$1.6bn Chinese soft loan for elevated Monorail in Lahore

[SHAMK9]

LAHORE: China has agreed to give $1.6 billion loan to Pakistan under Preferential Buyers’ Credit (PBC) scheme for launching metro train project in Lahore.

Dawn has learnt that the Chinese prime minister in a recent meeting with Punjab Chief Minister Shahbaz Sharif in China has committed to funding the project under the PBC scheme.

The PBC is a Chinese Government Concessional Loan that refers to the medium and long-term, low interest rate credit extended by the China Eximbank and designed to fund manufacturing projects on infrastructure construction and social welfare in the borrowing country, which can generate promising economic returns or good social benefits.

Officials say since the Chinese premier has committed to collaborating with Pakistan financially in this regard, Shahbaz Sharif has given the go-ahead to its government to launch the project in November this year.

“The commitment made by the Chinese premier is not a small thing, as we will surely be able to launch the project with sufficient funds (Rs160bn approximately) in Lahore,” a senior official of the Lahore Development Authority (LDA) told Dawn on Monday.

The official, who accompanied the chief minister during his recent visit to China, said the project would be launched from Thokar Niaz Beg to GT Road interchange via Multan Road, MAO College, Jain Mandir and Railway Station. “It will be the project (called as orange line) that will totally be elevated, having 27 kilometre length with 27 elevated train stations like the eight stations of the metro bus.”

The official said since the project feasibility and proposals etc had already been finalised, the government was determined to launch it by year end. Talking about the project’s time frame, the official said the government had set 27-month deadline.

“The time frame will strictly be followed, as the chief minister is very serious about getting the project completed on-time and wants state-of-the-art trains to be operational on the route soon after this,” the official said.

When asked about the land acquisition-related issues before launching the project, the official said according to plan there was no land acquisition so far. He said the decision to construct the elevated 27-km stretch was taken just to avoid such problems leading to affecting business activities of the people.

He said various government departments including LDA had jointly started work to complete procedure for getting funds from China.

 

[Contrarian]

Good news.

Question though - the Title says Monorail and the article says Metro. What is it?

 

[SHAMK9]

Good news.

Question though - the Title says Monorail and the article says Metro. What is it?

Its actually an elevated monorail, I changed the title knowing more about the project. Pakistani media can't even differentiate between monorail and metro.

 

[Nothing]

So what will happen to Metro bus service.. both will complement each other or Bus service will die ?

 

[SHAMK9]

So what will happen to Metro bus service.. both will complement each other or Bus service will die ?

Both run on different lines. Won't effect metro bus. Metro bus will be turned into a monorail system by next decade. I will put up the map of the different lines later.

 

[Edevelop]

I think its Metro Train and Dawn News is a reliable source.

@mods change the title.

 

[livingdead]

yay.. who are lahoris here.. congrats... vote for sharif brothers again... next time..

 

[Edevelop]

It will be the Orange Line

So what will happen to Metro bus service.. both will complement each other or Bus service will die ?

That can be converted into Light Rail. The infrastructure like overhead Stations and large ground stations are already built. Only thing required is tracks and electrification of the system.

 

[itduzz]

Where is electricity to run these mono rails & metro projects?

 

[Edevelop]

Where is electricity to run these mono rails & metro projects?

By the time project will complete, there will be more than enough...

 

[Chak Bamu]

Being from Lahore, I would welcome any investment in Lahore. But the $1.6 Billion question is this: who will foot the bill? Seeing that the Metro Bus project is operating on a subsidy, how will the Metro train project be made financially worth-while? If it is operated as a general subsidy, like Metro Bus, how would our government pay the interest and meet installments? It is fine and dandy for Sharif brothers to inaugurate a mega project two months before elections, and operate it on subsidy, but who will pay for all that?

I was all for Metro Bus. I still am. But I seriously doubt anyone would support a $1.6 Billion investment that needs to be paid back with interest while we clearly see that it is going to be another election show piece project.

Seriously, we need to see investment in Education and Health sectors. All one needs to do is to visit government-run hospitals to find the neglect of this administration. No PML-N partisan can put up any sort of defense here. Punjab government's record is dismal here. I started seeing this right after the fiasco at Punjab Institute of Cardiology. Senior doctors were made scape-goats for something they had very little control. Punjab government went after them with vengeance. It seems like someone in Punjab government seriously hates doctors.

It would be far better to spend $100 Million to create a 'Health city' project that provides state of the art medical facilities in Lahore. Instead of going to to China, or India, patients could get medical procedures like liver transplants etc... with (now nonexistent) quality post-operative care. To me that would be a worthwhile investment with serious dividends. I would much rather have people visit Lahore for cost effective quality services (Health, education, financial services, retirement) than have hectic proliferation of Transport mega projects.

But despite all that. I would like to congratulate fellow-Lahoris on something that is a step forward in (lopsided) development.

 

[Contrarian]

Its actually an elevated monorail, I changed the title knowing more about the project. Pakistani media can't even differentiate between monorail and metro.

Interesting.
I agree with Punjab Govt's decision.

Monorail is better for Lahore than Metro right now because of precarious finances. Metro has a higher capacity but costs multiple times more per km as well.

Monorail seems to be the right balance. The only downside in Monorail is its capacity. It does not have the capacity that a Metro system does. And once built, it can not be changed to Metro at light costs since the Right Of Way gets occupied by the Monorail.

Being from Lahore, I would welcome any investment in Lahore. But the $1.6 Billion question is this: who will foot the bill? Seeing that the Metro Bus project is operating on a subsidy, how will the Metro train project be made financially worth-while? If it is operated as a general subsidy, like Metro Bus, how would our government pay the interest and meet installments? It is fine and dandy for Sharif brothers to inaugurate a mega project two months before elections, and operate it on subsidy, but who will pay for all that?

I was all for Metro Bus. I still am. But I seriously doubt anyone would support a $1.6 Billion investment that needs to be paid back with interest while we clearly see that it is going to be another election show piece project.

Seriously, we need to see investment in Education and Health sectors. All one needs to do is to visit government-run hospitals to find the neglect of this administration. No PML-N partisan can put up any sort of defense here. Punjab government's record is dismal here. I started seeing this right after the fiasco at Punjab Institute of Cardiology. Senior doctors were made scape-goats for something they had very little control. Punjab government went after them with vengeance. It seems like someone in Punjab government seriously hates doctors.

It would be far better to spend $100 Million to create a 'Health city' project that provides state of the art medical facilities in Lahore. Instead of going to to China, or India, patients could get medical procedures like liver transplants etc... with (now nonexistent) quality post-operative care. To me that would be a worthwhile investment with serious dividends. I would much rather have people visit Lahore for cost effective quality services (Health, education, financial services, retirement) than have hectic proliferation of Transport mega projects.

But despite all that. I would like to congratulate fellow-Lahoris on something that is a step forward in (lopsided) development.

Investment in efficient transportation carries a lot of benefits which are not quantifiable easily.
There are social benefits.
Then there are industrial and economic benefits. Better transportation leads to better productivity, attractiveness of a city which further leads to more investment in the city both by domestic sources and foreign sources.

Basically It starts a virtuous cycle. Lahore will also get all these benefits.

As far as payment is concerned - almost every major metro system in the world in developing countries has been financed by developmental loans - which generally have a 1% or 2% interest and a 20-30 year repayement period. Basically they are almost grants.

This includes the Delhi Metro, Jaipur Metro, Chennai Metro.

The capital expenditure in creation of such mammoth systems are usually not counted. Once the Metro/Monorail starts functioning, all that is required is that the system make an 'operational profit'.

The current Lahore Metro Bus project does not make operational profit. However the Monorail system may achieve that far more easily on account of the different nature of these systems.

And if the Lahore Monorail system does make operational profit, consider it a job well done by the respective people involved.

 

[Chak Bamu]

@Contrarian

Thanks for your reply, but what you have said was already in my mind. I have wondered about the business model of the whole thing and I doubt if it would turn a profit, given that Metro Bus is already a subsidized project as far as its operation is concerned.

It could be that during construction of the first phase of the planned system within 27 months (36 months, 3 years from now) the subsidy would be lifted, adjusting public expectations and allowing the government to pass on the actual costs for this project to be self-sustaining and allow for further investment in Lahore's Metro system.

Another aspect would be expansion of Lahore's metropolitan area. Already a sizeable chunk of population lives outside of the planned system's reach. Notice the South side of the project which is served by three lines. The Southern terminus of all three lines are well inside developed area. Given that the Southern side of Lahore is projected to grow faster than any other, the three Metro lines would already be inadequate by the time they are completed.

(Hey if anyone wishes to reap major profit from real estate investment, they should buy plots South of 'Defence Road' - the one that runs between Mohlanwal on Multan Rd to Kahna on Ferozepur Rd. I am already in buying mode - going to see a site today.)

 

[Leader]

so now we are going to be indebted to China as well..

 

[Rank]

Getting loan from China FOR JUST LAHORE and collecting Money for return loan from ALL OVER PAKISTAN... kamaal hey is ** ganja hakoomat ki