Meeting called for early completion of the bus service that will be run by Daewoo, on the lines of ones launched in Lahore and Islamabad. PHOTO: EXPRESS
KARACHI: Construction conglomerate Bahria Town will give Rs42 billion loan to Sindh government for Karachi Metro Bus project.
This was decided in a high level meeting, where Asif Ali Zardari, Bahria Town Chairman Malik Riaz, Sindh Chief Minister Qaim Ali Shah and members of the provincial cabinet unanimously approved the Karachi Metro Bus project.
According to a press release, the meeting called for early completion of the bus service that will be run by Daewoo, on the lines of ones launched in Lahore and Islamabad.
The 54-kilometre long two routes of the bus service connect Super Highway on the outskirts of the city with Merewether Tower at the start of MA Jinnah Road and II Chundrigar Road in the business and financial hub of Karachi and Super Highway with airport via Malir Cantt.
The estimated cost of the grand infrastructure project is around Rs70 billion. Bahria Town has agreed to give Rs42 billion to Sindh government on a 154-year loan to complete the project.
Sindh government will seek Rs20 billion from the federal government and invest Rs8 billion from its own resources.
The provincial government has completed the feasibility study, acquired environmental impact assessment report from the Environmental Protection Agency and finalised the design of the project in the last three months, the press release said.
The Sindh government has also signed a memorandum of understanding with the Daewoo bus company which will run its hybrid buses on the route along with all the operational matters to ensure high quality service, press release said.
Published in The Express Tribune, February 6th, 2015.
COMMENTS (29)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
How can a project in Pakistan cost around 412 million dolllar. Anyone even have an idea of this amount? How can someone even accumulate such amount considering the economic situation of Pakistan. Wages are extremely low yet we are seeing such massive amount of money being used. Everything here is so corrupted. I don't thing there is any fix for it. God bless Pakistan
One can learn from failures of india. Bus rapid transport service BRTS is a failure. Designed to attract ac car owners, it has not reduced any traffic congestion. On the other hand usage of auto has also multiplied.
@Sidster:
What you have said makes no sense. In 154 years the value of the rupee will be alot lower than what it is right now look at the current and previous rates of inflation. Giving away so much money at an interest rate of 1% is literally giving money away. And I dont know why you have taken dollars instead of rupees. This deal would probably come with some strings attached but im afraid you havent quite solved it.
All people including many Media Personalities are bashing Malik Riaz all the time?. Why?. Because first of all he is self-made who came from poverty to run a Multi-Billion Conglomerate. Secondly he don't scare or threaten anyone with any tactics. Why DHA is spared but Bahria town is problem?. Why all other Billionaires are holy cows but Malik Riaz is a Problem?
Karachi have tons of Billionaires and they can easily arrange billions in day. But why they are not interested?. Bahria dastar-khwan alone give food to more than 40,000 poor everyday ?. Any other rich man can do that in our country? Why no one is bashing them?. Why Our media is at all out war with Malik Riaz but leave every other billionaire of Pakistan alone. ? He is the only billionaire who is interested in investing at such a large scale. So keep on bashing him all the time. But in my view whatever he is earning he is giving back to the community as well.
Sindh govt can buy helicopters for chief minister but the buses for the people
It all started when Malik Riaz was just a contractor of Army..!
Anyone remember Samad Dadabhoy of the 1980s ?
Guess whose money this is ? If it sat in the Swiss Bank it would earn max 1%.......now lending it to Sindh for a project that is not needed at this time.....he will set his own interest rate....and Bahria will get a mammoth building project....life is good for our politicians.
I'd like to know how much would it cost to revive circular railway in Karachi. Complete circuit.
My vote for Malik Raiz to be the Chairman of the Senate.....!! Anybodyagree?
Maybe Bahria should run the service itself instead of giving it to a corrupt government.
This is the calculation cost of this loan to Sindh Government will be on a 1 percent interest:
A = $ 106,680,000,000.00
Equation: A = P(1 + rt)
Calculation: First, converting R percent to r a decimal r = R/100 = 1%/100 = 0.01 per year, then, solving our equation
A = 42000000000(1 + (0.01 × 154)) = 106680000000 A = $ 106,680,000,000.00
The total amount accrued, principal plus interest, from simple interest on a principal of $ 42,000,000,000.00
Congratulations to the people of Sindh for let idiots run a Province. at a rate of 1% per year for 154 years is $ 106,680,000,000.00.
154 year loan! Is that a typo?
Shameful for a state and its handlers that a person has been deemed to be institutionalized and country still in state of infancy at all fronts except army
One day Malik Riaz will buy Pakistan :)
Another move to convert black (Swiss Money) into white through puppet Malik Riaz. This is absolutely wrong number.
42 billion to be given to Wadera Corruption Party's Sinned Government. Here go many more billions to the greedy thug. By the way these corrupt wadera thugs have already destroyed the Green Buses with their corruption that were arranged during Mustafa Kamal's period
Bahria town can make it happen, Metro bus and the Karachi circular railway can solve the transport problem to a large extent.
This is the biggest joke I have heard in recent times. Bahria Town giving loan to a provincial government. I am sure there would be a lot of strings attached to this generous offer by Bahria Town. However, I would like to point out another grey area of Bahria Town affairs. My father is one of the many suppliers that give constrictions material to Bahria Town. The payment schedule by Bahria Town is slower than than the award of pension to a government employee by the government. Bahira Town owes million of rupees to businessmen of City Saddar road, Rawalpindi. The supplied the goods and waiting like forever for the bills to get cleared. One one side, Bahria Town is giving loans to a provincial government and on the other side many people are waiting for the payment of bills by Bahria Town.
Metro bussssss..... go for subway tubes and underground trains.... its not 18th century
So now the Sindh government becomes a servant of Malik Riaz.
The government being bought officially! Sad.
For information of all, the loan is actually from the Swiss-Bank money redirected by Bahria Town to Sindh Government. It's all in the Family.
Looks like the Metro Bus Service will pass through posh areas. Why isn't Karachi District West (Orangi, SITE) not included in the route? Because the conditions of the roads are worst than dirt track in the country side, and the area has been neglected for years, Metrovile SITE, gets water after 55 days.
@Troubled.. Are you joking? Bahria Town is not a philanthropic organization. Noting is free
What will be Mr. Zardari's share, since he was also present in the Signing ceremony, as per article. He can finance whole 70Billions, after being "King" of Pakistan and king of corruption for 5 years. He should bring back some of that loot from Dubai to make some worthwhile project such as this become a reality. But good things are only a dream.
It's about time the government invested in public transport. Daewoo's service in Lahore/rawalpindi/islamabad is very good. As long as a private company like Daewoo runs it it will be good.
Loan? And the interest rate is? Seems bahria has bought the Sind government.