Bina Puri Holdings Bhd

CIMB Investment Bank Berhad

Financial Report
Table of Contents
Section 1 : Project in Brief Section 2 : Project Structure Section 3 : Estimated Capital Expenditure Section 4 : Traffic and Revenue Projection

Section 5 : Key Project and Financial Assumptions Section 6 : Preliminary Financing Plan and Parameters

Section 1

Project in Brief

Project in Brief
The 135 km Karachi-Hyderabad (M9) dual 4-lane motorway (popularly known as super highway) is the most important link of Karachi Port to Port of Qasim to the rest of the country. The motorway is currently serving a traffic volume of over 24,0000 vehicle per day with over 60% being heavy vehicle traffic. The average traffic growth rate of the motorway is about 5% annually. The route is the shortest possible distance between Karachi and Hyderabad and it connects to the main North-South Links i.e. National Highway N-55 (Indus Highway) and the National Highway N-5 (Grand Trunk Road).

The Karachi-Hyderabad (M9) motorway was constructed as part of First Highway Project with the assistance of World Bank during 1964 68 and dualised in 1991 as part of Fourth Highway Project. The Toll is being collected by the National Highway Authority (NHA). To date, road users are facing inconvenience because of immense growth of traffic gradually exceeding 4-lane capacity. Solution lies in the upgrading of this road to a 6-lane Motorway (M9)(the Project).

Project in Brief (Contd)

The NHA has offered the Project to the private sector to develop, design, engineer, finance, construct, rehabilitate, commission, manage, operate, maintain, insure and, at the end of the Concession Period, transfer, all under a Build-Operate-Transfer (BOT) arrangement, and during the Concession Period to collect, receive and earn the Tolls and other revenues generated from the Project. .

Project in Brief (Contd)

The Concessionaires scope of work covers the key engineering features of the Project include the following:

rehabilitation of the existing 134.35 km of 2 lane carriageway; construction of an additional new lane; extension of the four (4) existing bridges; minimum of seven (7) new interchanges to be provided; minimum of two (2) main service areas to be provided; minimum of seven (7) weigh stations; two (2) maintenance and operation compounds; construction of two (2) new toll plazas; and other ancillary development relevant to the M9 Motorway.

Project in Brief The Alignment

M9

Project in Brief The Alignment (Contd)

Section 2

The Project Structure

Project Structure
NHA

Bina Puri Holdings Berhad

Equity

Concession Agreement

Debt/Equity

Bina Puri Pakistan (Private) Limited SPV

Lenders
Loan Repayment

Main EPC Contractor

Insurance

Sub-Contractors

M9 Motorway

10

Section 3

Estimated Capital Expenditure

Estimated Capital Expenditure

Detailed Breakdown
Rupees Description Main Carriageway (North & South Bound) (PKR) 12,898,796,912

Interchanges (7 nos)
Service Road Service Areas (North and South) Main Toll Plaza Weigh Bridges & Allied Works

1,507,732,244
1,084,549,545 676,595,473 378,494,986 236,559,366

Construction Cost
General & Preliminary, Consultancy, Design & Project Management Fees Grand Total

16,782,728,525
1,485,271,472 18,267,999,997

NB: The above capex does not include refurbishment cost for the existing road 12

Estimated Capital Expenditure (Contd)

Proposed Implementation Schedule

Year Implementation Amount

Schedule (%)
2012 2013 2014 30# 40 30 Total
NB: #Indicative of full year

(PKR Million)
5,480.4 7,307.2 5,480.4 18,268.0

13

Section 4

Traffic and Revenue Projection

Traffic and Revenue Projection

Traffic Projection

Growth of Vehicles

Type of Vehicles

Assumed Growth Rate* (%)

Cars/Jeeps/Taxis
Growth in Fuel Consumption AADT Estimates

4 p.a.
4 p.a.

Traffic from Karachi Northern Bypass

Wagons

Minibuses/Coasters
Buses Truck Articulated

4 p.a.
5 p.a. 5 p.a. 5 p.a.

Growth in GDP

Diverted Traffic to M9

Note: * For Year 2015 (expected 1st year of operation), growth rate for Class 1,2,3 and Class 4, 5 & 6 is assumed at 10% and 9% respectively.

15

Traffic and Revenue Projection (Contd)

Proposed Toll Structure and Toll Rate Class Type of Vehicles 1 2 3 4 Cars/Jeeps/Taxis Wagons Minibuses/Coasters Buses Toll Multiple 1.00 1.38 2.20 3.15 Annualisation Factor 365 days 365 days 365 days 365 days

5
6

Trucks
Articulated

3.85
4.96

365 days
365 days

16

Traffic and Revenue Projection (Contd)

Proposed Toll Structure and Toll Rate

Toll Rate Per KM (Year 2015) (PKR) - Class 1 : Cars/Jeeps/Taxis - Class 2 : Wagons - Class 3 : Minibuses/Coasters - Class 4 : Buses - Class 5 : Trucks - Class 6 : Articulated Toll rate increment Frequency of toll rate review

0.89 1.23 1.96 2.80 3.43 4.42 10% p.a. Annually over the operating period

17

Section 5

Key Project and Financial Assumptions

Key Project and Financial Assumptions

General
Concession Period Construction Period Project Structure Expected Commercial Operating Date 28 years (effective upon signing of CA) 30 months Build-Operate-Transfer Year 2015

Operating & Maintenance (O&M)

Routine Maintenance Cost Heavy Maintenance Cost PKR 2.70^ mil/km PKR 12.94* mil/km Incurred every 7 years

Operating Cost
Escalation Rate of O&M

10% p.a. of toll revenue

5% p.a. (as per RFP)

19

Key Project and Financial Assumptions (Contd)

Tax & Capital Allowance
Corporation Tax
Capital Allowance Qualifying Capital Expenditure

35% p.a.
4% Annual Allowance over 25 years 75% of total Capex

Others
Depreciation Surplus Funds NHA Revenue Sharing Based on no. of years left in concession 50% of opening cash balance @ 7% p.a. 5% p.a. of net toll revenue. Payment is after full settlement of project cost

20

Section 6

Preliminary Financing Plan and Parameters

Preliminary Financing Plan and Parameters

Indicative Salient Terms
Structure Profit Rate Loan Tenure: - Grace Islamic 15% p.a. 15 years 6 years

- Repayment
Debt to Equity Ratio

9 years
80 : 20

DSRA
DSCR (min)

3 months
2.5 times

22