Railways. PHOTO: REUTERS
LAHORE: Although the Pakistan Railways is in negotiations with the Asian Development Bank (ADB) for a long-term concessionary loan, the deal will only be reached if it suits the organisation, said Federal Minister for Railways Khawaja Saad Rafique.
Speaking at a ceremony at the Lahore railway station held to welcome the arrival of the special Azadi Train on Wednesday, Rafique said “we are currently in talks for a loan with the ADB, but we will only accept it if it is suitable for the railways.”
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The ongoing negotiations are separate from the China-Pakistan Economic Corridor (CPEC) investments made by China to upgrade the railway infrastructure. The bank, according to the railway minister, has agreed to grant the loan, but negotiations are under way on the interest rate, which the railways said would be suitable if it did not exceed 2%.
Once the loan is sanctioned, the Pakistan Railways will invite applications from private companies for launching 11 new rail lines, which would be laid on the build-operate-transfer model.
Rafique was of the view that CPEC investments would bring a revolutionary change in the Pakistan Railways and its track speed would accelerate up to a maximum of 180 km per hour on Main Line-1.
“Past governments have looted this institution badly, which has pushed this strategically important asset to its lows,” said the minister, adding that in developed countries people preferred to travel via rail network, but in Pakistan a lack of vision and corruption had destroyed the railways.
“We have brought positive changes in the railway infrastructure in the past four years and we will make all-out efforts in our remaining tenure,” he added.
Among recent agreements under CPEC, the Pakistan Railways has signed a framework deal with the Chinese Ministry of Transport to upgrade ML-1, covering the Karachi-Peshawar track.
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Total cost of this project is estimated at around $10 billion and it includes doubling the entire track for faster transportation of passengers as well as goods via trains.
The existing speed of trains on ML-1 stands between 60 km per hour and 120 km per hour, which, after upgrade, will increase to 120-160 km per hour.
Other than the upgrade, the project includes renovation of the Karachi Cantonment and Lahore railway stations as per international standards, construction of walls in populous areas along the track, fixing the issues of un-manned level crossings, upgrading of the rolling stock including locomotives as well as freight coaches, construction of the Havelian terminal and upgrading of the Walton Academy.
Published in The Express Tribune, August 17th, 2017.
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