Seeking Investor For CNG Bus Project

Opportunity Summary

Karachi is the third largest City of the world and largest city of the Pakistan having an estimated population ofRespond to this opportunity million. Unlike other mega cities of the world, there had not been an adequate transport system in Karachi.  Large portion of buses from 1970’sRespond to this opportunity’s, which don’t had proper sitting or standing space for the passenger and plus they were creating too much pollution and noise in the city.

Understanding the Transport requirement in Karachi, Federal Government of Pakistan had Started CNG Bus Project. In this project around 8000 CNG Buses needed to be procured. Project documentation and prequalification started from 2007. Initially Banks were willing to start this project however due to late delayed working procedures of the government departments and changing political scenario banks starting showing reluctance in the project.

Project importance can be understood that even after Government changed, PPP also endorse this project and only major change was just changing its name to Shaheed Benazir Bhutto CNG Bus project. Three PC 1 of the project had been approved.

To show the seriousness of the government willingness, State Bank of Pakistan issued its Notification on 4th March 2010. In April 2010, Prequalified operators were asked to submit the RFP for the above mentioned project, around 80% of the Buses were selected from my company and MOU had been signed between me and them.

Federal government had to provide RsRespond to this opportunity / as its share in this project. Rs 300 Million are transfer last year for this project.  First it was on the government part to provide the loan and leasing to the buses, however due to current financial position of the government , government is now suggesting to just to limit its role in providing incentives in terms of finances.

Overall project is very feasible commercially even.   Uptill now there is no organized transport system in Pakistan.  Different avenues of revenue can be generated while doing this systematically for example , Revenue from Marketing etc. The Refilling profit margin around 40% in CNG Station that will be more in MEGA Station. You had to understand Mega Station will breakeven in less then two years time and this 40% profit is for life time, which is from the sales of the Gas. In CNG Business you get profit first and then you pay the expenses.

There is huge requirement of CNG Buses on the road, It is my company target to bring at least 1000 CNG Buses on road in Karachi this year , Inshallah. However we may achieve this figure in phases.

I am looking for two things from you

1.     A Financial institute which can lease these buses to operators, we can signed or make arrangement which this financer. Operators can provide Financial Insurance Guarantee for this lease. 

Or

2.     An investor who is willing to come in this project, by this project we can not only get huge profit but also take political importance in the city. In addition to that this project is on CNG , later a huge fund and grant can be obtain by environmental agencies in respect of protection of environment. So simple point is that , this project with little investment can give huge benefits in the long term.

Risk associated with transport sector are always over rated, any risk in this project can be covered by insurance risk like terrorism, fire, etc. In addition to that Insurance companies are willing to provide Business interruption insurance for this project.

If there is any more information you required please let me know.

Looking forward to build long term business relationship

Regards,

Muhammad Faheem AShraf