

 

GM (Finance)

 

GM (Punjab)

 

GM (Sindh)

 

GM (Baluchistan)

 

Powers & Duties of NHA

 

The gist of the powers and duties assigned to NHA by the Government, as per the provisions of the NHA Act, 1991, revised in 2001, are as follows: -

 

·          

Advise the Federal Government on matters relating to National Highways and Strategic Roads.

 

·          

Frame a scheme or schemes for matters such as construction, expansion, operation and development of National Highways and Strategic Roads and undertake work/incur expenditure on such scheme(s).

 

·          

Acquire any land in accordance with legal procedure and obtain and dispose of moveable and immovable property of interests therein.

 

·          

Research and development in the field of Highways.

 

·          

Procure plant, machinery, instruments and materials required for its use.

 

·          

Enter into and perform all such contracts as it may consider necessary.

 

·          

Levy, collect or cause to be collected tolls on National Highways, Strategic Roads and such other roads as may be entrusted to it and bridges thereon.

·          

License facilities on roads under its control on such terms as it deems fit.

·          

Determine a building line between which and the RoW (Right of Way) it shall not be lawful without the consent of the Authority to construct or maintain any structure or make any excavation.

 

·          

Cause studies, surveys, experiments and technical researches to be made or contribute towards the cost of such studies, surveys, experiments or technical researches made by any other agency.

·          

Exercise power toward negotiated contracts for projects to be undertaken through Private Sector Financing Programme.

·          

Seek and obtain advice and assistance for the preparation and execution of any plan, programme or project.

·          

Raise funds (local and foreign) through borrowing, floating of bonds, sharing or leasing of assets or any other means, from time to time (provided that a foreign loan shall be negotiated in consultation with the relevant Ministry of the GOP).

 

·          

Perform any other function supplemental, incidental or consequential to the purposes and functions aforesaid.

 

·          

Take over RoW of the roads declared as National Highways with the consent of the Provinces and approval of the Federal Cabinet and Provinces shall simultaneously effect the mutation free of cost and without any liability or condition.

 

 

NEW PROJECTS 

 

Rahim Yar Khan – Tando Muhammad Pannah

 

The project (80 Km) awarded to FWO in January 2000 at a cost of Rs 3500 million.  30% work has been completed.

 

 

TMP (Tarinda Muhammad Pannah)

 

Tarinda Muhammad Pannah to Bahawalpur (80 Km) is under review.  The cost of the contract is Rs 3500 million.

 

 

MCH (Makran Coastal Highway)

 

Work on Liari-Ormara Section (248 Km) of Makran Coastal Road (653 Km) at the cost of Rs 5288 million is in full swing.  42 Km road completed while work from 42 to 92 Km is in progress.  Work of Gwadar-Pasni section (132 Km) started on August 17, 2001.

 

 

KKH (KARAKORAM HIGHWAY)

 

Improvement of KKH (Hasanabdal-Abbottabad-Thakot-Gilgit-Khunjrab) is in progress.  NHA awarded Thakot-Chillas and Chillas-Kunjrab sections to FWO.  Chillas-Khunjrab section has been completed. 

 

 

DI Khan – Mughal Kot Section

 

Work on 124 Km road of DI Khan – Mughal Kot awarded to FWO at a cost of Rs 1307 Million.  About 35% roadwork completed.

 

 

Dera Allah Yar – Nuthal

 

Improvement work on Dera Allah Yar – Nuthal (55 Km) at the cost of Rs 654 Million is in progress. About 6% roadwork completed. The construction/replacement of existing steel bridges at 1 Bachani, 2 Pir Punja, 3 Bolan, 4 Dozan, & 5 Kolpur awarded for an amount of Rs 75 Million.

 

 

Other Projects

 

 

 

NHIP - Summary of Financing Plan for Years 2001-2008 (funded from World Bank + GOP + Toll Receipt)

 

 

 

 

 

 

 

 

 

 


           

 

 

 

 

Financial Resources of NHA

 

The financial resources of NHA can be broadly classified under the following heads: -

 

a.         Cash Development Loans (CDL)

b.                   Grants- in- Aid

c.                   Revenue Receipts

d.                   Other Receipts

 

All the funds received (CDL, grants, revenues, etc) form part of a non-lapsable NHA Fund authorized under Section-21 of NHA Act, 1991. Separate distinct accounts are maintained at Bank for the purpose of financial control.

 

 

Cash Development Loans (CDL)

 

These are allocated by the GOP (Finance Division) through PSDP (Public Sector Development Programme) after consideration by Finance and Planning Divisions. Over the years, NHA received (as on June 30, 2001) an aggregate of Rs 97.626 billion in local currency (LC) and Rs. 19.759 billion in foreign exchange (FE). Besides, NHA also utilized direct foreign loans guaranteed by GOP for Motorways-I (Islamabad – Peshawar) and II (Lahore-Islamabad) from Turkish Exim bank and Daewoo amounting to US$ 58.259 million and 676 million respectively. 

 

 

Grants –in- Aid

 

Grants to NHA, received from Ministry of Communications (MOC), are of two types.  These are meant for: -

 

a.         Maintenance of National Highways

b.         Establishment Charges

 

Grant for Maintenance of Highways

 

Starting from FY 1990-91, the amount of actual receipts   was only Rs 281.595 million as against the demand of Rs 600.000 million i.e. 53% less than the actual requirement. The phenomenon of extremely reduced allocation not only continued to persist but worsened year after year. Resultantly, NHA could get only 16% of the demanded funds in FY 2000-01 viz Rs 482 million was actually received against the demand of Rs 3000 million.

 

 

Grant  for Establishment Charges

 

Expenditure on 252 core posts of NHA is met out of this grant. Each year, detailed working of the demand is submitted to MOC. However, like maintenance, the demand is never fully catered for. During FY 1990-91, NHA could receive a sum of Rs 5.683 million against the demand of Rs 7.647 million.  This pattern of demand versus receipts continued over ten year’s period i.e. upto 2000-01 in which NHA received Rs 21.699 million against a demand of Rs 28.541 million (24% less than the demand).  

 

 

Revenue Receipts

 

Revenue receipts collected by NHA are of following types:-

 

·         Toll Receipts

 

The Public Sector Development Funds cannot fully meet the requirements of NHA to undertake its mandate effectively, particularly in relation to maintenance of valuable assets of national highways. Generations of own resources have, therefore, become vital for continuation of the maintenance and rehabilitation programme for all roads needing repairs and up gradation. Revenue collection activities, therefore, commenced with effect from July 1, 1992 but these could not attain a significant volume until FY 1999-2000.  The following table shows comparison of revenue collections prior to 1999-2000 and thereafter on gross basis: -  

 

 

 

                       

Period

(Rs in Million)

1-7-1992 to 30-6-1999

1097.829

1-7-1999 to 30-6-2000

1296.112

1-7-2000 to 30-6-2001

2070.385

Total:

4464.326

 

It may be seen that out of total collection of Rs 4464.326 million for the period July 1992 to June 2001, a sum of Rs 1097.829 million only was collected upto June 1999, which is 24.6% of the total revenues. 

 

The toll collection is done through agency arrangement and the cost of collection and operations is paid from these receipts and the net amount is retained by NHA for funding of maintenance and rehabilitations schemes, as provided under NHA Act, 1991.

 

The volume of collections is expected to increase further in coming years mainly because of management of collections on commercial lines. Under the arrangement, outside agencies are entrusted the responsibilities of maintaining the roads, managing the traffic and collecting the toll to generate revenues.

 

Other Receipts

 

It is customary to distinguish Revenue Receipts from other Receipts to identify periodically the regular sources of income in the form of taxes, levies, etc, and arbitrary sources of income which cannot be measured with reference to a particular period and is contingent upon certain events. These include: -

 

a.                   Rates, Fee and Taxes

b.                  Sale Proceeds of NHA Assets

c.                   Sale of Tender Documents

d.                  Miscellaneous receipts

e.                   Profit

 

During FY 2000-2001, the total receipts on this account were Rs 229.149 million.

 

 

Expenses Against Revenues Account  

 

Generally, only operational and maintenance operations of road network are made against the revenue account. However, in view of the inadequate provision of resources from the government, these funds are utilized to meet development expenditure. The details of operational and other expenditure made during FY 2000-2001 are as under: -

 

a.         Operational Charges: A sum of Rs 1417.111 million has so far been utilized as operational charges as against the revenue receipts of Rs 4464.326 million on gross basis for the period December 1997 to June 2001.

 

b.         Servicing of Loans: The position of CDL and foreign loans upto June 30, 2001 is under review. Some of loans have been received through PSDP. A sum of Rs 1.141 billion was debited by the government to the PSDP allocation, which was later charged to Islamabad – Lahore Motorway receipts, thereby increasing the level of dependence on NHA’s own resources for debt servicing.

 

 

c.         Loans to PSDP Projects:  In view of the short releases of funds under PSDP from the government and inevitably of making certain payments in time during 2000-2001, borrowings from other NHA accounts such as Retention Money, Revenue Receipts, etc, were utilized to finance PSDP during the year.  These amount to Rs 2143.641 million. The government has been approached to refund these amounts to enable NHA to utilize them on the designated purposes.

 

 

 

 

 

YEARWISE BREAK-UP OF CDL(GOP)/FOREIGN RELENT LOANS

UPTO 30-6-2001

 

 (Rupees. in Billion)

 

Cash Development Loan

YEAR

GOP

FORIGN RELENT LOAN

1990-91

0.25

 

1991-92

5.152

1.022

1992-93

9.498

1.556

1993-94

8.084

2.142

1994-95

7.406

2.282

1995-96

6.100

2.367

1996-97

7.183

2.816

1997-98

9.952

2.446

1998-99

* 17.325

1.346

1999-2000

**16.364

2.379

2000-2001

*** 10.312

1.404

Total: -

97.626

19.760

 

 

 

Government Guaranteed direct loans:

 

i) Daewoo Loan for Islamabad – Lahore Motorway

  US$ 676 Million

 

ii) Turkish Exim bank  loan for     (Islamabad – Peshawar Motorway)

  US$ 58 Million

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF REVENUE

 W.E.F. 01-7-1992 - 30-6-2001

 

 

(Rs. in Million)

A

UNDER O & M CONTRACTS

 

 

 TOLL RECEIPTS

 

 

i)  LAHORE-ISLAMABAD MOTORWAY (M/s  FWO)

1731.139

 

ii) LAHORE-RAWALPINDI-TOORKHAM,
 CHINIOT & TALIBWAL BRIDGE (M/s. NLC)

1206.194

 

iii) LAHORE-KARACHI, HASANABDAL-ABBOTTABAD-THAKOT-GILGIT-KHUNJRAB, SUKKUR-SIBI-SARYAB, QILLA SAIFULLAH-LORALAI-DG KHAN-MULTAN & RBNA (M/s FWO)

843.157

 

iv) PRIVATE CONTRACTORS

649.624

 

v) WEIGHT BRIDGES/STATIONS (M/s. NLC)

4.501

 

vi) ROW A/C. ADVERTISEMENT/PROMOTIONAL MATERIAL

29.711

 

Total

4464.326

B

OTHER THAN O & M CONTRACTS

 

 

i) SALE OF TENER DOCUMENTS

37.262

 

ii) PROFIT

1023.667

 

iii) MISCELLENIOUS RECEIPTS

115.703

 

Total

1176.632

 

Total (A + B )

5640.958

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENDITURE UPTO 30-6-2000

ON ACCOUNT OF PSDP (Public Sector Development Programme)

 

 

(Rs. in Million)

 

EXPENDITURE

YEAR

L.C.

F/AID

TOTAL

1991-92

5220.13

1071.609

6291.739

1992-93

7525.389

1554.894

9080.283

1993-94

8446.818

2142.063

10588.881

1994-95

8911.000

2281.851

11192.851

1995-96

6863.413

2367.18

9230.593

1996-97

7245.000

2816.000

10061.000

1997-98

10361.321

2445.801

12807.122

1998-99

10350.526

1345.753

11696.279

1999-2000

13659.464

2379.064

16038.528

Total:

78583.061

18404.215

96987.276

 

 

 

NHA - FINANCIAL REVIEW OF FY 2000-2001

 

Statement of Sources and Application of Funds

 

GOP Account

                                                                                               

Inflows

a.    Cash Development Loans (PSDP) (Net)

b.    Establishment Grant

c.    Maintenance Grant

Total (A)

 

Outflows

d.   PSDP Projects

e.   Establishment

            i.     252 Core Posts

            ii.    Maintenance

            iii.   1%

Total (i+ii+iii)

f.   Maintenance (excluding Estt)

Total outflows (B) (d+e+f)

Deficit (B-A)

(Rs in Million)

9171.283

  21.699

482.000

9674.982

 

       

12413.274

 

28.347

13.369

143.855

185.571

617.382

13216.227

3541.245

 

FY 2000-01 ended with a net deficit on GOP Account i.e. the funds provided by the government during the year fell short by Rs 3541.245 million. The payments made by NHA in excess of GOP receipts were inevitable because of contractual obligations, default against which might have involved NHA into litigations or led to financial implications due to penalties/interest on delayed payments. These inevitable payments were, therefore, made through borrowings from the following accounts: -

 

 

Account

Rs in Million

Revenue

2143.641

Retention Money

0469.840

NHA Main

0078.027

Maintenance (cash at bank)

0122.789

Carried Over Liabilities to FY 2001-02

0726.948

Total:

3541.245

 

 

PSDP 2000-2001

 

Inflows

 

Against total demand of Rs 25.774 billion, including foreign aid of Rs 1.827 billion for the FY 2000-01, the government allocated a sum of Rs 15.000 billion including Rs 1.827 billion in FE.  The statement in the table mentioned below shows the project-wise detail of PSDP allocation. However, NHA could not, as usual, get its full share of allocation and the amount actually received was curtailed to Rs. 9171.282 million as detailed below: -

 

 

                                                                             (Rs in Million)

Original PSDP (LC)

Debt servicing

Cuts applied by the GOP

Funds actually received

13172.745

1141.00

2860.463

9171.282

 

 

Outflows

 

Against the actually released funds, NHA had to meet much higher liabilities of contractors, consultants, etc, as the pace of work could not be slowed down suddenly. Timely payments became necessary because of contractual obligations. Accordingly, NHA incurred a total development expenditure of Rs 12413.274 million during FY 2000-01. Mode of financing is given below: -

 

              Mode of Financing                                           (Rs in Million)

a.

b.

c.

d.

 

 

e.

Total Project Expenditure

Grant from the Government

Shortfall (a – b)

Borrowings (i + ii)

i.      From Revenue Account

ii.     From Retention Money Account

Liabilities Carried-over

12413.274

9171.282

3241.992

2613.481

2143.641

  469.840

628.511

 

As regards Foreign Currency allocation, a sum of Rs 1404.052 million was utilized against the allocation of Rs 1827.250 in respect of aided projects.

 

The statement also gives the financial position on PSDP funds allocated and expenditure incurred, including the borrowings from other NHA accounts. The government has been approached to refund these amounts, which were utilized as borrowing for meeting unavoidable development expenditure during FY 2000-01, to NHA.

 

The major area of focus had been the Islamabad-Peshawar Motorway as it took away 53.5% of the total expenditure during the financial year.  An amount of Rs 6638.844 million was spent on this project against total PSDP expenditure of Rs 12413.274 million (LC).   A total amount of Rs 11.323 billion has been utilized on this project upto June 30, 2001.

 

 

 

 

 

 

 

Maintenance Budget

 

Inflows

 

For FY 2000-01, against a demand of Rs 3000 million, an allocation of only Rs 700 million was approved as maintenance grant by the government. Funds released upto June 30, 2001 were only Rs 482 million, which were only 16% of the actual requirement/demand for FY 2000-01. Compared with previous years, the funds released (Rs 482 million) were 20% lesser than the receipts of 1997-98 (Rs 600 million) and 1998-99 (Rs 604.6 million) and 27% less than 1999-2000 (Rs 660 million).

 

 

Outflows

 

As stated above, only 16% of the requirement for maintenance was met by the government during FY 2000-01. However, utmost effort was made to keep the swing of maintenance activities as close to the level of previous year as possible. Thus, funds amounting to Rs 630.751 million were arranged for this purpose. Break-up is as under: -

 

                    Funding                                                               (Rs in Million)

 

Grant from the Government

Debit to NHA Main Account

Utilization of Cash at Bank

(Maintenance Account)

Liabilities Carried Forward

Total:

482.000

019.234

122.789

 

006.728

630.751

 

The region wise distribution of maintenance funds is as under: -

 

                 Region                                                                      (Rs in Million)

 

Punjab North

Punjab South

Sindh

NWFP

Balochistan

Northern Areas

Headquarters *

Total:

144.000

050.000

183.000

073.000

144.000

  008.000

028.751

630.751

 

* Note: Salaries and establishment charges of persons employed in connection with maintenance activities.

 

 

Establishment

 

Establishment Budget (Government Grant)

 

Inflows

 

In order to meet the establishment charges of 252 core posts of NHA, a sum of Rs 21.699 million was received from Ministry of Communication during the year (upto June 30, 2001) as against the allocation of Rs 23.411 million and Rs 28.541 million requirement worked out for the year. In other words, the funds actually received were 24% less than the actual requirement. When compared with FY 1999-2000, funds provided show marginal addition of Rs 0.393 million which is only 1.8% in excess of the last year.

 

It is apprehended that with such recurring insufficient provision of funds, the financial constraints to meet establishment cost of NHA, despite downsizing, would lead to dire situation of failure to meet even minimum cost of establishment of NHA.

 

Outflows

 

A sum of Rs 28.367 million was incurred as total expenditure on account of Establishment Charges against 252 core posts of NHA giving rise to a shortfall of Rs 6.648 million on GOP Account. The shortfall was financed out of the Main Account of NHA. Break up of expenditure is as under: -

 

 

           Head                                                      (Rs in Million)

Pay

Allowances

Utilities

Medical

Rental Charges

Others

Total:

08.258

04.091

01.654

03.843

06.480

04.041

28.367

 

1% Special Allocation (Establishment Expenditure)

 

Inflows

 

Establishment expenditure (1%) was budgeted for the first time in FY 2000-01. Against a provision of Rs 91.710 million for NHA Headquarters and Regions, an expenditure of Rs 143.855 million was incurred. This has resulted in the preparation of a consolidated and uniform establishment charges budget for the Headquarters as well as Regions. 

 

 

 

 

Outflows

 

During FY 2000-01, the level of expenditure against major heads of expenditure was as follows.  The shortfall between provision and expenditure was met through utilization of cash balances in NHA Main Account: -

 

 

                Head                                                  (Rs in Million)

Headquarters

72.3555

Punjab (North)

23.000

Sindh

18.000

NWFP

12.500

Balochistan      

9.000

Punjab (South)

8.000

Northern Areas

1.000

Total:

Shortfall 

143.855

52.145

 

Revenue Receipts

 

Inflows

 

Total revenue collection for FY 2000-01 was Rs 2299.537 million. 90% of the revenues (Rs 2070.388 million) were contributed by O&M contracts and remaining 10% (Rs 229.149) by other collection arrangements.  Among O&M contracts, Lahore-Rawalpindi-Torkham contributed 41% Lahore-Karachi 31% and Lahore- Islamabad Motorway 22%.

 

A comparison of revenues would reveal that FY 2000-01 witnessed an increase of 43% over FY 1999-2000. Total revenues for that year were Rs 1611.276 million. While there was 59.7% increase in revenues from “O&M contracts”, a simultaneous decline was registered in respect of “other revenues” by 27.3%. The individual components show increase ranging from 40% to 392% and decrease ranging from 8% to 54%. Toll receipts and profit had been the main areas of decrease.

 

 

 

 

Outflows

 

Expenditure Charged Against Revenue Receipts

 

Operational Charges    

 

The first charge against the revenue account is operational and collection costs. For FY 2000-01, a sum of Rs 629.517 million was ­­incurred ­­as operational charges, which is 27.4% of the total revenues collected for the year. Comparison with previous year viz FY 1999-2000 reveals that operational charges increased by 34.4% as against the increase in revenue of 43%. The large percentage increase in revenue compared with operational charges is significant in terms of cost benefit scenario. The position is further confirmed when operational charges as percentage of revenues collected for both the years are compared—29% in 1999-00 and 27.4% in 2000-01.

 

 

Other Charges

 

In addition to operational charges, for the first time, a sum of Rs 2143.641 million had to be used as borrowings for financing PSDP during the year because of reduced receipt from the government as originally expected/allocated.

 

 

Additional Information

 

Currently the subject authority has major projects in hand as mentioned below:

 

Karachi-Lahore-Peshwar (N-5)

 

1  Construction of New Bridge over River Sutlej near Bahawalpur

 

2  Chablat Nowshera

 

3  TMP-Zahir Pir Section-I

 

4  Zahir Pir-BWP Section-II

 

5  Rehab. Of exixting carriageway Lalamusa-Gulyana-Tutha Rai Bahader

 

6  Okara Bypass

 

7  Rehab. & Improvement of Wazirabad Bypass

 

8  Dualization & Upgradation of Multan-Qadirpur Rawan Section

 

    Karachi-Quetta-Chaman (N-25)

 

9  Khuzdar Shahdadkot, Sec-IV,Contract Package -III

 

10  Khuzdar Shahdadkot, Sec-IV,Contract Package -III

 

      Hassanabdal- Khunjrab (N-35)

 

11  Rehab of Bridges on KKH

 

      Nowshera-Dir-Chitral (N-45)

 

12  Lowari Tunnel Southern Portal Access Road

 

13  Lowari Tunnel Northern Portal Access Road

 

14  Dualization of Takht Bahi to Shergarh Road ( Pack I )

 

15  Dualization of Shergarh to Dargai Road ( Pack II )

 

16  Rehabilation of Dargai-Chakdara Section

 

17  Improvement and widening of Timergara-Akhagram Road ( Phase I )

 

     Kuchlak-Zhob-D.I. Khan (N-50)

 

18  5 Bridges on Zam Tower-Mughalkot

 

19  2 Bridges at Km-71 on N-50 Section - I

 

20  D.I. Khan- Mughalkot

 

21  6 Bridges including approach road on N-50 ( Zhob Mughalkot )

 

      Kotri-D.I. Khan-Peshwar (N-55)

 

22  Rehabilation of ECW of IHP D.G Khan-Rajanpur ( Package A )

23  Rehabilation of ECW of IHP D.G Khan-Rajanpur ( Package B )

 

24  Rehabilation of ECW of IHP D.G Khan-Rajanpur ( Package C )

 

     Sukkur-Sibi-Saryab (N-65)

 

25  Nuttal -Sibbi

 

26  Realignment of Mehrabpur and Dera Allah Yar Town

 

     Qila Saifullah-Multan (N-70)

 

27  Widening and Strengthening of Qila Saifullah -Loralai-Bewata

 

28  Khajuri-Bewata

 

29  Shershah Bridge

 

Islamabad- Kohala (N-75)

 

30  Islamabad -Muzaffarabad Project

 

31  Jhalkhad - Chillas Section

 

32  Naran-Jhalkhad Section National Highway Improvement Programe (NHIP)

 

33  Rehabilation & Improvement of Karachi-Hyderabad Super Highway   (NB) Km 101-Km 149

 

34  Rehabilation & Improvement of Hyderabad-Hala (SB) Km 163 - Km 211

 

35  Rehabilation & Improvement of Hala-Chanesar Bridge (SB) Km 215 - Km 267

 

36  Rehabilation & Improvement of Chanesar Bridge-Moro (SB) Km 267- Km 315

 

37  Resurfacing & Strengthening of Gujranwala-Kharian (NB) Km 1320 - Km 1350

 

38  Resurfacing & Strengthening of Gujranwala-Kharian (NB) Km 1383- Km 1410

 

39  Resurfacing & Strengthening of Gujranwala-Kharian (SB) Km 1384.8 - Km 1410

 

40  Resurfacing & Strengthening of Nowshera-Peshawar (NB/SB) Km 1660 - Km 1694

 

     Miscellaneous

 

41  Torkham-Jalalabad

 

42  Karachi Northern Bypass package-I

 

43  Lyari Expressway project

 

     Islamabad - Peshwar Motorway (M-1)

 

44  Completion of Balance Work

 

      Islamabad - Lahore Motorway (M-2)

 

45  Makhdoom Interchange

 

       Retodero - Gwadar Motorway (M-8)

 

46  Gawadar-Turbat,Section -I Package-II-A

 

47  Gawadar-Turbat,Section -I Package-II-B

 

48  Turbat-Hoshab,Section -II Package-II-A

 

 

Historical Background

 

The Government of Pakistan (GOP) decided to federalize seventeen important inter-provincial roads in 1978 and created the National Highway Board for development and maintenance of these federalized roads named as “National Highways”. Total length of the federalized roads now stands at 8780 KMs.

 

The National Highway Authority (NHA) was created, in 1991, through an Act of the Parliament, for planning, development, operation, repair and maintenance of National Highways and Strategic Roads specially entrusted to NHA by the Federal Government or by a Provincial Government or other authority concerned.

 

The Government of Pakistan, in 1978, decided to federalize important inter-provincial roads. The erstwhile National Highway Board (NHB) was created for the development and maintenance of the federalized roads, which were named as "National Highways". The NHB was replaced by the National Highway Authority (NHA), created through an Act of the Parliament, in 1991. All the National Highways/Strategic Roads are now the responsibility of the NHA.

 

NHA is responsible for the development, operation and maintenance of National Highways. It was established to plan, promote, organize and implement programmes for construction, development, operation, repair and maintenance of National Highways and Strategic Roads. The total length of roads under NHA (8,780 KMs), account for 3 % of the entire road network and 75 % of the commercial road traffic in the country.

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.26

UK Pound

1

Rs.79.00

Euro

1

Rs.63.53

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions