Islamabad: The government on Tuesday approved the project proposal and transaction structures for the Karachi Circular Railway (KCR)’s construction and operation on public-private mode at an estimated cost of PKR 220 billion, according to news sources.
As per the newly-approved transaction structure by the Public-Private Partnership Authority (P3A), the private sector will fund, develop and operate the track on a commercial basis. These decisions were announced in a meeting presided over by Planning and Development Minister Asad Umar. It was highlighted that a revised umbrella PC-1 will be submitted to Central Development Working Party (CDWP) with cost estimates. Under the new estimates, the government will fund 40% of the work and at the outset to help the concessionaire operationalize the project.
Moreover, the P3A board has decided that the railway board will be requested to lease 13 properties en route to the KCR project for 99 years to meet the initial financing requirements. The meeting was informed that the project offers phenomenal benefits in terms of climate protection, time-saving, vehicle operation costs and contribution towards promotion of gender equality and spill-over tax impact.
Minister Umar called the project a vital part of the Karachi Transformation Plan and asked for the completion of the project appraisal proceedings for the Karachi-Pipri Freight Corridor.
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