Chak Bamu
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I have come across an article by Shaheen Sehbai on the issue of Karachi Metro plans and the status of KCR. It is an interesting article that gives useful information and paints a tantalizing scenario. Please read and let us explore the prospect of mass transit in Karachi which is long overdue.
I would advocate for completion of KCR as planned and an addition of Metro Bus lines as well so that people may benefit from KCR more fully. A few years down the road I would want a subway system for my Lahore as well, but that is a different story for perhaps a different class of civic and political leaders.
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Mass Transit
Mass Transit
By Shaheen Sehbai
While Nawaz Sharif has few political stakes in Karachi, his delivery boy, Shahbaz Sharif, has promised Karachiites a clone of the Lahore Metro. The latter was built in just 11 months.
Perhaps the Sharif brothers do not know that Karachi’s metro plan is already in its final stages. After years of planning, hard work and commitment, the plan now awaits only a political decision in Islamabad and Karachi, backed by sincere will to push it through.
But after the May 11 election results, and aforementioned claims by the junior Sharif, there are chances that Karachi may, once again, fall victim to political grandstanding.
Who should take the credit – the Sharifs of Raiwind? Or the PPP, which has thousands of reasons to claim that it delivered a mass transit system for the big city – something that should have happened decades ago.
Facts on the ground are revealing and according to a senior official working on the project, even until as recently as May 29, meetings were being held to push the project through, ensure better coordination between the centre and the provincial governments and not allow this urgent need to become food for a political dispute.
“Everything is ready for the project to go into the last stage of a financial close,” the official told me last week. This is a significant statement.
For a project costing some $2.6 billion, and involving years of surveys, studies, new laws, relocation of people, a committed international financier, fulfilling scores of conditionalities, provision of guarantees and much more, reaching the stage of a financial close is a feat in itself.
The key to such progress in the last about 10 years is the interest and commitment shown by Japan – not any other country claiming to be our best friend.
What the Japanese have done is remarkable and their only condition was, and is, that a 30 percent share in equipment and services must be given to Japanese companies while the project could be given to the best bidder, in an international tender, to be finalised under supervision or monitoring of Japanese and international consultants.
Additionally, there should not be, and there is no room for any kickbacks or commissions. If this is the case, Japan will provide an almost interest-free loan for a major portion of the $2.6 billion needed.
So what has already been done and what can the Sharif government do to give Karachi a mass system that any mega city with a population of 20 million (likely to rise to 31 million by 2030) must have?
The objective of the project is to provide a safe, efficient, reliable, speedy, modern urban railroad based commuter service to the citizens of Karachi. Officials working on the project confirm that the following has already been done:
During the latest studies, revival of Karachi Circular Railway (KCR) has been assigned as a priority project for implementation as land for right of way and construction yards is available, relocation of utility services is not required and no major traffic diversion will be involved.
KCR will be linking the finance and trade hub of the city with the sprawling urban sectors located in all the districts of Karachi.
The revival of KCR will be implemented under the technical and financial assistance of the government of Japan through Japan International Cooperation Agency (JICA).
Experts from Japan have carried out detailed studies of the project and all the environmental, social and engineering aspects have been dealt with.
The Japanese government is considering financial closure of KCR project as most of the over 40 conditions have been fulfilled including waiver of on-lending charges and exemption of General Sales Tax, Custom Duties and other federal levies by the ECC (Economic Co-ordination Committee) that have made the project financially viable.
Japan has committed almost interest free, or a soft term loan having interest rate of 0.2 percent per annum with a 40-year repayment period including a 10-year grace period. The official request for the loan was made in December 2008 but needs to be renewed with latest figures now.
KCR will be a modern rail based commuter system and will be a trendsetter in Pakistan.
Other facts involving the project include:
A task force decided to revive KCR as a modern commuter system in 2004.
A separate entity, Karachi Urban Transport Corporation (KUTC) was established as the vehicle of the KCR project with Pakistan Railways, the Government of Sindh and City District Government Karachi having share of 60 percent, 25 percent and 15 percent respectively.
The route length of dual track (dedicated for KCR) is 43.12km (elevated 22.86km, ground/surface 16.33km and tunnel 3.93km). The project includes 24 stations. Approximately 700,000 passengers will use this facility every day.
Interchange facilities with proposed BRT, LRT and connectivity with existing road network will be provided.
The project was approved by the Executive Committee of National Economic Council (Ecnec) on September 3, 2009 at a cost of $1.56 billion. The figure has gone up to about $2.6 billion because of exchange rate and other factors.
Environmental Impact Assessment Study (EIA), Initial Environmental Examination (IEE) report of resettlement site of project affectees, Resettlement Action Plan (RAP) of Project Affectees, Satellite Imagery of KCR route by SUPARCO have been completed and approved by relevant authorities.
* It has been formally agreed that KESC shall provide uninterrupted power supply for KCR project.
Pakistan Railways will provide the land for KCR loop line, resettlement of project affected persons.
Technically, according to experts, KCR is a mature project since all pre-requisites have been completed, right of way is available, basic infrastructure is there and all sorts of feasibility studies/surveys have been completed.
Most importantly, the soft term financing facility from Japan is available. Tokyo was even persuaded to relax its condition of purchase of Japanese equipment from a non-Japanese supplier. Therefore, a company with Japanese shares in the US, Turkey or China can also supply the equipment or services needed.
With all this ground work having been done, Nawaz Sharif needs to officially ask Japan for the loan, appoint an international consultant to go through the formalities and sign the deal.
A senior official said all this can be done in six to eight months and the Karachi Mass Transit system will be on its way – on the rails to be exact. The international tender can be floated within a year and by the time the Sharifs complete their term, the Karachi metro will be available as a political marketing tool for anyone claiming to love the mega city.
The showpiece Lahore Metro portion, which Shahbaz Sharif promised Karachi, can also be incorporated as almost 30km of road services will be needed to connect outlying areas with the main line. That is where the metro can be built but a separate study may be needed in this respect. The Sharifs know how to do it and who should do it. That is where the expertise of the Sharif brothers can be used, along with their connections.
Meanwhile, thousands of jobs will be created in Karachi, millions would be earned in businesses, supplies and sub-contracts, and economic activity will get back on track.
The only problem is that a tussle between the PPP government in Sindh and the centre can potentially derail the project, if issues such as ownership and political credit become a bone of contention.
“If we have come this far, the political leadership is mature enough not to let such a frivolous issue become a rail or road block,” a KCR official hoped, against hope.
The writer is group editor of The News International.
I would advocate for completion of KCR as planned and an addition of Metro Bus lines as well so that people may benefit from KCR more fully. A few years down the road I would want a subway system for my Lahore as well, but that is a different story for perhaps a different class of civic and political leaders.
--------------------------------------
Mass Transit
Mass Transit
By Shaheen Sehbai
While Nawaz Sharif has few political stakes in Karachi, his delivery boy, Shahbaz Sharif, has promised Karachiites a clone of the Lahore Metro. The latter was built in just 11 months.
Perhaps the Sharif brothers do not know that Karachi’s metro plan is already in its final stages. After years of planning, hard work and commitment, the plan now awaits only a political decision in Islamabad and Karachi, backed by sincere will to push it through.
But after the May 11 election results, and aforementioned claims by the junior Sharif, there are chances that Karachi may, once again, fall victim to political grandstanding.
Who should take the credit – the Sharifs of Raiwind? Or the PPP, which has thousands of reasons to claim that it delivered a mass transit system for the big city – something that should have happened decades ago.
Facts on the ground are revealing and according to a senior official working on the project, even until as recently as May 29, meetings were being held to push the project through, ensure better coordination between the centre and the provincial governments and not allow this urgent need to become food for a political dispute.
“Everything is ready for the project to go into the last stage of a financial close,” the official told me last week. This is a significant statement.
For a project costing some $2.6 billion, and involving years of surveys, studies, new laws, relocation of people, a committed international financier, fulfilling scores of conditionalities, provision of guarantees and much more, reaching the stage of a financial close is a feat in itself.
The key to such progress in the last about 10 years is the interest and commitment shown by Japan – not any other country claiming to be our best friend.
What the Japanese have done is remarkable and their only condition was, and is, that a 30 percent share in equipment and services must be given to Japanese companies while the project could be given to the best bidder, in an international tender, to be finalised under supervision or monitoring of Japanese and international consultants.
Additionally, there should not be, and there is no room for any kickbacks or commissions. If this is the case, Japan will provide an almost interest-free loan for a major portion of the $2.6 billion needed.
So what has already been done and what can the Sharif government do to give Karachi a mass system that any mega city with a population of 20 million (likely to rise to 31 million by 2030) must have?
The objective of the project is to provide a safe, efficient, reliable, speedy, modern urban railroad based commuter service to the citizens of Karachi. Officials working on the project confirm that the following has already been done:
During the latest studies, revival of Karachi Circular Railway (KCR) has been assigned as a priority project for implementation as land for right of way and construction yards is available, relocation of utility services is not required and no major traffic diversion will be involved.
KCR will be linking the finance and trade hub of the city with the sprawling urban sectors located in all the districts of Karachi.
The revival of KCR will be implemented under the technical and financial assistance of the government of Japan through Japan International Cooperation Agency (JICA).
Experts from Japan have carried out detailed studies of the project and all the environmental, social and engineering aspects have been dealt with.
The Japanese government is considering financial closure of KCR project as most of the over 40 conditions have been fulfilled including waiver of on-lending charges and exemption of General Sales Tax, Custom Duties and other federal levies by the ECC (Economic Co-ordination Committee) that have made the project financially viable.
Japan has committed almost interest free, or a soft term loan having interest rate of 0.2 percent per annum with a 40-year repayment period including a 10-year grace period. The official request for the loan was made in December 2008 but needs to be renewed with latest figures now.
KCR will be a modern rail based commuter system and will be a trendsetter in Pakistan.
Other facts involving the project include:
A task force decided to revive KCR as a modern commuter system in 2004.
A separate entity, Karachi Urban Transport Corporation (KUTC) was established as the vehicle of the KCR project with Pakistan Railways, the Government of Sindh and City District Government Karachi having share of 60 percent, 25 percent and 15 percent respectively.
The route length of dual track (dedicated for KCR) is 43.12km (elevated 22.86km, ground/surface 16.33km and tunnel 3.93km). The project includes 24 stations. Approximately 700,000 passengers will use this facility every day.
Interchange facilities with proposed BRT, LRT and connectivity with existing road network will be provided.
The project was approved by the Executive Committee of National Economic Council (Ecnec) on September 3, 2009 at a cost of $1.56 billion. The figure has gone up to about $2.6 billion because of exchange rate and other factors.
Environmental Impact Assessment Study (EIA), Initial Environmental Examination (IEE) report of resettlement site of project affectees, Resettlement Action Plan (RAP) of Project Affectees, Satellite Imagery of KCR route by SUPARCO have been completed and approved by relevant authorities.
* It has been formally agreed that KESC shall provide uninterrupted power supply for KCR project.
Pakistan Railways will provide the land for KCR loop line, resettlement of project affected persons.
Technically, according to experts, KCR is a mature project since all pre-requisites have been completed, right of way is available, basic infrastructure is there and all sorts of feasibility studies/surveys have been completed.
Most importantly, the soft term financing facility from Japan is available. Tokyo was even persuaded to relax its condition of purchase of Japanese equipment from a non-Japanese supplier. Therefore, a company with Japanese shares in the US, Turkey or China can also supply the equipment or services needed.
With all this ground work having been done, Nawaz Sharif needs to officially ask Japan for the loan, appoint an international consultant to go through the formalities and sign the deal.
A senior official said all this can be done in six to eight months and the Karachi Mass Transit system will be on its way – on the rails to be exact. The international tender can be floated within a year and by the time the Sharifs complete their term, the Karachi metro will be available as a political marketing tool for anyone claiming to love the mega city.
The showpiece Lahore Metro portion, which Shahbaz Sharif promised Karachi, can also be incorporated as almost 30km of road services will be needed to connect outlying areas with the main line. That is where the metro can be built but a separate study may be needed in this respect. The Sharifs know how to do it and who should do it. That is where the expertise of the Sharif brothers can be used, along with their connections.
Meanwhile, thousands of jobs will be created in Karachi, millions would be earned in businesses, supplies and sub-contracts, and economic activity will get back on track.
The only problem is that a tussle between the PPP government in Sindh and the centre can potentially derail the project, if issues such as ownership and political credit become a bone of contention.
“If we have come this far, the political leadership is mature enough not to let such a frivolous issue become a rail or road block,” a KCR official hoped, against hope.
The writer is group editor of The News International.
