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Infrastructure Development in Pakistan

Rail links to be set up with Afghanistan, Iran and Turkey



Pakistan has decided to establish rail linkages with Afghanistan, Iran and Turkey aimed at boosting trade and tourism amongst the Muslim countries, official sources told. The decision was taken at a recent special meeting of federal cabinet convened to review the performance of different ministries. Prime Minister Nawaz Sharif presided over the meeting.

The sources said the Prime Minister personally took an interest in the establishment of rail links with three Muslim countries.

The cabinet also decided that overstaffing in Pakistan Railways would be rationalised gradually.

Official documents reveal that the cabinet was briefed on the rail network of the country and the condition of assets: 67 per cent of the total track of 11,778 kilometres is overage; the length of non functional track is 1176 km, 75 per cent of the 452 locomotives are overage, 2 per cent of the 1,748 passenger coaches are also overage; 71 of the 10,656 four wheeler freight wagons are overage, and 90 per cent of the telecom and signalling system is obsolete.

The cabinet was informed that the revenue receipts had registered an increase of Rs 5.94 billion. These receipts stood at Rs 16.06 billion during the financial year 2012-13 whereas the receipts are Rs 24 billion in the financial year 2013-14.

The number of loaded freight wagons had increased from 46,617 in 2012-13 to 76,304 in 2013-14. In addition, 5.74 million more passengers were carried during 2013-14 as compared to 2012-13. The punctuality of trains had increased from 25 per cent to 60 per cent.

In order to restructure the Pakistan Railways, the ministry is working in collaboration with LUMS. The UET Lahore and NED Universities have also been engaged in the process. The Walton Academy in Lahore, spread over 40 acres of land, is being rehabilitated.

The cabinet was informed that salaries, pensions and fuel account for 85 per cent of the Railways expenditure.

The Ministry of Railways gave a commitment that it will provide transport for coal to four power plants at Jamshoro Rahim Yar Khan, Muzaffarabad and Sahiwal subject to improvement of track and signalling system. The improvement would require at least 3- 3-1/2 years. For the transportation of coal to coal based power plants, 63 locomotives and 3,065 wagons would be required. In addition, Rs 52.1 billion would be required for rehabilitation of the infrastructure. The total cost hovers around Rs 123.5 billion. A separate freight coal company is also being established by the Pakistan Railways.

The cabinet was also briefed on the 107 kilometres new rail link between Islamabad, Muree and Muzaffarabad. It was stated that feasibility study of the project would be carried out at a cost of Rs 57.92 million. The study shall be completed in six months. It was proposed that the project may be undertaken on BOT basis.

The Minister for Railways informed the cabinet about the rail linkage under Early Harvest Projects of CPEC. Upgradation of the existing ML-1 from Peshawar to Karachi and establishment of a dry port at Havelian are included in the early harvest projects. A joint feasibility study would be undertaken in collaboration with Nespak and China Railway Eeyuan Engineering Group Company Ltd by PRACST which is a subsidiary company of Pakistan Railways.

In order to generate revenue in the freight and passenger sectors, the following measures have been adopted: (i) establishment of freight company for new business avenues like coal power plants; (ii) restoration of container trains for dry ports/inland container terminals; (iii) restoration of cargo train between Karachi and Lahore; and (iv) long term business agreements with the PSO, Maple leaf Cement, NLC etc.

For revenue generation in passenger sector are as follows: (i) reduction and rationalisation of passenger fare, increasing patronage and earnings; (ii) restoration of Akbar Express, Faiza Ahmad Faiz Express, Musa Pak Express, Jand and Pind Dadan Khan Shuttles (Mehran Express being restored); (iii) tapping religious, political, cultural and festivity tourism (Raiwind, Sehwan, Sikh, Hindu and Azadi Special Trains etc; and (iv) branding.

One of the major initiatives of the Ministry is retrieval of Railways land from encroachers. Moreover a decision has been made neither to sell railways land nor leasing it out for 99 years. However, short and medium term leases would be granted.

Minister for railways stated that to make Railway stand on its feet, the Railways lands, which, as per revenue record are state lands, have to be transferred in the name of railways. This process has been completed in the Khyber Pakhtunkhawaka province and need to be replicated in the other three provinces. The commercial utilisation of railway land has been initiated.

As regards scrap disposed policy, a transparent process has been adopted. The disposal has been decentralised. The size of the lot has been rationalised to not more than 2000 tons for fair competition. Advance payment of 50 per cent is a pre-requisite for getting the sale order.

Minister for Railways stated that Pakistan Railways was ready to offer 260 acres of its land for the Karachi Circular Railway. He recommended that the project may be undertaken independently by the City District Government Karachi/ Government of Sindh.

The Minister also proposed the upgradation of Risalpur Locomotive Factory, Carriage Factory Islamabad and Concrete Sleeper Factory Kotri under Public Private Partnership (PPP).
 
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KP government to start construction of Rs 8.89 billion worth hydel power stations


The provincial government of Khyber Pakhtunkhwa has approved Rs 8.898 billion for construction of some major and other small hydel power stations in various parts of the province under the supervision of the Department of Energy & Power.

The decision was taken in the 6th meeting of the Board of Hydel Development under Khyber Pakhtunkhwa department of Power & Energy held here with Chief Minister Pervez Khattak in the chair at Chief Minister’s Secretariat Peshawar.

Those who attended included Minister Energy & Power Mohammad Atif Khan, Minister Finance Muzaffar Said, Chief Secretary Amjad Ali Khan, Additional Chief Secretary Khalid Pervez, Principal Secretary to Chief Minister Mohammad Ishfaq Khan Secretary Energy & Power Sahibzada Saeed Ahmad, CEO PEDO Bahadar Shah, representatives of the Bank of Khyber, State Bank of Pakistan and other concerned sectors.

The energy sector projects are included the construction of Koto Hydel Power Project in district Dir Lower with power generation capacity of 40.8 MW for which Rs 1.453 billion has been released. It will be completed with estimated cost of 12 billion while its tender bids have been opened last month.

The rest of the projects included Construction of Matiltan Hydro Power Project in Swat district having the capacity of 84 MW for which Rs 1,020.968m have been released. Similarly Rs 757.905 million have been released for construction of Karora HPP in Shangla district, Rs 735.198m for Jabori HPP in district Mansehra, Rs 1,706.810m for Daral Khwar HPP in Swat district and Rs 199.997m for Lawi HPP 69 MW in Chitral district Rs 303.560m have also been released for feasibility studies of small power generation sites Phase-I that will yield total electricity of 2000 MW of up to 15 MW small units while Rs 341.560m released for feasibility studies of raw sites Phase-II wherein small power houses up to 10 MW will be set-up in 12 districts of the province and it would produce a total volume of 1000 MW electricity. The 9th important project is about construction of 356 mini/micro hydel stations for which Rs 2,379.000m have been released. This plan was inaugurated through PTI chairman Imran Khan by laying foundation stone of 56KW Sakhra Lalkahoo micro hydel station in Tehsil Matta Swat on August 7 this year.

The KP government has already decided that under first phase of the energy plan, the provincial government would establish 356 small hydel power stations at village and town levels in remote areas of the province with cost of Rs 12 b whereas Rs 6.70 billion have been allocated for it.

Addressing the participants of the meeting the Chief Minister directed the authorities of the Pakhtunkhwa Energy Development Organisation (PEDO) for the best utilisation of the allocated resources to arrest the prevailing energy crisis, initiating hydropower projects and taking emergency measures for its timely completion.

The meeting also approved multi audit mechanism for judicious and transparent expenditures of the allocated funds. Pervez Khattak said that expeditious measures would not only help in speedy control over energy shortage in the province, but would also generate maximum economic and employment opportunities to put the people on the track of progress and prosperity.

He said that besides hydel resources, the province is blessed with precious oil, gas, coal and solar resources. He said that maximum exploration of these resources for the development of the province is among the top most priorities of the present PTI-led provincial government and for this purpose, he said, his government is burning mid nights and to achieve the set targets.
 
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View of (under commissioning) 50 MW Foundation Wind Energy II Limited

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