$1bn transport project may be scrapped

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KARACHI – A transport project worth $1 billion meant to benefit of the citizens of Karachi is likely to be scrapped by dint of indifferent attitude of the Sindh government as it has shown no interest in initiating the bidding process for inviting investment needed to operate buses in the province, sources have informed Pakistan Today. A memorandum of understanding (MoU) was signed between the provincial government and the International Investment Consortium (IIC) of Malaysia on September 7 last year for establishing modern terminals and bus services – including management and operation – on intercity routes.
According to the MoU, the Sindh government was supposed to initiate the bidding process, so the IIC could participate in it and respond to the request for the proposal, based on public-private partnerships principles, following which the IIC was to incorporate a company in the country, named IIC-Pakistan, for this purpose.
However, the indifferent attitude of the provincial government has been unnecessarily delaying the project, thus, making a project for the relief of the people of the city a distant dream.
Sources said that the government should realise the importance of this project and at least initiate the bidding process. The MoU agreement states that the IIC-Pakistan, after having complied with the competitive bidding requirements in accordance with the Public Procurement Regulatory Authority Rules 2010, would establish a state-of-the-art bus service and modern bus terminals as may be required by the Sindh government, based on agreed terms and conditions and contract negotiations.
The IIC-Pakistan would also ensure implementation of the project objectives, including but not limited to developing a model transport service between most cities of the province; increasing supply of better organised services; providing premier quantity standards of a modern service; providing service that complies with environment-friendly principles; combining strengths of public and private management; optimising utilisation of existing publicly owned infrastructure; providing service based on affordable fare system; providing service to ensure safety, quality and operational reliability; ensuring bus service to be sustainable; creating employment opportunities; and striving for poverty reduction.
The Sindh government, according to the MoU, would strive to assist the IIC-Pakistan by expediting the required clearances, registrations, permissions, permits, etc as required by the Motor Vehicle Act and related regulations. The provincial government would work in conjunction with other individuals, groups, companies, associations, societies, corporations, institutions, and governmental organisations and agencies to effectuate any and all of the foregoing objectives of the company, whether in the country or elsewhere.
Moreover, the IIC-Pakistan would ensure against losses, damages, risks, accidents and liabilities of all kinds that may affect the company, whether in respect of contracts, agreements, advances or securities; staff or employees of the company; or property belonging to, leased to or hired by the IIC-Pakistan either by setting apart funds of the company or by effecting such insurance. The IIC-Pakistan would also propose amendments in the Motor Vehicles Ordinance and the Motor Vehicles Rules framed thereunder whenever required in the furtherance of providing a safe, affordable, reliable and efficient transport service for the general public in Sindh.
Additionally, the IIC-Pakistan would provide training and development support to its staff, and coordinate with and provide assistance to educational and research institutions for imparting training and enhancing knowledge and techniques relating to sustainable transport, so as to improve the safety, affordability, reliability and efficiency of the transport service.
It is pertinent to mention here that the IIC-Pakistan agrees to undertake all studies, feasibilities, and preparation of proposals to ensure efficient, effective and affordable execution of the project components, and the government would strive to assist and contribute, to the maximum extent possible, in performance of the required tasks. The IIC-Pakistan has assured the provincial government that it is interested in rapid transfer of technology related to all facets of bus manufacturing, body building, information technology-related solutions presently available in the field, and establishment of industrial manufacturing facility.