Pakistan Railway Projects.
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ISLAMABAD: The upgrade work on two mega projects of China Pakistan Economic Corridor (CPEC), including Main Line-one (ML-1) and Karachi Circular Railways (KCR), would start from March, a high-level meeting decided in Beijing.
The government sources told The News on Sunday that the two sides would follow the consensus held in October last year in the Chinese capital. Besides, the Chinese ambassador to Pakistan, Nong Rong has said that the China-aided Eastbay Expressway of Gwadar port has begun operation since June, enhancing connectivity of the port, which is now transporting 0.2m tonnes of fertilizer.
He recalled that under the CPEC, 192,000 jobs were created, 6000MW of electricity was generated, 510 km of highway was constructed and 886 km of transmission was set up, which laid a solid foundation for Pakistan’s socio-economic development. “In fact, Pakistan’s trade surplus of agricultural products is expected to exceed a record high of $1 billion in 2022,” the ambassador said.
The Chinese sources said the ML-1 is the largest infrastructure project of CPEC worth $6.86 billion. The project involves the up-gradation and dualization of ML-1 to increase the operating speed from the current 60 km/h and 105 km/h to a proposed 160 km/h. The project also involves the establishment of a dry port near Havelian. ML-1, the Karachi to Peshawar line, is one of four main railway lines in Pakistan, operated and maintained by Pakistan Railways. The line begins from Karachi City Station or Kiamari station and ends at Peshawar Cantonment Station. The total length of this railway line is 1,687 kilometers. There are 184 railway stations from Kiamari to Peshawar Cantonment on this line. The line serves as the main passenger and freight line of the country. 75 percent of the country’s cargo and passenger traffic uses the ML-1. The existing timeline for the completion of ML-1 extends to December 2024. Under the umbrella of this project, level crossing will be converted into flyovers or underpasses so that the speed can be increased by getting rid of the obstacles.
The project could not be started during the PTI government due to China’s concerns over debt repayment plan, the sources pointed out. ML-I railway line project is very important to achieve connectivity between Gwadar (Pakistan) and Kashgar (China) through a train track that will provide the easiest and safest way to transport oil between China and the Middle East, saving China travel costs. The railway line upgrade will provide faster travel facilities to the people of Pakistan and commercial benefits like bringing raw materials to the Special Economic Zone (SEZ) and faster delivery of finished goods to remote areas of the country as well Gwadar port. Another great benefit is that coal will be delivered for fuel to the power plants through the railway track, which will also generate good revenue for the railways. Due to unnecessary delays, the cost of this historic project has increased. The Imran’s PTI government failed to convince the IMF and the Chinese government to start the project. Another reason for the increase is the recent floods in Pakistan, which has destroyed the railway lines of most parts of the country. As soon as the new government was formed in April, 2022, Pakistan’s Minister for Planning Ahsan Iqbal restarted the discussion with the Chinese authorities on revival of the project.
The revived KCR operation is intended to become an inter-regional public transit system in Karachi, with an aim to connect the city centre with several industrial and commercial districts within the city and the outlying localities. In May 2017, the then government approved Rs27.9 billion ($120 million) restoration package for the KCR. However, delays and disputes with the Sindh provincial government ultimately led to cancellation of the funding. KCR would be constructed with the cost of Rs294 billion and used by 500,000 passengers/day, which would increase to 1 million in later years. KCR will have 250 modern driverless electric bullet trains, which would run 17-hours a day throughout a week. The KCR project would be run by the Sindh government through Karachi Urban Transport Corporation (KUTC) and likely to be completed by 2025.
ISLAMABAD: The upgrade work on two mega projects of China Pakistan Economic Corridor (CPEC), including Main Line-one (ML-1) and Karachi Circular Railways (KCR), would start from March, a high-level meeting decided in Beijing.
The government sources told The News on Sunday that the two sides would follow the consensus held in October last year in the Chinese capital. Besides, the Chinese ambassador to Pakistan, Nong Rong has said that the China-aided Eastbay Expressway of Gwadar port has begun operation since June, enhancing connectivity of the port, which is now transporting 0.2m tonnes of fertilizer.
He recalled that under the CPEC, 192,000 jobs were created, 6000MW of electricity was generated, 510 km of highway was constructed and 886 km of transmission was set up, which laid a solid foundation for Pakistan’s socio-economic development. “In fact, Pakistan’s trade surplus of agricultural products is expected to exceed a record high of $1 billion in 2022,” the ambassador said.
The Chinese sources said the ML-1 is the largest infrastructure project of CPEC worth $6.86 billion. The project involves the up-gradation and dualization of ML-1 to increase the operating speed from the current 60 km/h and 105 km/h to a proposed 160 km/h. The project also involves the establishment of a dry port near Havelian. ML-1, the Karachi to Peshawar line, is one of four main railway lines in Pakistan, operated and maintained by Pakistan Railways. The line begins from Karachi City Station or Kiamari station and ends at Peshawar Cantonment Station. The total length of this railway line is 1,687 kilometers. There are 184 railway stations from Kiamari to Peshawar Cantonment on this line. The line serves as the main passenger and freight line of the country. 75 percent of the country’s cargo and passenger traffic uses the ML-1. The existing timeline for the completion of ML-1 extends to December 2024. Under the umbrella of this project, level crossing will be converted into flyovers or underpasses so that the speed can be increased by getting rid of the obstacles.
The project could not be started during the PTI government due to China’s concerns over debt repayment plan, the sources pointed out. ML-I railway line project is very important to achieve connectivity between Gwadar (Pakistan) and Kashgar (China) through a train track that will provide the easiest and safest way to transport oil between China and the Middle East, saving China travel costs. The railway line upgrade will provide faster travel facilities to the people of Pakistan and commercial benefits like bringing raw materials to the Special Economic Zone (SEZ) and faster delivery of finished goods to remote areas of the country as well Gwadar port. Another great benefit is that coal will be delivered for fuel to the power plants through the railway track, which will also generate good revenue for the railways. Due to unnecessary delays, the cost of this historic project has increased. The Imran’s PTI government failed to convince the IMF and the Chinese government to start the project. Another reason for the increase is the recent floods in Pakistan, which has destroyed the railway lines of most parts of the country. As soon as the new government was formed in April, 2022, Pakistan’s Minister for Planning Ahsan Iqbal restarted the discussion with the Chinese authorities on revival of the project.
The revived KCR operation is intended to become an inter-regional public transit system in Karachi, with an aim to connect the city centre with several industrial and commercial districts within the city and the outlying localities. In May 2017, the then government approved Rs27.9 billion ($120 million) restoration package for the KCR. However, delays and disputes with the Sindh provincial government ultimately led to cancellation of the funding. KCR would be constructed with the cost of Rs294 billion and used by 500,000 passengers/day, which would increase to 1 million in later years. KCR will have 250 modern driverless electric bullet trains, which would run 17-hours a day throughout a week. The KCR project would be run by the Sindh government through Karachi Urban Transport Corporation (KUTC) and likely to be completed by 2025.
ghazi52
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January 15, 2023
CHINESE firm officials clear a completely built unit of flat wagon for shipment to Pakistan.—Courtesy PR
LAHORE: Part of the 820 wagons procurement contract, Pakistan Railways (PR) is set to receive the first consignment of completely built units (CBUs) of 70 high-capacity flat wagons from China on Monday.
“Despatched on Dec 25 by the Chinese firm, the wagons will reach Karachi port on Monday,” PR’s Chief Mechanical Engineer Abdul Haseeb told Dawn on Saturday. “These are the flat wagons on which containers would be kept and used for the transportation of various goods to various parts of the country from Lahore, Karachi and other major stations,” he added.
Mr Haseeb said under the contract, the Chinese firm is also responsible to manufacture 200 CBUs including 70 flat, 70 open-top and 40 covered wagons and 20 brake vans, he said.
According to the contract, the PR is procuring as many as 800 high-capacity wagons and 20 brake vans.
A letter of credit had already been opened in March last year.
Under various clauses of the contract, 600 wagons are to be manufactured in Pakistan at various carriage factories of Pakistan Railways in association with the Chinese engineer.
The arrival of 46 high-speed modern coaches from China on Nov 27, 2022 paved the way for the provision of state-of-the-art travelling facilities to the masses. Arrangements have also been made to start manufacturing of 184 similar coaches (passenger, luggage and brake vans) under the technology-transfer component of the 230 coaches’ purchase contract.
Since the test-run of these coaches has recently been completed, the PR has started using them in various express trains on the main-line reportedly. Modern train coaches and wagons can run at speeds of 160km and 80 km per hour.
“In November 2021, when looking to upgrade and enhance long-distance passenger services in the country, the federal government had inked an agreement with China Railway Construction Corporation Tangshan Locomotive and Rolling Stock Company for the supply of 230 high-speed coaches for PR.
Similarly, another contract was also signed with another company to provide 820 wagons,“ explained an official source in the PR.
Meanwhile, a spokesman for the department says that the remaining 130 CBUs of wagons would be received by end of March this year.
“The manufacturing of the 620 wagons under the technology transfer component of the contract will help Pakistan save its foreign reserves. The new wagons would earn a revenue of Rs1.5 billion per annum,” he said, adding that the new wagons can run at a speed of 80km and 100km per hour with 60-tonnes and 70-tonnes loads respectively,“ the spokesman explained.
Published in Dawn, January 15th, 2023
Pakistan Railways to receive 70 flat wagons
Khalid HasnainJanuary 15, 2023
CHINESE firm officials clear a completely built unit of flat wagon for shipment to Pakistan.—Courtesy PR
LAHORE: Part of the 820 wagons procurement contract, Pakistan Railways (PR) is set to receive the first consignment of completely built units (CBUs) of 70 high-capacity flat wagons from China on Monday.
“Despatched on Dec 25 by the Chinese firm, the wagons will reach Karachi port on Monday,” PR’s Chief Mechanical Engineer Abdul Haseeb told Dawn on Saturday. “These are the flat wagons on which containers would be kept and used for the transportation of various goods to various parts of the country from Lahore, Karachi and other major stations,” he added.
Mr Haseeb said under the contract, the Chinese firm is also responsible to manufacture 200 CBUs including 70 flat, 70 open-top and 40 covered wagons and 20 brake vans, he said.
According to the contract, the PR is procuring as many as 800 high-capacity wagons and 20 brake vans.
A letter of credit had already been opened in March last year.
Under various clauses of the contract, 600 wagons are to be manufactured in Pakistan at various carriage factories of Pakistan Railways in association with the Chinese engineer.
The arrival of 46 high-speed modern coaches from China on Nov 27, 2022 paved the way for the provision of state-of-the-art travelling facilities to the masses. Arrangements have also been made to start manufacturing of 184 similar coaches (passenger, luggage and brake vans) under the technology-transfer component of the 230 coaches’ purchase contract.
Since the test-run of these coaches has recently been completed, the PR has started using them in various express trains on the main-line reportedly. Modern train coaches and wagons can run at speeds of 160km and 80 km per hour.
“In November 2021, when looking to upgrade and enhance long-distance passenger services in the country, the federal government had inked an agreement with China Railway Construction Corporation Tangshan Locomotive and Rolling Stock Company for the supply of 230 high-speed coaches for PR.
Similarly, another contract was also signed with another company to provide 820 wagons,“ explained an official source in the PR.
Meanwhile, a spokesman for the department says that the remaining 130 CBUs of wagons would be received by end of March this year.
“The manufacturing of the 620 wagons under the technology transfer component of the contract will help Pakistan save its foreign reserves. The new wagons would earn a revenue of Rs1.5 billion per annum,” he said, adding that the new wagons can run at a speed of 80km and 100km per hour with 60-tonnes and 70-tonnes loads respectively,“ the spokesman explained.
Published in Dawn, January 15th, 2023
Unfortunately we have learnt bitterly that the new contracts with Chinese for our SGR were no good; hence Turkish firms clinched the deal. Same is happening now in Uganda..,.,
Pakistan Railways to receive 70 flat wagons
Khalid Hasnain
January 15, 2023
CHINESE firm officials clear a completely built unit of flat wagon for shipment to Pakistan.—Courtesy PR
LAHORE: Part of the 820 wagons procurement contract, Pakistan Railways (PR) is set to receive the first consignment of completely built units (CBUs) of 70 high-capacity flat wagons from China on Monday.
“Despatched on Dec 25 by the Chinese firm, the wagons will reach Karachi port on Monday,” PR’s Chief Mechanical Engineer Abdul Haseeb told Dawn on Saturday. “These are the flat wagons on which containers would be kept and used for the transportation of various goods to various parts of the country from Lahore, Karachi and other major stations,” he added.
Mr Haseeb said under the contract, the Chinese firm is also responsible to manufacture 200 CBUs including 70 flat, 70 open-top and 40 covered wagons and 20 brake vans, he said.
According to the contract, the PR is procuring as many as 800 high-capacity wagons and 20 brake vans.
A letter of credit had already been opened in March last year.
Under various clauses of the contract, 600 wagons are to be manufactured in Pakistan at various carriage factories of Pakistan Railways in association with the Chinese engineer.
The arrival of 46 high-speed modern coaches from China on Nov 27, 2022 paved the way for the provision of state-of-the-art travelling facilities to the masses. Arrangements have also been made to start manufacturing of 184 similar coaches (passenger, luggage and brake vans) under the technology-transfer component of the 230 coaches’ purchase contract.
Since the test-run of these coaches has recently been completed, the PR has started using them in various express trains on the main-line reportedly. Modern train coaches and wagons can run at speeds of 160km and 80 km per hour.
“In November 2021, when looking to upgrade and enhance long-distance passenger services in the country, the federal government had inked an agreement with China Railway Construction Corporation Tangshan Locomotive and Rolling Stock Company for the supply of 230 high-speed coaches for PR.
Similarly, another contract was also signed with another company to provide 820 wagons,“ explained an official source in the PR.
Meanwhile, a spokesman for the department says that the remaining 130 CBUs of wagons would be received by end of March this year.
“The manufacturing of the 620 wagons under the technology transfer component of the contract will help Pakistan save its foreign reserves. The new wagons would earn a revenue of Rs1.5 billion per annum,” he said, adding that the new wagons can run at a speed of 80km and 100km per hour with 60-tonnes and 70-tonnes loads respectively,“ the spokesman explained.
Published in Dawn, January 15th, 2023
It is good to have competition.
I remember we used to bring in textile machinery from Pakistan long time ago but then when our economy went into dolldrums, imports of garments became the norm and our domestic textiles totally collapsed under the weight of dumping from not only china but other asian countries.
ghazi52
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Inspection of 70 wagons arriving at Karachi port begins.
Karachi to Peshawar trial will start in the next 4 days.
This is the plan of the 820 wagons.
The remaining 750 wagons will be assembled at Railway Loco Shop Mughalpura.
New wagons will increase railway revenue by Rs 1.5 billion annually...
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Inspection of 70 wagons arriving at Karachi port begins.
Karachi to Peshawar trial will start in the next 4 days.
This is the plan of the 820 wagons.
The remaining 750 wagons will be assembled at Railway Loco Shop Mughalpura.
New wagons will increase railway revenue by Rs 1.5 billion annually...
کراچی پورٹ پہنچنے والی 70 ویگنیں | کراچی پورٹ پہنچنے والی 70 ویگنوں کی انسپکشن شروع اگلے 4 روز میں کراچی تا پشاور ٹرائل کا آغاز ہو گا یہ 820 ویگنز کا منصوبہ ہے باقی 750 ویگنیں ریلوے لوکو... | By China Pakistan Economic Corridor - CPECFacebook
کراچی پورٹ پہنچنے والی 70 ویگنوں کی انسپکشن شروع اگلے 4 روز میں کراچی تا پشاور ٹرائل کا آغاز ہو گا یہ 820 ویگنز کا منصوبہ ہے باقی 750 ویگنیں ریلوے لوکو...
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ghazi52
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LAHORE: The Pakistan Railways (PR) is going to start from Jan 27 the commercial operations of the new state-of-the-art passenger 46 coaches recently imported from China as the completely built units (CBUs) manufactured by a Chinese firm under an agreement.
The coaches’ operation would begin with the composition of the Green Line Express Train that will resume running from Islamabad to Karachi via Rawalpindi, Lahore, Khanewal and Sukkur.
The operation of the train was suspended in August last year due to the floods and it would be resumed with new Chinese coaches, Dawn has learnt.
“The trial run of the coaches has been completed. After the trial, it has been decided to operate them as a part of Green Line Express Train from Margalla Station (Islamabad) to Karachi with effect from Jan 27,” an official source in the railways said while talking to Dawn on Tuesday.
“The new coaches are well-equipped with modern facilities including Wifi, dining, LCDs, phone charging and others. All services will be free of cost,” he added.
The official said 46 new coaches would comprise three rakes—one will move from Islamabad, another from Karachi and the third would be stationed at Lahore as a spare one.
It merits mentioning that the 46 high-speed modern coaches were received as CBUs from China on Nov 27 last year, paving the way for provision of state-of-the-art rail travel facilities to the masses.
Arrangements have also been made to start manufacturing of 184 similar coaches (passenger, luggage and brake vans) under the technology-transfer component of the 230 coaches’ purchase contract. Since the test run of all 46 coaches was recently completed, the railways planned to use them in various express trains on the main line.
“Modern train coaches can run at the speed of 160km per hour,” the official said, adding that the federal government had, in November 2021, inked an agreement with the China Railway Construction Corporation Tangshan Locomotive and Rolling Stock Company for the supply of 230 high-speed coaches to the Pakistan Railways.
PR Chief Executive Officer (CEO) Salman Sadiq Sheikh has termed the commercial operation of the passenger coaches the beginning of a new era of modern traveling in Pakistan.
“The facilities, which will be made available to the passengers during the journey by the Green Line will include high tea, breakfast and lunch of a five-star hotel, high-quality bedding,
infotainment and WiFi,” the CEO said while speaking to participants in an online open court he held at the PR Headquarters on Tuesday.
He said the PR, after the hard work, succeeded in restoring operation of its freight and passenger trains gradually, which were suspended due to floods. To a question, he said despite an increase in the fares and freight charges following increase in the POL prices, the PR passenger train fares and goods’ train charges were much less compared to the road transport.
New Chinese railway coaches to run from Jan 27
January 25, 2023
LAHORE: The Pakistan Railways (PR) is going to start from Jan 27 the commercial operations of the new state-of-the-art passenger 46 coaches recently imported from China as the completely built units (CBUs) manufactured by a Chinese firm under an agreement.
The coaches’ operation would begin with the composition of the Green Line Express Train that will resume running from Islamabad to Karachi via Rawalpindi, Lahore, Khanewal and Sukkur.
The operation of the train was suspended in August last year due to the floods and it would be resumed with new Chinese coaches, Dawn has learnt.
“The trial run of the coaches has been completed. After the trial, it has been decided to operate them as a part of Green Line Express Train from Margalla Station (Islamabad) to Karachi with effect from Jan 27,” an official source in the railways said while talking to Dawn on Tuesday.
“The new coaches are well-equipped with modern facilities including Wifi, dining, LCDs, phone charging and others. All services will be free of cost,” he added.
The official said 46 new coaches would comprise three rakes—one will move from Islamabad, another from Karachi and the third would be stationed at Lahore as a spare one.
It merits mentioning that the 46 high-speed modern coaches were received as CBUs from China on Nov 27 last year, paving the way for provision of state-of-the-art rail travel facilities to the masses.
Arrangements have also been made to start manufacturing of 184 similar coaches (passenger, luggage and brake vans) under the technology-transfer component of the 230 coaches’ purchase contract. Since the test run of all 46 coaches was recently completed, the railways planned to use them in various express trains on the main line.
“Modern train coaches can run at the speed of 160km per hour,” the official said, adding that the federal government had, in November 2021, inked an agreement with the China Railway Construction Corporation Tangshan Locomotive and Rolling Stock Company for the supply of 230 high-speed coaches to the Pakistan Railways.
PR Chief Executive Officer (CEO) Salman Sadiq Sheikh has termed the commercial operation of the passenger coaches the beginning of a new era of modern traveling in Pakistan.
“The facilities, which will be made available to the passengers during the journey by the Green Line will include high tea, breakfast and lunch of a five-star hotel, high-quality bedding,
infotainment and WiFi,” the CEO said while speaking to participants in an online open court he held at the PR Headquarters on Tuesday.
He said the PR, after the hard work, succeeded in restoring operation of its freight and passenger trains gradually, which were suspended due to floods. To a question, he said despite an increase in the fares and freight charges following increase in the POL prices, the PR passenger train fares and goods’ train charges were much less compared to the road transport.
ghazi52
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Islamabad-The federal government will spend Rs450 million for hiring of consultant for the preparation of governance-HR structures, development of business and cash flow models and its implementation for upgradation of Karachi to Peshawar Main Line-1 (ML-1) under China-Pakistan Economic Corridor (CPEC).
The Central Development Working Party (CDWP) has approved the China-Pakistan Economic Corridor Support Project (2nd Revised) at the cost of Rs909.285 million – the main component of which is the hiring of consultancy firm and salaries of the employees.
For hiring of consultancy firm—an allocation of Rs450 million, for the payment of salaries and allowances—Rs383.373 million, while the remaining allocation will go to other components of the project, the source said. The Original PC-I of the project was approved by the Central Development Working Party (CDWP), in 2015, at the total cost of Rs252.0 million without FEC. The project envisages establishing a China-Pakistan Economic Corridor (CPEC) Support Secretariat at Ministry of Railways.
The 1st Revised PC-1 of the project was approved by the DDWP, in 2020 at the total cost of Rs910.347 million with FEC of Rs198.0 million. Now the CDWP once again revised the PC-I at the cost of Rs909.285 million.
According the source, the main reason for the revision of PC-1 was hiring of consultants for the preparation of Governance and HR Structures and Development of Business and Cash Flow Models for upgrading ML-1 and their implementation. Revision of pay packages according to new Project Pay Scales (PPS) issued by the Finance Division and rationalisation of human resource as per requirement of the project.
The 2nd Revised Project envisages establishing Project Management Unit (PMU) at the Ministry of Railways and a Project Implementation Unit (PIU) in Lahore, for efficient and effective implementation of the CPEC activities on ML-1 of Pakistan Railways. These activities primarily comprise supervision and monitoring of the project activities like preliminary design, cost estimation, preparation of PC-1, monitoring and processing of tenders for EPC contract(s), and monitoring and liaison during the execution of the project, and for this purpose, a specific provision was made in the PC-1 for hiring of human resource.
Main objective of the project is to establish/strengthen Project Management Unit (PMU) in the Ministry of Railways, Islamabad and Project Implementation Unit (PIU) at Pakistan Railways, Lahore for overall coordination and implementation of China-Pakistan Economic Corridor projects/activities.
The project will facilitate, coordinate, monitor and evaluate the programme and projects related to ML-I; provide a much-needed platform for multi-sector coordination and a consultative, ‘informed’ approach to trade and transport reforms and policy formulation; enhance capacity and provide policy and governance advice to support GoP’s transport and energy infrastructure modernisation agenda in the context of regional connectivity.
Moreover, it will enable Pakistan Railways to use innovative modes of implementing and financing projects and tap modern sources of financing; provide secretarial services for procurement of sector specialists; supervise preparation and implementation of governance/managerial reforms to get the desired benefits of upgraded ML-1; hiring services of advisory/consultancy firms/individual consultant/consultants for preparation and scrutiny of bidding documents/RFPs, designing/survey, evaluation of tenders/RFPs and for third party appraisal/validation of feasibilities, design/survey, project estimates, other documents and to assist PIU in any matter related to project, etc.
The technical section of the Planning Commission asked the sponsor of the project to clarify that an amount of Rs239.5 million has been utilised till June 2022 by the sponsors since the inception of the project in 2015. This infers that in the period of 6.5 years i.e. Jan 2016 to Jun 2022 only Rs239.5 have been utilised which is 26.32 percent of the 1st revised approved cost. It was also asked that sponsors may inform about the performance of the Project Management Unit/PIU till now as justification for revision of the project.
The cost of hiring of consultancy services provided as Rs450.0 million needs to be rationalised and it should be based on actual– since the consultants have already been hired by MoR/PIU.
Federal govt to spend Rs450 million for hiring consultant for ML-1 project under CPEC
March 6, 2023
Islamabad-The federal government will spend Rs450 million for hiring of consultant for the preparation of governance-HR structures, development of business and cash flow models and its implementation for upgradation of Karachi to Peshawar Main Line-1 (ML-1) under China-Pakistan Economic Corridor (CPEC).
The Central Development Working Party (CDWP) has approved the China-Pakistan Economic Corridor Support Project (2nd Revised) at the cost of Rs909.285 million – the main component of which is the hiring of consultancy firm and salaries of the employees.
For hiring of consultancy firm—an allocation of Rs450 million, for the payment of salaries and allowances—Rs383.373 million, while the remaining allocation will go to other components of the project, the source said. The Original PC-I of the project was approved by the Central Development Working Party (CDWP), in 2015, at the total cost of Rs252.0 million without FEC. The project envisages establishing a China-Pakistan Economic Corridor (CPEC) Support Secretariat at Ministry of Railways.
The 1st Revised PC-1 of the project was approved by the DDWP, in 2020 at the total cost of Rs910.347 million with FEC of Rs198.0 million. Now the CDWP once again revised the PC-I at the cost of Rs909.285 million.
According the source, the main reason for the revision of PC-1 was hiring of consultants for the preparation of Governance and HR Structures and Development of Business and Cash Flow Models for upgrading ML-1 and their implementation. Revision of pay packages according to new Project Pay Scales (PPS) issued by the Finance Division and rationalisation of human resource as per requirement of the project.
The 2nd Revised Project envisages establishing Project Management Unit (PMU) at the Ministry of Railways and a Project Implementation Unit (PIU) in Lahore, for efficient and effective implementation of the CPEC activities on ML-1 of Pakistan Railways. These activities primarily comprise supervision and monitoring of the project activities like preliminary design, cost estimation, preparation of PC-1, monitoring and processing of tenders for EPC contract(s), and monitoring and liaison during the execution of the project, and for this purpose, a specific provision was made in the PC-1 for hiring of human resource.
Main objective of the project is to establish/strengthen Project Management Unit (PMU) in the Ministry of Railways, Islamabad and Project Implementation Unit (PIU) at Pakistan Railways, Lahore for overall coordination and implementation of China-Pakistan Economic Corridor projects/activities.
The project will facilitate, coordinate, monitor and evaluate the programme and projects related to ML-I; provide a much-needed platform for multi-sector coordination and a consultative, ‘informed’ approach to trade and transport reforms and policy formulation; enhance capacity and provide policy and governance advice to support GoP’s transport and energy infrastructure modernisation agenda in the context of regional connectivity.
Moreover, it will enable Pakistan Railways to use innovative modes of implementing and financing projects and tap modern sources of financing; provide secretarial services for procurement of sector specialists; supervise preparation and implementation of governance/managerial reforms to get the desired benefits of upgraded ML-1; hiring services of advisory/consultancy firms/individual consultant/consultants for preparation and scrutiny of bidding documents/RFPs, designing/survey, evaluation of tenders/RFPs and for third party appraisal/validation of feasibilities, design/survey, project estimates, other documents and to assist PIU in any matter related to project, etc.
The technical section of the Planning Commission asked the sponsor of the project to clarify that an amount of Rs239.5 million has been utilised till June 2022 by the sponsors since the inception of the project in 2015. This infers that in the period of 6.5 years i.e. Jan 2016 to Jun 2022 only Rs239.5 have been utilised which is 26.32 percent of the 1st revised approved cost. It was also asked that sponsors may inform about the performance of the Project Management Unit/PIU till now as justification for revision of the project.
The cost of hiring of consultancy services provided as Rs450.0 million needs to be rationalised and it should be based on actual– since the consultants have already been hired by MoR/PIU.
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