Islamabad: Pakistan and China have agreed to make amendments to the framework of the Pakistan Railways’ Mainline-1 (ML-1) project, a news source reported. The aim of these changes is to reduce the size of the project. This development is expected to help complete the construction of this strategically significant project, which has been delayed for some time now.
The amendments will divide the completion phase of the project in three phases. Previously, the project was set to be completed in three years. The updated framework indicates that it will now take at least six years, starting from the day of the groundbreaking, to complete it.
According to government sources, the project measured 1,827 kilometres previously; with its length now having been reduced to 1,680 kilometres. Additionally, the new agreement states that the scope of the framework will not include the construction of the proposed 163-km long double line between Karachi and Hyderabad. The government has decided to execute this project on the basis of Public-Private Partnership, or a Build Operate & Transfer arrangement, instead. The authorities concerned will proceed with the project after the completion of its commercial and financial feasibility study. Furthermore, the amended framework also excludes the Havelian-Textile rail track.
The government plans to complete the ML-1 project in an Engineering, Procurement & Construction (EPC) mode under a sovereign deal. To implement the project, both countries will sign an ‘addendum to framework’ agreement. This will take place during Prime Minister (PM) Imran Khan’s upcoming visit to China.
The Chinese consortium is expected to submit the feasibility design report by April 15, 2019. The original plan dictated to complete ML-1 in two phases. China had offered to provide 85% of its cost in the form of a concessionary loan. According to the original plan, the project was estimated to cost USD 8.2 billion. This makes it the largest project to be initiated under the China-Pak Economic Corridor (CPEC) initiative.
Sources reveal that Chinese contractors possess the financial and technical capacity to complete the three phases simultaneously. But the government has decided to execute ML-1 in phases that will take more time, because Pakistan Railways can’t close its commercial traffic. Also, the government does not have the fiscal space to allocate the rupee component in the development budget in one go, sources added.
