M9 presentation to president 1 6-12

CONVERSION OF THE EXISTING 136KM 4-LANE KARACHI–HYDERABAD SUPERHIGHWAY INTO A 6-LANE MOTORWAY (M-9) ON BUILD-OPERATE-TRANSFER BASIS

Concessionnaire:BINA PURI PAKISTAN (PVT) LTD

Concessionnaire:BINA PURI PAKISTAN (PVT) LTD

PROJECT PRESENTATION FOR THE HONORABLE PRESIDENT OF PAKISTAN

EXCELLENCY ASIF ALI ZARDARI

Bina Puri Corporate Profile

Some key information about the company as follows:

Established Since 1975

Public Listed Company Since 1995

Core Businesses Include :Civil, Building & Infrastructure Engineering, Property Development & Management, Highway Concession, Quarry Operation, Manufacturing of Construction Materials, Polyurethane System House, Power Plant, Utilities and Hospitalities

Certified with MS ISO 9001, OHSAS 18001 and ISO 14001

Manpower Strength : 950 staff with more than 35% technical and managerial staff.

Annual Turnover ($ ‘000)

2009 2010 20110

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,0001,178,063

788,045

1,230,646

Projects Experiences

BINA PURI HOLDINGS BHD is a public listed company on the Main Board of Kuala Lumpur Stock Exchange and among the biggest contracting companies in Malaysia, joining the Billion

Dollar Club.

The Group has completed more than 1,000km of roads and highways, bridges, interchanges, waterworks and

land reclamation projects.

Building projects completed includes commercial buildings, education institutions, hotels, hospitals, government complexes and various types of residential projects.

Apart from actively participating in Malaysia’s rapid industrial and infrastructural drive towards “Developed Nation Status by 2020”, the Group has ventured overseas covering India, China,

UAE, Thailand, Brunei, Indonesia, Nepal, Saudi Arabia and Pakistan.

International ProjectsMalaysia Embassy, Beijing

2 Blocks Residential ,Al-Reem Island, UAE

2000 Houses for BEDB in Brunei Darussalam

Access Road to Bangkok Airport

Eluru-Vijayawada ExpresswayAndhra Pradesh

NHA Housing in Bangplee, Bangkok

e-Space Condominium, Bangkok

Hyatt Regency Hotel, Kathmandu

174 units Villa for DHA, Lahore

Highway Concession Experience

Project Title KL-Kuala Selangor Expressway (LATAR)

Client Malaysia Highway Authority (MHA)

Concessionaire Bina Puri Holdings Bhd

Concession Period 40 Years

Capital Expenditure USD. 330 Million (Rs. 30.0 Billion)

Financial Close Achieved in 9 months

Lenders 1) Bank Pembangunan Malaysia Berhad 2) Islamic Development Bank

LATAR Expressway

CONVERSION OF THE EXISTING 136KM 4-LANE

KARACHI–HYDERABAD SUPERHIGHWAY INTO A 6-LANE MOTORWAY (M-9)

ON BUILD-OPERATE-TRANSFER BASIS

M-9 PROJECT OVERVIEW

M-9 PROJECT OVERVIEW

The B.O.T Concept

o Under the BOT Concept, the concessionaire (Bina Puri) undertakes to design and build the proposed upgrading of the 136km M9 Superhighway and to operate and maintain the completed Motorway for the agreed period of 25 years.

o Bina Puri is responsible to arrange the finance for the project and entitled to retain all revenues generated from the Motorway operation within the concession period.

o The Employer (NHA) shall provide clear R.O.W and all necessary supports including regulatory approvals.

o The Motorway will be handed over to NHA at the end of the concession period.

o The BOT concept provides additional advantages as compared to other arrangements in terms of more secured project financing and expedient project delivery.

The BOT concept necessitates the Concessionaire to complete all the critical “home work” before the start of project works proper.

M-9 being an operational highway ,BinaPuri has to conduct additional works of Visual pavement assessment survey to study the existing conditions which took about 50 days with a team of 6 engineers to walk on foot through out the entire 136 km.

Apart from the above work Bina Puri has to carry out the

following :

a. Topographical Survey

b. Geotechnical Testing

c. Traffic Count Survey

d. Environmental Impact Assessment (EIA) Approval

e. Design of highway to convert from existing 4-Lane to 6-Lane , new Interchanges , Toll Plazas, Rest & Service Areas and other allied buildings

* NHA has to facilitate the followings:

a. Handing over of complete M-9 Superhighway to Bina Puri b. ROW Mutation letter in the name of NHA. c. Clearance of all the squatters in the ROW. d. Relocation of affected services/utilities

The above items are prerequisite for Financial Close by

Bankers

M9 Project Brief

Title

Conversion Of The Existing 4-lane Karachi–Hyderabad Superhighway into a 6-lane Motorway (M-9) On B.O.T Basis (136 km length)

Client National Highway Authority, Pakistan

Concessionaire Bina Puri Pakistan (Pvt.) Ltd.

Date of Signing Concession Agreement

16th January 2012

Capital Expenditure USD. 203 Million (Rs. 18.26 Billion)

Concession Period 28 Years

Expected Financial Close July, 2012

Expected Date of Commencement One (1) month after Financial Close

Construction Period 30 months (Sectional completion will be achieved in 12 months)

o Financing is partly by debt via combination of syndicated term loan and the balance to be funded through investment by Bina Puri.

o Habib Bank Limited has consented to be the Lead Arranger for this syndicated term loan and currently pursuing their own internal approval.

o The syndicated bankers will be from both Pakistan and Malaysia.

o Asian Development Bank (ADB) participation is important because of their worldwide B.O.T experience and knowledge of Pakistan. We plan to use their Guarantee Product to stretch the loan tenure.

o However, ADB have some concerns on previous concessionaire termination which we have requested NHA to satisfy them.

Financial Close : Project Capital Expenditure

o Bina Puri have entered into Consultancy related agreements worth Rs 1.89 Billion involving 13 International and Pakistani companies and have to date spent over

Rs. 700 Million on the Project.

Financial Close : Project Capital Expenditure

Technical Works Preparation Progress

Topography Survey 136km Completed

Pavement Visual Condition Survey

136km Completed

Soil Testing Works Completed

Conceptual Design Preliminary Design Proposal is ready for submission to NHA

EIA Approval

Scoping Meeting with stakeholders conducted on 26/4/12. Report is getting ready for submission to EPA Sindh by mid June 2012

Traffic Study Completed

Toll Collection System /Traffic Control & Surveillance System

Completed

Technical Works Preparation Progress

Architectural Design Works

Preliminary Schematic Layout for Toll Plaza, R&SA, Interchanges and Weigh Stations completed.

Operation Plan

Completed –including manpower requirement, security coverage, site office & accommodation, motor vehicles & equipment and PR program.

Maintenance Plan

Reconnaissance survey conducted and various defects & distress identified – Maintenance work program prepared.

Bina Puri’s project team is working very dedicatedly to ensure all the technical and

financial aspects of the Concession Agreement are fulfilled, thus enabling us to

achieve the financial close and start the construction work timely.

CONCLUSIONCONCLUSION

THANK YOU FOR YOUR ATTENTION

THANK YOU FOR YOUR ATTENTION