INFRASTRUCTURE PROJECT FINANCE
Infrastructure, Housing & SME Finance Department
Infrastructure Financing – SBP Efforts
Revision in Guidelines
 Infrastructure Finance Task Force
 Facilitation in establishment of IDFI
 Capacity Building
 Consultative Group
 Infrastructure Finance Review
 Development Finance Review

Project & Structured Finance
2
SBP Guidelines/Regulatory Framework - History

Relaxation in Prudential Regulations for Infrastructure Project Financing (IPF) vide BPD Circular
No.25 dated July 04, 2003 (http://www.sbp.org.pk/bpd/2003/C25.htm).
 Debt equity relaxed to 80:20 for the Infrastructure projects
 “Concession Agreement/License/Right of Way” issued by Government accepted as a collateral

Guidelines For Infrastructure Project Financing (IPF) shared for consultation purposes vide BPD
Circular No.25 of July 23, 2005 (http://www.sbp.org.pk/bpd/2005/C23.htm)

Updated IPF Guidelines in August 31, 2010 vide No. IHFD/11 /191/ 2010. The salient features of
the revised guidelines: Includes the requirement for establishing a mechanism for generating feasibility reports and
assessing risk mitigation means in the development, construction, start-up and operation
stages of the project.
 Banks and DFIs to establish a proper process for the continuous monitoring of project
implementation to ensure proper utilization of the credit while relevant bank accounts will be
subject to audit by the SBP.
 Banks and DFIs encouraged to accept Concession Agreement/Licence issued by a government
agency as collateral.
 The institutions to ensure adequate insurance coverage against all potential risks applicable to
the project.
3
 At no point shall the bank’s exposure to the risk exceed the bank’s equity, and the exposure
availed by any borrower shall also not exceed 10 times the borrower’s equity.
SBP GUIDELINES- WHAT IS AN INFRASTRUCTURE?
Infrastructure Project means one of the followings:
a) A road, including toll road, fly over, bridge project.
b) A mass transit, urban bus, urban rail project.
c) A rail-bed, stations system, rail freight, passenger services project.
d) A telecommunication local services, long distance and value added project.
e) A power generation project.
f) A power transmission or distribution project by laying a network of new
transmission or distribution lines.
g) A natural gas exploration and distribution project.
h) An LPG extraction, distribution and marketing project.
i) An LPG import terminal, distribution and marketing project.
j) An LNG (Liquefied Natural Gas) terminal, distribution and marketing project.
k) A water supply, irrigation, water treatment system, sanitation and sewerage
system or solid waste management system project.
l) A dam, barrage, canal project.
m) A primary and secondary irrigation, tertiary (on-farm) irrigation project.
n) A port, channel dredging, shipping, inland waterway, container terminals
project.
o) An airport.
4
p) A petroleum extraction, refinery, pipeline project.
q) Any other infrastructure project of similar nature, notified by SBP.
INFRASTRUCTURE PROJECT FINANCING PROFILE- TRENDS (AMOUNT IN RS.
BILLIONS)
Infrastructure Project Financing Profile- Trends (Amount in Rs. Billions)
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Total Sanctioned
Amount
459.6
496.5
520.3
482.6
493.5
Amount Disbursed
(Cumulative)
203.2
251.1
349.0
356.2
356.3
Amount
Outstanding
234.4
275.9
298.5
265.5
289.3
No of Projects
(Cumulative)
291
311
338
337
364
NPLs
1.3
8.2
10.4
17.1
17.5
Project & Structured Finance
Description
*Cumulative Number of projects is the total number of projects less the matured ones.
5
TOTAL NUMBER OF INFRASTRUCTURE PROJECTS- SECTOR WISE
Sectors
Dec-09
Dec-10
Dec-11
Dec-12
Telecom
55
54
56
56
56
Power Generation
99
118
145
154
178
Power Transmission
28
36
32
29
20
Petroleum
21
21
25
24
24
LPG Extract. Dist.
9
6
5
4
7
LPG Import & Dist
6
5
5
3
Oil & Gas Exploration/Distr.
27
25
23
19
11
Road, Bridge, Flyover
19
18
18
20
36
Water Supply, Sanitation
2
2
2
2
2
Any other
25
26
27
26
28
291
311
338
337
364
Total
Project & Structured Finance
Dec-08
2
6
AMOUNT OUTSTANDING- SECTOR WISE ( IN BILLIONS)
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Telecom
47.9
48.3
50.3
42.0
48.2
Power Generation
95.3
136.4
180.4
160.7
176.2
Power Transmission
33.5
46.3
30.5
26.4
21.5
Petroleum
29.0
16.8
10.8
12.6
12.9
LPG Extraction/Dist.
1.3
0.9
0.7
0.5
0.9
LPG Import & Dist
0.3
0.2
0.2
0.1
0.5
Oil & Gas
Exploration/Distr.
9.3
8.8
6.1
4.8
4.4
Road, Bridge, Flyover
8.6
7.0
6.3
6.3
6.2
Water Supply, Sanitation
0.4
0.4
0.4
0.4
0.4
Any other
8.9
10.8
12.9
11.7
18.0
234.4
275.9
298.5
265.5
289.3
Total
Project & Structured Finance
Sectors
7
IIPF
Sectoral Trends - Outstanding Finance (Rs. Millions)
Sectors
Dec-12
Power Generation
Dec-11
4,350
Dec-09
Dec-08
4,668
4,630
2,688
1,361
3
200
500
500
10
10
10
4,840
3,198
1,871
Shipping/Container Terminals
Total
4,350
4,671
Project & Structured Finance
Oil & Gas Exploration and Distr.
Dec-10
Banking Sector wise Trends - Outstanding Finance (Rs. Millions)
Category
Dec-12
Dec-11
Dec-10
Dec-09
Dec-08
Private
616.8
692.4
695.0
635.0
350.0
Islamic
2,979.6
3,182.6
3,177.1
1,744.8
1,011.0
753.2
795.8
967.7
818.0
510.0
4,350
4,671
4,840
3,198
1,871
DFIs
Total
8
PROGRAM DETAILS
Group Photo:
Ground Floor )
 Tea Break:
 Lunch +Prayer Break:
 Evening Tea:

11:00 (Near Lift Lobby
11:15-11:30
1:30 to 2:30
3:30 to 03:45
THANK YOU
10