History & Success Story of Deokjae
 Board of Directors
 Senior Management
 Regulatory Framework for PPP
 Maiden project of DCCL: Dualisation of Hyderabad
Mirpurkhas road a PPP Project
 Project Summary
 Current Snaps of Hyderabad Mirpurkhas Dual
Carriage Road

Deokjae Construction Company (Pvt.) Ltd.

Mr. Jaffer Ali Naqvi, who is Country Head of Deokjae is
also a well known and reputable entrepreneur in auto
parts industry. Bringing his expertise into play and
keeping in view the current economic, political and
liquidity situation of Pakistan he found some scope and
charm toward infrastructure development.

As a result of Mr. Jaffer’s long term vision, Deokjae
Construction Company (Pvt.) Ltd. with technical
collaboration of Deokjae Construction Company
Limited, Korea came into existence on March 13, 2009
as a Private Limited Company.
Deokjae Construction Company (Pvt.) Ltd.

Deokjae’s mission is to explore construction
opportunities in South Asia possessing Public-Private
Partnership (PPP) nature.

Short term objective of Deokjae was attainment of
“Hyderabad Mirpurkhas Dual Carriage Road’ project.
This was the 1st time that Government of Sind (GoS)
had announced a PPP project. The company bid
successfully, and was awarded the contract.

Concession agreement was signed b/w GoS officials
and Deokjae on November 11, 2009.
Deokjae Construction Company (Pvt.) Ltd.

53.59% of work has been completed till August 31, 2011,
which includes completion of Earthwork 98%, Road &
Pavement 44%, Drainage work 82% and Bridge work 61%.

State-of-the-art equipment is being used and Korean
technical team is also monitoring the whole project. Four
Koreans are employed for this purpose.

The company has contracted with Korean Expressway
Corporation (KEC) for Operations & Maintenance (O&M) for
Dual Carriage Road that has the credit of constructing
renowned expressways in Korea.

Global Infra Fund (GIF), Korea are interested to invest in
Deokjae Construction.
Deokjae Construction Company (Pvt.) Ltd.

Mr. Kim Sun Ho (Chariman)

Syed Masood Raza (Chief Executive Officer)

Mr. Sang Yool Lee (Director)

Mr. Syed Ameer Haider (Director)

Mr. Hassan Mahmood (Director)
Deokjae Construction Company (Pvt.) Ltd.

Syed Jaffer Ali Naqvi (Country Head)

Syed Mujahid Hussain Naqvi (CFO)

Mr. Kim Kyu Nam (Technical Director)
Deokjae Construction Company (Pvt.) Ltd.

The strength of Pakistan’s PPP program is that substantial
groundwork has already been done. Framework and
guidelines have been prepared and a national PPP Centre
has been developed.

The overall structure of PPP program comprises of PPP
policy, Viability Gap Fund, Risk Management Framework, a
Financing facility and Infrastructure Project Development
Facility (IPDF).

The PPP policy was approved in November 2007 with a
revised version approved by Cabinet in January 2010.

GoS have their own PPP Law.
Deokjae Construction Company (Pvt.) Ltd.

Deokjae has entered into several agreements with different
kinds of parties. Names of those agreements are:
• Direct Agreement (Concession Agreement)
• Share Pledge Agreement
• Project Funds Agreement
• BOT Concession Agreement
• Minimum Revenue Funding Agreement
• Debt Payment Amount Funding Agreement
• HMDCR PPP Project Contract No. HM-01
(Construction Contract)
• Developer Assignment Deed
• EPC Price Escalation Agreement
• Developer Special Power of Attorney
• Subordinated Debt Agreement
• Special Power of Attorney
• Senior Facility Agreement
• Construction Direct Agreement
• Security Trust Deed
• Project Assessment Deed
• Project Letter of Hypothecation
Deokjae Construction Company (Pvt.) Ltd.

The project includes the construction of a dual
carriageway of Sind. This includes reconstruction,
improvement and rehabilitation existing single
carriageway of approximately 60 km road in
accordance with international design standards along
with the conversion into dual carriageway with a
design speed of 100 km/hr.

The current existing highway is only 7.3 meters wide
and is used for dual carriageway.
Deokjae Construction Company (Pvt.) Ltd.
PROJECT COST
Pak Rupees 6.2bn
PROJECT NATURE
Public Private Partnership (PPP)
CONSTRUCTION TENURE
30 months inclusive of 6 months designing period
LENGTH OF ROAD
60 km
FINANCING STRUCTURE
Public-Private support:
Private support: 1.85bn (Equity: 1.75bn & Loan: 0.1bn)
Public support: 1.85bn (Govt. of Sind – subordinated debt)
Banking consortium: 2.5bn (Commercial Debt)
FINANCING STRUCTURE %
Equity: 59.7% & Debt: 40.3%
PROJECT STATUS
53.59% completed (Till August 31, 2011)
GUARANTEES by GoS
Built-in MRG: Rs. 1.69bn
Projected revenue shortfall covered: 10%
MSG: 0.81bn
BREAKEVEN
In the 9th year of operations
Deokjae Construction Company (Pvt.) Ltd.
Deokjae Construction Company (Pvt.) Ltd.
Thank You for your precious time!
Deokjae Construction Company (Pvt.) Ltd.