Mass transit plans: Sindh CM wants Karachi Circular Railways to be included in CPEC

The CM was presiding over a meeting on KCR at the New Secretariat on Tuesday


Our Correspondent November 29, 2016
Iqbal says business conference will boost economy, bridge gap between academia and industry. PHOTO: AFP

KARACHI: Chief Minister (CM) Murad Ali Shah has decided to approach the prime minister to include Karachi Circular Railways (KCR) in the China-Pakistan Economic Corridor project.

The CM was presiding over a meeting on KCR at the New Secretariat on Tuesday. The meeting was attended by additional development chief secretary Muhammad Waseem, principal secretary Naveed Kamran Baloch, transport secretary Taha Farooqui, energy secretary Agha Wasif, Sindh Engro mining company chairperson, finance secretary Hassan Naqvi and others.

Transport secretary Farooqui said that Japan International Cooperation Agency (JICA) is considering providing soft term loan on a mark-up of 0.1%, repayable in 40 years, including a 10-year grace period. The Karachi Urban Transport Corporation (KUTC) has been formed for implementation of the project. He added that the cost of land acquisition, compensation to project affected persons, General Sales Tax, import duties and administrative cost will be borne by the stakeholders of KUTC, such as Ministry of Railways, Sindh government and Karachi Metropolitan Corporation (KMC). Farooqui added that KUTC has already been registered with Security Exchange Commission of Pakistan.

The CM was told that the stakeholders with the equity shares are Ministry of Railways with 60% shares, Sindh government with 25% shares and KMC with 15% shares. JICA had carried out a study on Special Assistance for Project Formulation during November, 2008, and February, 2009, and gave its report in May, 2009. On the basis of the report, PC-I was prepared and approved by the Planning Commission of Pakistan in Executive Committee of the National Economic Council (ECNEC) meeting that was held on September 3, 2009. Environmental impact assessment of the project was carried out and approved by the Environmental Protection Agency on July 4, 2009. Resettlement action plan (RAP) of the project affectees was commenced in May 2009 and completed in 2011.

The CM was apprised that K-Electric has declared KUTC and KCR as a strategic customer. A memorandum of understanding was signed in October, 2013, with the Karachi Electric Supply Company, which is now K-Electric, for uninterrupted power supply for KCR in. The Karachi Port Trust had confirmed in February, 2011, to hand over 0.85 acres land to KUTC on commencement of KCR project.

The RAP study was approved by donor agency on July 28, 2011. The revised cost of the project has been approved at $2.6 billion by ECNEC in 2012. Space and Upper Atmosphere Research Commission has finalised a satellite imagery of KCR route alignment and preliminary alignment plans finalised in consultation with JICA experts and relevant railway officials.

The CM directed Farooqui to look for other donors to start the project. “This is unacceptable that the fate of the project is hanging in balance since 2008,” he said. The CM asked his team to talk to local financial institutions and international agencies, adding that this cannot be delayed any further.

The CM said that he will take up these issues with the prime minister, to include this important project of KCR in the CPEC. “I am writing a letter to the prime minister,” he said.

Published in The Express Tribune, November 30th, 2016.

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