Sindh Chief Minister Syed Murad Ali has decided to step up efforts to include Karachi Circular Railways (KCR) in CPEC project as Keti Bandar has been taken up.
He took this decision while presiding over a meeting on KCR at New Secretariat on Tuesday.
Additional Chief Secretary (Dev) Mohammad Waseem, Principal Secretary Naveed Kamran Baloch, Secretary Transport Taha Farooqui, Secretary Energy Agha Wasif, chairman Sindh Engro Mining Company, Secretary Finance Hassan Naqvi and others attended the meeting.
Secretary Transport Taha Farooqui said that the length of the project is 43.12 km with 23.86 km elevated, 3.7 km tunnel and 15.56 km surface. It would have 24 stations and the projected passengers per day would be around 0.58 million per day and the designed speed would be 100 kilometres per hour.
He said that JICA is considering providing a soft term loan on a markup of 0.1 percent repayable in 40 years, including 10-year grace period. Karachi Urban Transport Corporation (KUTS) has been formed to implementation of the project. He added that the cost of land acquisition, compensation to project affected persons, GST, import duties and administrative cost will be borne by the stakeholders of KUTC like Ministry of Railways, Sindh government and KMC. He also pointed out that KUTC has already been registered with Security Exchange Commission of Pakistan.
The chief minister was informed that the stakeholders with the equity shares are Ministry of Railways 60 percent, Sindh government 25 percent and KMC 15 percent. JICA has carried out a study ‘Special Assistance for Project Formulation (SAPROF-1) during November 2008 to February 2009 and furnished its report in May 2009. On the basis of this report, PC-I was prepared and approved by Planning Commission of Pakistan in ECNEC meeting held on September 3, 2009. Environmental Impact Assessment (EIA) of the project was accrued out and approved by EPA on July 4, 2009. Third party validation of feasibility study by M/s Louis Berger USA, Resettlement Action Plan (RAP) of the project affectee was commenced in May 2009 and completed in 2011.
The chief minister was apprised that Karachi Electric has declared KUTC/KCR as strategic customer. KPT has confirmed on February 2011 to hand over 0.85 acres land to KUTC on commencement of KCR project. The resettlement Action Plan (RAP) study was approved by donor agency on July 28, 2011. The revised cost of the project has been approved at $2.6 billion ECNEC in 2012. SUPARCO has finalized satellite Imagery of KCR Route alignment and preliminary alignment plans finalized in consultation with JICA experts and concerned railway official.
The chief minister directed secretary transport to explore other donors to start the project. “This is unacceptable that the project is hanging in balance from 2008,” he said and asked his team to talk to local financial institutions and international agencies. “This cannot be delayed further,” he categorically said.
The chief minister said that he would take up this issue with prime minister to include this important project of KCR in CPEC. “I am writing a letter to the prime minister as he was supportive,” he said and added that he would also hold a meeting with ambassador of China and Minister for Planning Ahsan Iqbal,” he said.
He said that traffic issues in the city are on the rise and turning complicated day by day. The solution of these issues lies in KCR and Rapid Bus Transport (RBT) apart from effective traffic management, widening of roads and constructing underpasses and fly. He directed the transport department to prepare KCR case for CPEC.
