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China Pakistan Economic Corridor (CPEC) | Railway

HE Yao Jing,the Chinese Ambassador visited CPEC Authority & conveyed his Govt’s pleasure on ECNEC approval of ML-1. Seperarely Mr. Sun Yangjun DG China Railway Gp visited & felicitated Pakistan on ML-1 approval.Assured to use max Local Labour & materials #CPEC #CPECMakingProgress

 
The contractor meeting for ML - 1


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Project Title:

Rehabilitation & Up-gradation of Karachi-Lahore Peshawar (ML-1) Railway Track (1,872 kms)


Scope:

  • Doubling of entire track from Karachi to Peshawar
  • Speed of passenger trains to be raise from 65/110km/h to 160 km/h
  • Freight trains to operate at 120 km/h
  • Computer based signaling and control system
  • Grade separation to ensure safety of train operations


Responsibility:

  • Proposing Agency: Ministry of Railways
  • Implementing Agency: Pakistan Railways
  • Supervising Agency: Ministry of Communications, Government of Pakistan


Location Karachi to Peshawar via Hyderabad, Nawabshah, Rohri, RahimyarKhan, Bahawalpur, Khanewal, Sahiwal, Lahore, Gujrawala, Rwalpindi, Peshwar

Estimated Cost (US $ Million) 6808

Financing Work will be carried out by financing possibly through Chinese Government Concessional Loan (GCL). Work will be awarded through open bidding as per PPRA rules through EPC contract

Project Progress Update
  • Feasibility completed
  • ML-1 Project declared ‘Strategic’ by 6th JCC in Beijing
  • Framework Agreement on ML-1 signed on 15th May 2017 during PM Visit to China
  • Commercial Contract for Preliminary Design signed on 15th May, 2017
  • Project will be completed in 3 phases
  • PC-1 has been submited to MoPD&SI in October 2019
  • A financing committee has been notified under the Chairmanship of Deputy Chairman, Planning Commission to laision with Chinese to finalize the concessional financing agreement
  • PC-1 of ML-1 project approved by CDWP on 6th June 2020
  • ECNEC approved the project on 5th August 2020
 
China to provide 90% funding for $6.8 billion Pakistani Railway project ML-1

- “About 90% of financing for the project will be provided by the Chinese government [through the government concessional loan] while the remaining amount will be shared by us,” the railways minister informed.
 
Expected in January or February 2021, the construction activities will start on this historic railway project.
 
Pakistan Railways has 3 Main Lines ML-1, ML-2, ML-3. Upgradation of these 3 Main Lines are under CPEC but divided in phases of early upgradation mid term projects

In first phase upgradation and doubling of 1872 kilometres long ML-1 from Karachi to Peshawar, including 55-km Taxila- Havelian section is being done. Also establishment of Havelian Dry Port.

The ML-2 is 1254 kilometre long alternate railway line from Kotri to Attock via Dadu- Larkana , Jacobabad , Dera Ghazi Khan, Bhakkar , Kundian, they added.
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The sources clarified that although upgradation of ML-2 was part of the CPEC, it was also included in midterm.

The existing railway line from Rohri to Kohi-Taftan via Quetta and Sibi Spezand section (1022 km) and rail link from Quetta to Kotla Jam (538 km) were called ML-3, which will be used for the exploitation of full capacity of Gwadar Port and anticipated traffic from China after CPEC became operational.

The sources further informed that the feasibility study of the project had been approved by the Planning Commission
 
China seeks additional guarantees for $6b new loan

China has sought additional guarantees before sanctioning $6 billion loan for Main Line-1 (ML-1) project due to weakening financial position of Pakistan and also proposed a mix of commercial and concessional loan against Islamabad’s desire to secure the cheapest lending.

The issue of additional guarantees was raised during the third joint ML-1 financing committee meeting, held ten days ago, official documents said.

However, a senior Pakistani official involved in negotiations said that China did raise the additional guarantees issue during meeting but it did not make it part of the draft of the minutes shared with Pakistan.

The ML-1 project includes dualisation and upgrading of the 1,872km railway track from Peshawar to Karachi and is a major milestone for the second phase of China-Pakistan Economic Corridor (CPEC).

The purpose of raising the additional guarantees issue was getting more clarity after Pakistan availed G-20 countries debt relief initiative, he added. The draft minutes have not yet been signed by both the countries.

The third round of financial negotiations gave further clarity on the Chinese position on $6 billion lending for the $6.8 billion strategically important ML-1 project of Pakistan Railways, sources in the Ministry of Economic Affairs said.

The Chinese authorities asked for additional guarantee mechanism after Islamabad sought debt relief from G-20 countries, which was only meant for poorest nations of the world.
The G-2- nations have also imposed conditions that the poor countries would not secure expensive commercial loans, except those allowed under the IMF-WB framework.
The Chinese authorities have proposed that “keeping in view the financial situation in Pakistan so also the conditions laid down by the G-20 re
 
ML-1 to speed Pakistani exports, increase revenue: PM


Prime Minister (PM) Imran Khan has said that the CPEC’s Main Line -1 (ML-1) project is set to shape road networks amongst sea ports of Pakistan and expedite exports by reducing at time of delivery, while the speedy delivery of exports to international markets will translate into revenue generation for Pakistan.

Chairing the project’s project survey session in the federal capital on Monday, the premier expressed satisfaction on the progress made so far.

The PM was briefed at length about the project by the Ministry of Railways and CPEC Authority chairman among other authorities concerned while Federal Railways Minister Azam Khan Swati expanded on the integration plan of ML-1.

The premier said that the ML-1 project will lay the foundation of an industry that will guarantee prosperity for Pakistan and employments, adding that it is by far the costliest project of CPEC.
 
Pakistan China agree on early launching of ML1 under CPEC during a meeting between Chinese Ambassador Nong Rong and Minister for Railways Azam Khan Swati.

As the biggest project in Pak history, the ML-1 project will be carried out in the four provinces from Peshawar to Karachi.




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ML1 CPEC Railway

Train will run at a speed of 160 km per hour from Peshawar to Karachi, ML One plan
Pakistan Railway ML One project will be launched loudly, Azam Sawati.

Prime Minister of Railway Sawati has informed the National Assembly that Pakistan will fence the ML One project from both sides under the Railway CPEC and change the level crossing to overhead bridge or under passage to protect human lives and avoid accidents. It will go. The train will move towards its destination at a speed of 160 km per hour from the track from Peshawar to Karachi.


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The federal government has earmarked Rs23 billion for 17 projects of China Pakistan Economic Corridor CPEC under the Public Sector Development Programme (PSDP) 2021-22.

the government allocated Rs 6 billion for the “Up-gradation of Pakistan Railways existing Main Line-1 (ML-1) and Establishment of Dry port near Havelian (2018-22) Phase-1”.

The government also earmarked Rs500 million for the project “Preliminary Design/Drawings for Up-gradation/Rehabilitation of Mainline (ML-I) and Establishment of Dry port Near #Havelian under the China Pakistan Economic Corridor (CPEC) and Hiring of Design/Drawing Vetting Consultants”


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