Govt may build high-rises around OLMT trade
OLMT Package I contractor says it will start laying asphalt layer on roads along a nine-kilometre stretch of the track from Tuesday. PHOTO: ABID NAWAZ/EXPRESS
To cover the exorbitantly high operations and maintenance (O&M) cost and increase the viability of the Lahore Orange Line Metro Train (OLMT), the Punjab government is considering building high-rise buildings along the metro train and metro bus in the city, The Express Tribune has learnt on Tuesday.
A copy of the O&M contract highlights that the government had to pay Rs432.66 million monthly to foreign and local O&M contractors to keep metro train plying.
In addition to this, the government had to pay around Rs460 million on account of subsidy and millions of dollars for repayment of $1.65 billion loans and mark-up acquired for construction of this project.
The O&M contract showed that the government will pay Rs313.84 million on account of remuneration, including over Rs165 million for salaries to the foreign staff of around 300 persons and over Rs148 million for salaries of local staff of around 800 persons.
Read OLMT losses keep accumulating in Punjab
It highlighted that non-salary expenditure stands at Rs118.82 million, including consumables Rs21.29 million, security of non-public areas Rs9.30 million and insurance Rs1.19 million.
An estimate suggested the government had to pay around Rs41.47 billion to O&M contractors till the completion of their contractual term of eight years.
A senior official of the Punjab Mass Transit Authority (PMTA) disclosed the estimated reserve price for the O&M contract was around Rs360 million-Rs370 million, but the authority had to accept bids because no local vendor had the expertise to run such a complex train operation.
“We are paying this price to develop local expertise and believe that in eight years of the contract term, some local vendors will develop expertise,” he added.
Lahore Development Authority (LDA) had already given a preliminary presentation to the Punjab government about the proposal of building a high-rise and a detailed presentation was expected by month-end.
Published in The Express Tribune, June 24th, 2021.