The principal Investment Promotion Agency of the province of Sindh to facilitate Foreign & Local Businesses

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Stephen Peters
6 years ago
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1 Sindh The Land of Endless Opportunities

2 SBI At a Glance SBI has been established as : The principal Investment Promotion Agency of the province of Sindh to facilitate Foreign & Local Businesses A bridge between the Government & the business community

3 Functions of SBI Focal Point for all Investment related activities in the Province Provide Framework for implementation of Investment Policy of the Federal Government and to support provincial endeavors Investment Protection by looking after legitimate interests of business / investors community Provide platform for Public Private interaction and promotion of Public Private Partnerships Provide One Window system at the Provincial level for facilitation of local and foreign investors seeking land, approvals, concessions, facilities and support from the Provincial Departments and authorities

World Bank Ranking Ease of Doing Business 2012 As per WB s Ease of Doing Business Report 2012, Pakistan is third ranking among the Asian Countries and 2nd best

4 World Bank Ranking Ease of Doing Business 2012 As per WB s Ease of Doing Business Report 2012, Pakistan is third ranking among the Asian Countries and 2nd best in the region in terms of trading across borders, getting credit and in protecting investors Sri Lanka China Pakistan Bangladesh India Iran

5 At the Center of Asian Growth Pakistan is Asia s trade, energy and transport corridor CENTRAL ASIA MIDDLE EAST

6 Sindh s Competitive Edge Financial Capital of Pakistan Karachi Karachi Stock Exchange ; Headquarters of Banks, Financial Institutions & Business houses 42% of LSM located here Two Seaports and an International Airport Regional Power House of the Future Thar Coal 100,000 MW for 300 Years Wind Corridor 50,000 MW potential Oil 56% of country s production Gas 70% of country s production Large Agricultural base with 5.45 m hectares of cultivable land Trained, educated & affordable workforce Coastline 350 Kms with tremendous opportunities for tourism and fisheries sector

7 Incentives for Investment Reduced foreign equity requirement (US $ 0.3M) Repatriation of 100% capital, profits, franchise fees Zero import duty on all capital goods, plants and machinery Zero duty on raw material imported for production of export material Zero rated import duty on Agri machinery (not manufactured in Pak) for registered corporate Agri projects A full incentive package for corporate farming

8 Public Private Partnership Sindh PPP Framework Sindh PPP Act; Country s first PPP law Provides legal cover to the Institutional Framework (PPP Policy Board, PPP Unit, PPP Projects and departmental PPP nodes) Regulates the contractual relationship between public and private sectors Covers processes regarding project approval and spending from Project Development Fund Viability Gap Fund

9 Public Private Partnership Government Support Licenses and clearances, utility connections for power, gas and water, land or rights of way Political risks,delay of agreed user fee adjustments, (MRG), early termination, credit enhancement, Force majeure and Demand risk Direct financial assistance Viability Gap Fund International Financial Structures & Frame-work PPP Sindh offers international parameters of concession like Force majeure cover, Political risk cover

11 Energy Situation in Pakistan Rising energy demand and significant energy shortage Energy Mix out of step with world norms Continuing long term trend of rising oil prices Natural gas demand exceeding supply Very large untapped potential source of power generation fuel in Thar Lignite

12 Thar Coal Mining & Power Generation Reserves: 175 billion tons Proximity: 270 kms from Karachi Port Energy Potential: 100,000 MW for 300 years Quality Stripping ratio: 6:1 Heating value: 5000 btu/lb Incentive Package Declared as Special Economic Zone Tax Exemption: 30 years IRR: 20% US dollar based Zero rated custom duties on import of plant & machinery

13 Thar Coalfields Blocks Layout

14 Comparison of Thar Lignite with other Countries Deposit Stripping Ratio (m³ : t) Thar 6.6 : (5000 Btu/lb) Kosovo 1:1 7.8 (3350 Btu/lb) Rhenish Area, Germany 4.9 : (3830 Btu/lb) Hambach, Germany 6.3 : (4510 Btu/lb) 9:1 7.1 (3050 Btu/lb) Hungary Greece 10:1 Heating Value (MJ/kg) 5.02 (2159 Btu/lb)

15 Wind Energy

16 Wind Energy Projects Land rent for Direct Impact Area: US 17 Cents per sq yd per annum Upfront tariff of cents/ kwh for (18 months CoD) Long term Power Purchase Agreements (20 years) backed by sovereign guarantees Coverage of Wind Speed Risk (for Cost Based Projects) Fiscal incentive through zero tax regime Guaranteed 17 18% IRR Government of Sind intends seek Interest of Well Established Companies for Joint Ventures in Wind Power Projects

18 Education City Project A high class Education and Health Institutions enclave planned in outskirts of Karachi to bring knowledge and skills together for growth and prosperity 9000 acres earmarked and Master Plan under finalization Core elements: Educational and Health institutions Research & Development within one boundary Residential facility Over 15 top national institutions have already been allotted land including Aga Khan Foundation; M/S Ziauddin; M/S SZABIST; Judge Business School Cambridge University Estimated Project Cost: USD 300 mn

20 Sukkur Dry Port Pakistan has 10 dry ports operated through various agencies Sukkur being 3rd largest city of Sindh Identified as commercially viable given the scale of Agro, Oil & Gas Businesses 20,000 container volume with an economic value of Rs. 4 billion (USD 45 million) per annum Potential for growth linked to ease of transactions Identified Land: 26 acres Mode: Public Private Partnership Estimated Project cost: ~ USD 10 million

22 Bus Rapid Transit Bus Rapid Transit (BRT) is a high quality metro like transit service Utilizes exclusive right-of-way bus lanes Project Involves: Construction of 3 corridors Facilitates 20,000 passengers on a person per hour per direction basis Fare Estimation 20 cents per passenger/per trip Estimated Annual Revenue for 3 Corridors: USD 90 million

23 Bus Rapid Transit; Project Costs BRT Line Stations BRT 1 Length (km) Est. Project Cost (USD) BRT BRT Total

25 Arfa Karim Technopolis (AKTP) Features: Spread over 200 acres in Education City Karachi Fully serviced plots for custom built offices Multi- fiber - optic and satellite internet connections Double circuit power supply; automated surveillance system Food court, convention halls, entertainment & sports Target Institutions: Training; Hardware Manufacturing; IT service providers Media agencies; Call centers; Graphic design simulations Project Structure: Government seeking Design Build Finance Operate Intervention under PPP mode Estimated Project Cost: USD 1.7 million

27 Keenjhar Lake Resort Keenjhar Lake - a Ramsar site Plan to create an Eco Tourist Resort under PPP mode 750 acres land located at a distance of 113 km from Karachi Resort Hotel; Chalets; Private Residential Farmhouses Conventions; Golf Course; and Recreation component : Amusement Parks; Water Sports and Boating facilities; Shopping mall, with local crafts, food court and Cineplex; Economic and Commercial Viability A Real Estate commercially viable project Entails big economic boost for the region Estimated Project Cost: US $117million

29 Shrimp Aqua Culture Farm Features: Spread over 2,000 acres of land in coastal areas of district Thatta & Badin The purpose is to develop mariculture in the province on scientific lines to increase production including high value fish/shrimp for export. Financials: Total infrastructure Development Cost: Approx USD 3.0 Million Internal rate of return: 22-25% Cost of 10 acres of Shrimp Farm: USD 54, 945/- only Project Structure: Government of Sindh is seeking investors for establishment of farms on 1000 acres Package

31 Drip Irrigation Plant Features: To set up a Drip Irrigation Pipe Manufacturing Unit based on Linear Low Density Polyethylene (LLDPE) Pipes. With a view to conserve water, expand cultivable land and increase productivity Local Manufacturing will reduce costs and improve availability of technical services, spare parts etc for sustainable use Mode: Being designed for implementation either by the Private sector or through Public Private Partnership

33 Waste to Energy (KSEZ) Khairpur Special Economic Zone (KSEZ) is being established at Khairpur for the setting up of an Industrial Zone. KSEZ intends to Set up 20 MW Captive Power Plant Based on Municipal Waste/ Agro Waste on Build-Own-Operate basis The cumulative Urban Waste from Khairpur and Sukkur would be adequate for the needs of this Project (estimated need 400 tones per day). The estimated cost per unit sold would come to around Rs. 8 (US $0.09). Project Structure: Government seeking Operator on Build-Own-Operate basis

35 Karachi Solid Waste Management Total Population of Karachi is approx 19 million Total Quantity of Solid Waste Generation is 8938 tons/day Existing Infrastructure does not provide Scientific Landfill sites, designated Garbage Transfer Station, Composting / Biogas Plants, Waste to Energy Plants Features: The Project aims to develop infrastructure for Transmission of all sewage to Treatment Plants for processing before disposal, Construction of landfill sites, garbage transfer stations, Collection and transportation mechanism and recycling, composting Installation of Waste to energy power generation plant.

36 Thank you

Thar Coal & Energy Board Government of Sindh

Thar Coal & Energy Board Government of Sindh www.sindhcoal.gos.pk Coal Fields of Pakistan & Thar Thar coalfield is approximately located between Latitudes 24 o 15 N and 25 o 45 N Longitudes 69 o 45 E and