Rs36b approval for ML-I delayed
ML-I project has been lingering for the past almost two years and could not win the nod of the authorities. Photo: File
Pakistan on Thursday again postponed approval of Rs36 billion project that had been designed to provide security to the Chinese nationals who would be engaged for the construction of multibillion-dollar Mainline-I (ML-I) project.
The project has been lingering for the past almost two years and could not win the nod of the authorities after the previous government excluded the security component from the $6.8 billion ML-I project of China-Pakistan Economic Corridor (CPEC).
The Rs36 billion worth of security provision for the up-gradation of Pakistan Railways’ ML-I project was presented to the Central Development Working Party (CDWP) for endorsement.
However, the CDWP referred the scheme back to the Pakistan Railways with the direction to first address objections to the scheme and also take China into confidence.
The enemy forces’ attacks on CPEC – the flagship project of China’s Belt and Road Initiative – have increased in recent months, which led to the killings of both Chinese and Pakistani nationals. This has created resentment in the Chinese government.
However, despite the gravity of the situation, the bureaucracy is still treating the matter as business as usual.
Headed by Planning Commission Deputy Chairman Dr Jehanzeb Khan, the CDWP that held meetings almost on a weekly basis did not take the security project on priority.
The main purpose of the Rs36 billion project is to provide foolproof security for the construction camps and the Chinese nationals, who will be deployed during the course of construction work for the up-gradation of ML-I project.
The last PTI government had approved the PC-I for up-gradation of ML-I project in August 2020 at a rationalised cost of $6.8 billion. While rationalising the cost of PC-I, the CDWP deleted the cost of providing security, which was equal to 1% of the project cost or nearly $80 million.
However, China has also already objected to the $6.8 billion project cost and is not willing to fund the scheme until the cost is adjusted upwards.
The ML-I project is planned to rehabilitate Pakistan’s Railways network of 1,733 kilometres from Karachi to Peshawar.
China had expressed concern over the deletion of security components from the approved PC-I for the up-gradation of ML-I.
Similarly, Pakistan Army also conveyed its reservations to the Prime Minister’s Office regarding removal of security components, saying there were serious implications of deleting the security costs.
The General Headquarters had said the exclusion of the overall security mechanism due to non-availability of critical security enablers also carries implications for the overall CPEC security.
This would increase pressure on the army’s Special Security Division of the CPEC due to shortage of local and private security guards during construction, according to the GHQ.
Another major concern was that in absence of any structured mechanism, neither the military nor the Pakistan Railways would be ready to bear the security cost.
Due to these reservations, the Prime Minister’s Office in March last year had directed the Ministry of Railways to evaluate its security needs for up-gradation of ML-I project in consultation with stakeholders.
However, the previous government did not take the matter seriously and the project remained unapproved.
According to the proposed PC-I, about 118 administrative camps and 33 barracks will be constructed for provision of security to Chinese workers.
Pakistan and China have not yet agreed on the loan terms for $6 billion that Islamabad is seeking to construct the ML-I project. Due to this delay, the bidding process for any of the three packages has not been initiated and that has also delayed the civil works.
Meanwhile, the CDWP has cleared three development projects worth Rs15.8 billion, while recommending another scheme to the Executive Committee of the National Economic Council (ECNEC) for approval.
The CDWP recommended the Torkham Jalalabad road project at revised cost of Rs10.6 billion linking the Central Asian Republics with Pakistan. This project is aimed to help the government of Afghanistan in its efforts for the reconstruction of roads to link Torkham with Jalalabad.
The forum approved establishment of a 132KV grid station at Bin Qasim Industrial Park in Karachi at a revised cost of Rs3.6 billion.
The objective of the project is to provide uninterrupted power supply at affordable rates to the Special Economic Zone (SEZ) of Bin Qasim Industrial Park BQIP, in order to meet the power requirements of SEZ enterprises.
The forum also cleared the up-gradation of the mechanical system for sewerage and drainage services in WASA.
Published in The Express Tribune, April 29th, 2022.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.