Islamabad: The next Joint Coordination Committee (JCC) meeting, which is now being held this Friday (July 16), is expected to deliberate on the multibillion-dollar Main Line (ML)-1 railway project, according to news reports. When approved, the railway line project, which runs from Karachi to Peshawar, will be completed in seven to eight years.
The 10th JCC is scheduled to take place virtually on July 16, 2021, and will cover a wide range of development projects taking place under the China Pakistan Economic Corridor (CPEC) initiative. The ML-1, however, will be discussed on priority as there are some outstanding differences between the two countries on cost estimation of the project.
According to details, the Central Development Working Party (CDWP) and the Executive Committee of the National Economic Council (ECNEC) from Pakistan have estimated the total cost of the project to be USD 7.2 billion, while the Chinese side has estimated the total value of the project to be between USD 9.2 and 9.5 billion. The difference in estimated cost is the bone of contention between the two sides.
The second difference in the project is the makeup value, which the Chinese government is offering at a rate of 2.4 %, consistent with previous projects; however, the Pakistani side has argued that due to the massive nature of the project and high building costs, funds should be provided at a rate of 2%.
Furthermore, according to the sources, the Pakistani government would try to encourage the Chinese government to start the bidding process and then raise the cost if needed.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
