Devil Soul
ELITE MEMBER
- Joined
- Jun 28, 2010
- Messages
- 22,931
- Reaction score
- 45
- Country
- Location
Chinese authorities approve inclusion of 3 Sindh projects in CPEC
Imtiaz Ali — Updated 20 minutes ago
WHATSAPP
8 Comments
Email
Print
Chinese authorities have in principle approved inclusion in the China-Pakistan Economic Corridor (CPEC) of three development projects in Sindh including the Karachi Circular Railways, Keti Bandar and Special Economic Zones, Sindh CM House said Thursday.
The decision was taken in the 6th Pakistan-China Joint Cooperation Committee (JCC) meeting regarding CPEC held in Beijing which Sindh Chief Minister Murad Shah attended along with his provincial cabinet members.
The Pakistani delegation led by Planning and Development Minister Ahsan Iqbal also included chief ministers of Punjab, Balochistan and Khyber Pakhtunkhwa. The vice chairman of National Development and Reforms headed the Chinese delegation.
After a presentation by the Sindh chief minister, the JCC decided to include the projects and asked the Sindh government to present a feasibility report within next three months.
It was expected that the Chinese government would announce financing of $1 billion for the completion of the three projects under the CPEC. The amount was to be spent on the construction of three additional routes related to the western route of the CPEC, according to officials.
Murad's case for KCR
Sindh CM Murad Shah made a case for Karachi Circular Railways at the meeting, saying that the provincial capital is one of the most populated cities in the world, with an estimated population of around 25.1 million people in 2016 ─ a number greater than Tokyo, Guangzhou, Seoul, Delhi, Mumbai, Mexico City, New York, Sao Paulo, Manila and Jakarta.
Karachi's population estimated to touch 34.3m by 2030: Murad Shah
The population of the city will touch 34.3m by 2030, he said. "Therefore, there are ample returns on investment if made in the city."
Why Murad Shah thinks there is a need for KCR:
He said the solution of the problem lies in an effective mass transit system which includes the revival of the KCR, the Bus Rapid Transit System, and the Light Rail Transit.
The KCR was first commissioned in 1964 and remained an effective transportation system until 1984, he said. Due to certain reasons such as increased running time and lack of investment reduced its operational efficiency, he added. As a result, ridership fell and finally caused its closure in 1999.
The KCR project has been approved by the Executive Committee of the National Economic Council (Ecnec), the Sindh CM said.
A feasibility study was carried out along with third-party validation of the study, he said. An Environmental Impact Assessment has also been conducted and a relocation of utility services is not required, he said.
K-Electric has assured uninterrupted power supply for the project, he assured investors, and federal and provincial taxes are exempt on the project.
Integration with BRTS lines has been made and the institutional framework in the shape of the Karachi Urban Transport Company (KUTC) is available, he said.
The Japanese have estimated the cost of the KCR at about $2.6bn and developed the investment structure as 85pc debt financing and 15pc equity financing by the provincial and federal governments, he said.
The Internal Rate of Return is estimated at 13.8pc, he said, and the economic benefits include reduced vehicle operation cost and travel time cost.
He invited investors to contribute in the equity of KCR along with federal government and Sindh government. He added that equity IRR compatible with infrastructure projects currently being developed in Pakistan would be offered to the investors.
Shah sought Chinese cooperation to include the project in the CPEC after Prime Minister Nawaz Sharif approved its inclusion in the initiative and provided a sovereign guarantee.
The JCC decided to include the project and asked the Sindh government to present its feasibility within the next three months, upon which Shah directed the Transport Minister Syed Nasir Shah to expedite work on the feasibility of the projects within the stipulated time.
Imtiaz Ali — Updated 20 minutes ago
8 Comments
Chinese authorities have in principle approved inclusion in the China-Pakistan Economic Corridor (CPEC) of three development projects in Sindh including the Karachi Circular Railways, Keti Bandar and Special Economic Zones, Sindh CM House said Thursday.
The decision was taken in the 6th Pakistan-China Joint Cooperation Committee (JCC) meeting regarding CPEC held in Beijing which Sindh Chief Minister Murad Shah attended along with his provincial cabinet members.
The Pakistani delegation led by Planning and Development Minister Ahsan Iqbal also included chief ministers of Punjab, Balochistan and Khyber Pakhtunkhwa. The vice chairman of National Development and Reforms headed the Chinese delegation.
After a presentation by the Sindh chief minister, the JCC decided to include the projects and asked the Sindh government to present a feasibility report within next three months.
It was expected that the Chinese government would announce financing of $1 billion for the completion of the three projects under the CPEC. The amount was to be spent on the construction of three additional routes related to the western route of the CPEC, according to officials.
Murad's case for KCR
Sindh CM Murad Shah made a case for Karachi Circular Railways at the meeting, saying that the provincial capital is one of the most populated cities in the world, with an estimated population of around 25.1 million people in 2016 ─ a number greater than Tokyo, Guangzhou, Seoul, Delhi, Mumbai, Mexico City, New York, Sao Paulo, Manila and Jakarta.
Karachi's population estimated to touch 34.3m by 2030: Murad Shah
The population of the city will touch 34.3m by 2030, he said. "Therefore, there are ample returns on investment if made in the city."
Why Murad Shah thinks there is a need for KCR:
- Daily ridership on KCR of 700,000 passengers per day
- 3.9m registered vehicles in Karachi
- 24m trips generated daily
- 6,457 buses run 192 routes
- 2,715 contract carriages operating in Karachi
- 85pc buses over two-years-old, inefficient fuel consumption and poor service
- 47.3pc of all vehicles are motorcycles, 36.5pc private vehicles, 4.5pc public transport, 1.7pc contract carriages and 9.9pc para transit
- 42pc of passengers use public transport, 21pc private cars, 19pc motorcycles, 10pc contract carriages and 8pc para-transit
He said the solution of the problem lies in an effective mass transit system which includes the revival of the KCR, the Bus Rapid Transit System, and the Light Rail Transit.
The KCR was first commissioned in 1964 and remained an effective transportation system until 1984, he said. Due to certain reasons such as increased running time and lack of investment reduced its operational efficiency, he added. As a result, ridership fell and finally caused its closure in 1999.
The KCR project has been approved by the Executive Committee of the National Economic Council (Ecnec), the Sindh CM said.
A feasibility study was carried out along with third-party validation of the study, he said. An Environmental Impact Assessment has also been conducted and a relocation of utility services is not required, he said.
K-Electric has assured uninterrupted power supply for the project, he assured investors, and federal and provincial taxes are exempt on the project.
Integration with BRTS lines has been made and the institutional framework in the shape of the Karachi Urban Transport Company (KUTC) is available, he said.
The Japanese have estimated the cost of the KCR at about $2.6bn and developed the investment structure as 85pc debt financing and 15pc equity financing by the provincial and federal governments, he said.
The Internal Rate of Return is estimated at 13.8pc, he said, and the economic benefits include reduced vehicle operation cost and travel time cost.
He invited investors to contribute in the equity of KCR along with federal government and Sindh government. He added that equity IRR compatible with infrastructure projects currently being developed in Pakistan would be offered to the investors.
Shah sought Chinese cooperation to include the project in the CPEC after Prime Minister Nawaz Sharif approved its inclusion in the initiative and provided a sovereign guarantee.
The JCC decided to include the project and asked the Sindh government to present its feasibility within the next three months, upon which Shah directed the Transport Minister Syed Nasir Shah to expedite work on the feasibility of the projects within the stipulated time.
