Dhabeji SEZ Connectivity: Enhancing Trade and Investment Opportunities
Dhabeji SEZ provides strategic connectivity for importing raw materials and exporting finished goods efficiently, with proximity to Port Qasim and Karachi Airport. Key enablers include awarded SEZ status, water and gas connections, road developments, and electricity provisions. The SEZ offers incentives for developers and zone enterprises, focusing on industry clusters like steel, petrochemical, textiles, and logistics. The master plan and project structure aim to facilitate seamless operations and maximize economic potential.
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Dhabeji SEZ Connectivity Enabling raw material import and finished goods export without incurring major inland transportation costs and saving time. Easy access to Port Qasim (22 Km) Easy access to Karachi Airport (41 Km) via national highway Enabling safe travel of foreign workers and management personnel. Direct access to the National Highway (0.5 Km) Enabling the transportation of goods to upcountry and Central Asian nations utilizing the National Trade Corridor. Hyderabad 7 million population Thatta 3 million population Karachi (50 km) 22 million population Access to:
Key Enablers Dhabeji SEZ has been awarded SEZ Status under SEZ Act 2012 (In principle) 10 MGD water connection being provided by Government of Sindh through a dedicated water line. Completion date: Q2 2023 15 MMCFD gas connection at the door step through a dedicated line by federal government Completion date: Q2 2022 A direct access road (8 km) connecting Port Qasim to Dhabeji Zone - Being developed by Government of Sindh. Completion date: Q4 2022 A dedicated cargo deck connecting the zone with ML-1 from Dhabeji Junction has been envisaged 250 MWs electricity being provided at the door step through a dedicated 220/132/11 kV Grid Station by federal government Completion date: Q4 2023 A Jetty to connect Port Qasim alongside Dhabeji zone from creek side is envisaged.
Utilities Connection Layout Gas Electricity - Water
Key features Areas in acres and the percentages for different land uses Incentives for Developers One time exemption from all custom duties and taxes for all capital goods imported into Pakistan for the establishment of an SEZ. Exemption from all taxes on income accruable in relation to the development and operation of the SEZ for a period of five (5) years starting from the date of signing of the Development Agreement. Land-use Industrial Commercial Public Buildings / Amenities Parks & Open Spaces Residential / Apartments Roads / Parking Project Area Area (Acres) Percentage 869.48 61.97 125.93 45.47 68.44 354.71 1526 56.98% 4.06% 8.25% 2.98% 4.48% 23.24% 100% Incentives for Zone Enterprises One time exemption from custom duties and taxes on imports of capital goods into the SEZ for installation. Income tax exemption for 10 years for units starting production by 30-06-2020 and 5 years for the units starting production thereafter. Strategic Industry Clusters Steel | Building Materials | Petrochemical | Automotive & Allied | Light Engineering | Textile & Garments | FMCGs Logistics | Warehousing 6
Project and Transaction Structure The Developer: To carry out detailed design and master plan for the project. To develop internal infrastructure and related facilities for the project. To carry out O&M of the zone infrastructure and facilities. (Revenue Model) Developer will collect revenues through sub-leasing of the plots to zone enterprises and through O&M and other value-added services. Project/SPV will be transferred at a nominal cost at the end of Concession term through a buy- back option. Developer to share a percentage of revenue, from sale proceeds. Developer will be required to share a percentage of their revenue during the construction phase of the project and from sale (upfront lease rent) proceeds. Developer to procure Industrial Commitments as part of the bidding process The minimum PV of this revenue share shall not be less than the base price of PKR 1.725 Billion. The Developer shall establish an escrow account with an escrow bank in which the revenue collections from sub-leasing of the plots will be deposited.
Transaction Structure Dhabeji SEZ has been proposed to be constructed in 2 phases GoS to enter into a master lease agreement for 50 years with the Developer / SPV to lease land for phase 1, and an agreement to lease land for phase 2 upon completion of milestones. Phase II 780 acres Phase 1 750 acres Total Concession term for the Project is 20 years 5 Years Construction 15 Years O&M Phase 1 Construction period - 30 months Phase 2 Construction period - 24 months Project land for phase 1 of 750 acres shall be leased to the SPV after the execution of the PPP Agreement. Project land for phase II of 780 acres shall be leased to the SPV upon substantial completion of Phase I 5 years are for construction of the zone
Lease And Sub-Lease Developer shall launch sales of industrial and commercial plots to the potential zone enterprises subsequent to the later of 3 months after the commencement of the project construction or upon completion of ten percent (10%) of the project works for phase 1. In Phase 1 the Floor price shall be PKR 12 Million per acre. In Phase 2 the Floor price shall be PKR 18 Million per acre. The Developer shall have flexibility in proposing a sales launch plan. However, the sales plan should have the following components: Down payment / Advance Payment 10 30% of the total sales price Equal quarterly / semi annual instalments of the remaining amount 6 / 3 (minimum) 14 / 7 (maximum) instalments The total period allowed to the Developer for implementing the sales launch plan and receiving of sales monies for the saleable area of the Project Site is 7 years from the Effective Date.
Technical Proposal and evaluation A) Financial Capability A 1) Net worth Tangible net worth (excluding any revaluation) of PKR 9 Billion. The Lead Member of the Consortium shall have a minimum net worth of PKR 3 Billion. Other members of the Consortium shall have a minimum net worth of PKR 1.25 Billion. A 2) Cash and funding lines Minimum cash, short term or liquid investments and funding lines of which at least 30% of the aggregate number should be demonstrated through cash and short term investments A 3) Project financing and implementation capability The Bidders must have completed project financing of different projects during the last 10 years. Successfully financed & implemented real estate / infrastructure project of a minimum project cost of PKR 15 Billion Bidder or the Consortium Member has minimum 20% equity stake in the projects offered for evaluation B) Technical Capability B- 1) Bidders must have completed / successfully developed real estate / infrastructure / SEZ projects in the last ten (10) years. Category 1 SEZs Category 2 Real Estate Projects Category 3 - Engineering Procurement Construction (EPC) and Item rate contracts experience of PPP infrastructure projects B 2) Industry commitments For every industrial commitment of a minimum of 25 acres, the bidder shall get (2.5) marks. For every industrial commitment of a minimum of 10 acres, the bidder shall get (1) marks. Bidder must demonstrate industrial commitment of at least one hundred (100) acres of occupancy and at least two commitments of 25 acres or more Max 35 20 marks 10 marks 05 marks Max 45 15 marks 20 marks
Technical Proposal and evaluation B 3)Team 05 marks B 4) O&M Experience O&M experience of an industrial park/special economic zone with the mix of following activities: Provision of electricity and/or other utilities; Solid waste management; Effluent management operations; and Operation of common facilities such as training and skills development; common machinery pool operations, exhibition centers etc. 05 marks Max 45 C) Business Plan Evaluation C 1) Concept Plan & Design Project design 2 marks Project plan for phase 1 and phase 2 2 marks Innovative features 2 marks Environmental considerations 2 mark Development strategy 1 mark 09 Marks C 2) Sales/Marketing Plan Marketing strategy; - 4 Marks ii. Pricing strategy; - 1 Mark iii. Leasing plan of permissible sub-lease areas; and - 2 Mark iv. Synchronization of the marketing and development plan. 1 Mark 08 marks C 3) O&M Plan The Bidder will be required to provide an O&M Plan for the operation and maintenance of the build facilities in the Industrial Park. 03 marks
Financial Proposal and evaluation The Bid Security - equivalent to five percent (5%) of the Bid Price Total Revenue Share to GoS discounted at ten percent (10%) (the Bid Price). Bidder who quotes the highest present value ( PV ) of revenue share using a fixed percentage share of revenue for each phase will be considered as the Preferred Bidder. This PV shall be computed at a discount rate of ten percent (10%) over a period of seven (7) years on the revenue arising from sales / sub-lease of industrial and commercial plots. Bidders are required to quote one revenue sharing percentage for each phase and also provide estimated revenues for each Phase. The minimum PV amount of any Bidder shall be above PKR 1.725 Billion. The bidder is required to share at least PKR 500 Million of revenue in Phase 1 in PV terms.
Financial Proposal and evaluation In Phase 1 the Floor price shall be PKR 12 Million per acre. The Bidder cannot sell any parcel of land at a rate below that of the Floor price. In Phase 2 the Floor price shall be PKR 18 Million per acre. The Preferred Bidder cannot sell any parcel of land at a rate below that of the Floor price.
Timelines (Tentative) ACTIVITY DATE Submission of Proposal (Deadline) 09th February, 2021 Opening of the Technical Proposal 09th February, 2021 Presentation of Proposals to TFEC 22nd February, 2021 Opening of Financial Bids 09th March, 2021 Announcing the Preferred Bidder Opening of Financial Bids + 6 Days Execution of PPP Agreement Withing 25 days of the announcement date
