Pakistan Today

ECNEC approves development projects worth Rs 157 billion

Green Line Bus Rapid Transit System for Karachi worth Rs 16.1 billion also approved

The federal government on Thursday approved the Karachi Metro Bus project with a modified design and revised cost as it gave the nod to 10 mega development schemes worth Rs 157 billion.

The projects cleared during Thursday’s Executive Committee of National Economic Council (ECNEC) meeting, chaired by the Finance Minister Ishaq Dar, would allow the executing agencies to commence civil works on these schemes. Some of the projects approved by the economic body are of strategic nature, including construction of 120 kilometre long Islamabad-Raikot Section phase-I, which is a part of the Pakistan-China Economic Corridor, at a cost of Rs 95.4 billion.

The construction of the project will significantly enhance the potential for increased international trade between the neighbouring countries and the central Asian developing countries, according to a handout issued by Ministry of Finance.

Karachi Metro Bus project:

ECNEC approved the Green Line Bus Rapid Transit System for Karachi worth Rs 16.1 billion. The project will see buses run on the Green Line from Municipal Park Saddar to Power House Chowrangi in Surjani Town, a 21 kilometre long journey. The project will not only cut the length of the route by 3.2 Km but also excluded the component of procurement of air-conditioned buses from the federal financing.

After Prime Minister Nawaz Sharif announced to fund the project out of the federal kitty, the Sindh government had sought Rs 27.5 billion for construction of 21 kilometre long project and buying 105 buses at a cost of Rs 4.1 billion. However, the buses will now be bought by the provincial government.

According to the revised design, a 17.8 km long 2-lane dedicated signal free Bus Rapid Transit corridor will be constructed in Karachi. After completion, an estimated 400,000 passengers will stand to benefit from it every day.

Procurement of maritime patrol vessels:

A proposal by Ministry of Defence for procurement of six maritime patrol vessels (MPVs) for the Pakistan Maritime Security Agency at a cost of Rs13.9 billion was also approved by ECNEC.

However, the high powered economic affairs committee conditioned the project to procuring the boats on concessional credit with prior approval of terms and conditions of the loan by the Ministry of Finance.

Repair of diesel electric locomotives:

The meeting also approved a proposal by the Ministry of Railways for the special repair of 100 diesel electric locomotives at an estimated cost of Rs 5 billion.

Once these locomotives have been repaired, the freight and passenger service of Pakistan Railways is expected to significantly improve.

Energy Projects

ECNEC approved two energy generation projects with the combined capacity of 75 MW on a proposal moved by the Ministry of Kashmir Affairs and Gilgit-Baltistan.

The body approved the 40MW Dowarian hydropower project and the 35MW Nagdar hydropower project in district Neelum, Azad Jammu and Kashmir (AJK) worth Rs6 billion and Rs6.9 billion respectively.

The projects will be executed and operated by AJK Hydroelectric Board.

A proposal moved by the Pakistan Audit Department on a project for improvement of financial reporting and auditing (PIFRA) Phase II, second revised project was approved by ECNEC.

The project has an estimated cost of Rs10.4 billion, which includes foreign loan of Rs8.9 billion. It will help modernise the government’s audit procedures and help adopt internationally accepted auditing standards.

During the meeting, ECNEC also approved the livestock and access to markets project (LAMP) project.

The project will be completed at a cost of Rs3.8 billion and will be sponsored by Livestock and Dairy Development Department, Punjab.

Once executed, the project is expected to boost net income of targeted households by 50 per cent and cause 33 per cent decrease in mortality of live stock.

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