Effects of OLMT: Rs21b needed to pay relocation compensation

Govt hopes to complete projects before polls, but contractors say it is an uphill task

LAHORE: After getting a go ahead from the Supreme Court of Pakistan (SCP), city developers have expedited development work on the Lahore Orange Line Metro Train (OLMT) project. They have also raised a demand of over Rs21 billion to clear civil structure and outstanding land acquisition payments.

Although the government has already paid relocation compensation for the land acquired, there are still a couple of families left. A member of the OLMT steering Committee indicated there was a dispute among a few claimant families so their payments were on hold. Now, as the project has got the green signal from the apex court and work is starting at all remaining sites, the government is trying to clear all remaining land acquisition payments.

City developers have forwarded a summary for provision of resources to the Punjab Planning and Development Department. They have demanded Rs8.2 billion for OLMT package-1 (from Dera Gujran to Chaburji), Rs9.3 billion for package-2 (from Chaburji to Ali Town), Rs 1.3 billion for package-3 (depot) and Rs2.8 billion for package-4 (stabling yard).



The government is yet to announce a fresh deadline for completion of the country’s first metro train project, but contractors say the government wants to complete the initiative before the 2018 General Election. Earlier, the Punjab government completed the Lahore Metro Bus project before the 2013 General Election in record time. In fact, the ruling party built its election campaign on the basis of this accomplishment.

This time around, the Punjab government has aligned the OLMT project with the 2018 General Elections, but it will be difficult to complete construction on time as more than 22 months were spent in litigation.

Project contractors pointed out that they increased the labour force to further expedite development works of the metro train project, but it was impossible to complete the initiative before the target set by the provincial government. They said that around 80% of the civil works had already been completed, but several time consuming jobs, including the construction of the three-storey underground central station, electrical and mechanical works by Chinese engineers and laying of rail tracks, were still pending.

Although this option is not under consideration yet, a project manager said that if Chinese contractors, CR-NORINCO, agreed, the government could operate the metro train partially between Dera Gujran and Chaburjai as most works in the area had been completed. Remaining development works will be complete in a couple of months after which Chinese engineers will start laying rails and completing electrical and mechanical works.

The 27-kilometer Orange Line Metro Train Project is being funded through a $1.65 billion soft loan from China’s Exim Banks. Project documents indicate around $1 billion would be directly transferred to the Chinese contractors, CR-NORINCO, for procurement of the rolling stock, while the remaining amount would be transferred to the government for construction of track and provision of allied infrastructure.



The project is part of the city metro network and when completed, it will connect Raiwind, Multan Road, Mcleod Road, Lahore Junction Railway Station and the Grand Trunk Road. It will be the first line of the Lahore Metro, which is the country’s first mass rapid transit train system.

Published in The Express Tribune, December 15^th, 2017.