FAQs

REDAMCO undertakes commercial real estate projects, renovation of existing railway properties, and leasing land for commercial purpose such as petrol pumps, retail outlets, advertising, parking facilities etc.

No. REDAMCO’s model is based on leasing rather than selling to ensure long-term revenue while retaining ownership of Pakistan Railways’ land.

All financial transactions follow Public Procurement Rules (PPRA) and are subject to internal, external and government audits to ensure accountability and transparency.

Yes. International investors can participate in REDAMCO’s development or leasing projects, subject to approval from the competent authority and compliance with Pakistan’s investment laws.

Private developers and investors can collaborate through Expressions of Interest (EOIs), Requests for Proposals (RFPs), or Public–Private Partnerships (PPPs) announced on official government and REDAMCO channels.

The process includes:

1. Identification of surplus land.
2. Feasibility and valuation studies.
3. Advertisement for bids.
4. Proposal evaluation and Board approval.
5. Lease agreement signing under approved terms and conditions.

A bid security (also known as an Earnest Money Deposit) is a refundable amount submitted along with your bid to ensure genuine participation. It safeguards REDAMCO against non-serious bidders

All bid security payments must be made through Demand Draft in favor of “Railway Estate Development and Marketing Company”. Cash transactions are not allowed.

For unsuccessful bidders: The bid security is refunded after finalization of the lease or award.

For the successful bidder: The bid security is adjusted against the lease premium or initial payment as applicable

A lease premium is the upfront payment made by the successful bidder for award of contract. It is separate from the annual lease rents or other charges.

The lease premium is generally non-refundable once the lease agreement is executed after peaceful handing over of the possession of site. Refunds, if any, are decided on case-to-case basis and governed by the terms and conditions of the tender or lease offer document.

Payment of the lease premium and rentals must be made through Demand Draft in favor of “Railway Estate Development and Marketing Company”. Cash transactions are strictly prohibited.

Advance Notice: Issued before receivables becomes due.

Due Date Notice: sent when the amount becomes due.

Grace Period Notice: Sent after the grace period expires.

Final Notice: Intent to terminate issued if payment remains unpaid.

Yes, REDAMCO may enter into joint ventures, public-private partnerships, or commercial collaborations after obtaining necessary approvals from its Board and the competent authority as defined under applicable rules.

What is the procedure for leasing land through REDAMCO?

The process typically involves:

1. Identification of land and its categorization as non-operational by Pakistan Railways.
2. Engagement of Transaction Advisory Services (TAS) for feasibility and valuation.
3. Approval of the business model by the competent forum (Railway Board / REDAMCO Board as delegated).
4. Competitive bidding through open tendering
5. Execution of lease agreement with successful bidder after due approval.

Under the Railway Land and Property Rules, 2023, long-term leases may be granted for a period up to 33 years, extendable for another term not exceeding the original period, subject to approval by the competent authority.

Lease rentals are determined through professional valuation conducted by independent valuers or transaction advisors, ensuring that the rate reflects market value and aligns with the recommendations approved by the competent authority.