Mass Transit Body Likely to Create PPP-MQM rift

KARACHI, Sept 24: In a move that may create another rift between the Pakistan People’s Party and the Muttahida Qaumi Movement, the government of Sindh has established a Sindh Mass Transit Authority (SMTA) under the provincial finance department.

A notification in this regard was issued some 10 days ago, and Dawn has learnt from well-placed sources neither the Karachi city government nor the provincial transport department was consulted beforehand.Additionally, the Sindh government has appointed senior official Mukhtar Ahmed Soomro as the managing director of the new provincial body.

The sources said that the SMTA has been put under the administrative control of the Sindh finance department instead of the transport department, since the finance department is already handling the Karachi Mega City Development Project (KMCDP), funded by the Asian Development Bank (ADB), under which the bank will provide a $600 million loan for the implementation of a Bus Rapid Transit System.“The transport department and the Karachi city government do not have the capacity to manage the mass transit authority,” said the source.

“However, it will eventually be put under control of the provincial transport department.”The MQM and the city government which it dominates were opposed to the setting up of a provincial mass transit body. The issue came up for discussion during a London meeting between MQM chief Altaf Hussain and President Asif Ali Zardari, during which the president gave an assurance that a decision would be taken only after consultation with all stakeholders.

The sources also referred to a meeting in Islamabad attended by the Sindh chief minister, ministers belonging to the PPP and the MQM, and the nazims of Karachi and Hyderabad, during which President Zardari stated categorically that mass transit should remain within the domain of the city government, since it was not part of the provincial government’s job.

The notification regarding the establishment of the SMTA was reportedly issued before President Zardari’s meeting with ministers of the Sindh cabinet, and it has not yet been withdrawn. Except for the chief minister of Sindh and his daughter, who heads the Sindh finance department, no one knows exactly what the terms of reference of the new body are, or who its members are, maintained the sources.

Reportedly, the terms of reference for the SMTA are to be determined through an ordinance or act passed by the provincial assembly. “It remains unclear whether or not the new body will deal with the revival of the Karachi Circular Railway given the existence of the Karachi Urban Transport Corporation, which was formed for the sole purpose of the circular railway’s revival,” said a source.

“The SMTA was set up primarily to utilise the proposed $600 million ADB loan under the Karachi Mega City Development Project, for implementing the bus rapid transit system and conducting a study on light rapid transit,” the sources informed Dawn.City government’s role minimizedIt is widely believed that the provincial government’s move is aimed at minimising the city government’s role in the Karachi Mega City Development Project and transport projects for the city, for the government of Sindh has already decided not to avail itself of ADB loan facilities for water, sewerage and other projects.

It was initially decided that the ADB’s main investment loan would cover priority projects that included water, sewerage and drainage, solid waste management, the up-gradation of informal settlements, roads and transport. After the Feb 18 general elections and the establishment of a PPP-led government in Sindh, however, it was decided that the full ADB loan would be diverted towards the transport sector.

During his budget speech, in fact, the Sindh chief minister – who also holds the finance portfolio – stated that the ADB-funded Karachi Mega City Development Project was being upgraded and would specifically attend to mass transit needs, including light rail.The negotiations to secure financial assistance from the ADB were initiated during the tenure of the earlier government. According to Dawn’s sources, the ADB expressed willingness to extend a $800 million loan for the launch of the mega city development project, which would increase Karachi’s economic potential, strengthen its functioning and improve living conditions.

The ADB believed that the project would provide resources for the city government, the town municipal administrations and utilities that would enable improvements in their planning, management and financing, and in applying commercial principles in the provision of infrastructure and services.ADB funding for mass transit aloneIn the first phase, the bank extended a $13 million loan for technical assistance in carrying out studies in various sectors including water, sewerage and transport.

The ADB loan covers 75 per cent of the Karachi Mega City Development Project’s total estimated cost of $13.330 million, and carries a 32-year term, including a grace period of eight years. Interest is to be charged at 1 per cent per annum during the grace period, and at 1.5 per cent thereafter. The government contributes the balance of the equivalent of $3.33 million.

The mega city development project was being supervised through two offices, the Project Support Unit (PSU) administered by the Sindh Finance Department, and the Local Support Unit (LSU) administered by the Karachi city government. The PSU is the executing agency while the LSU is the project’s implementing agency.Sources said that the LSU has already conducted various studies with the technical assistance loan, almost all of which have been completed.

These studies included the development of IT platforms for tracking and maintaining the systems of the Karachi Water and Sewerage Board, a study on the construction of a Malir Bund Road, and another on forestation and aesthetic plantation in the city.In the meantime, however, the provincial government decided that it did not need the ADB’s assistance in the sectors of water, sewerage and the up-gradation of informal settlements, and that it wanted the bank to extend a main investment loan for the transport sector alone.

The sources maintained that the government of Sindh also decided to seek $600 million from the ADB instead of the $800 million sought earlier for the launch of the Bus Rapid Transit System and the Light Rapid Transit. “The ADB will also extend financial assistance for the implementation of the Light Rapid Transit,” a senior official told Dawn.

The sources said that the final talks to obtain the $600 million main investment ADB loan begin next month. After the agreement is signed, the first tranche of around $250 million is expected to be released within two to three months. “The government is in the process of winding up the Project Support Unit and the Local Support Unit, and of forming a Programme Reform Monitoring Unit and a Project Implementation Unit,” said a source. “Winding up the Local Support Unit means ending the Karachi city government’s role in the project.”

President Agreed in Principle to Give Karachi Mass Transit Project Back to CDGK

KarachiThe issue of the Karachi Mass Transit Project has taken another turn after President Asif Ali Zardari agreed in principle with the City District Government Karachi’s (CDGK) stance that mass transit was an “urban issue” and should be handled and implemented by the city authorities.

Sources privy to a meeting held in Islamabad disclosed that President Zardari listened to Karachi Nazim Mustafa Kamal’s stance and agreed that the mass transit project should be implemented by the CDGK. The meeting was attended by Sindh cabinet members from the Pakistan People’s Party (PPP) and the Muttahida Qaumi Movement (MQM), as well as the City Nazims of Karachi and Hyderabad Sources said, however, said that no final decision in this regard was taken at the discussion and the President asked the provincial government to clarify and present its case as to why it wanted to form the Sindh Mass Transit Authority (SMTA), and take over the Karachi Mass Transit Project.

It is worth mentioning here that the Sindh government had decided to create SMTA on the grounds that it was the demand of the donor agency — the Asian Development Bank (ADB) — to have a central authority to carry out the mega project.On the other hand, senior CDGK officials refuted the provincial government claims saying the ADB had imposed no such condition and it was “very comfortable” with the CDGK and had been negotiating with it for last three years over the project.

“Instead, it was the present provincial government which sent a delegation to the ADB headquarters in Manila, Philippines, requesting them that they wanted to create a provincial authority. The provincial government also requested a cut in the ADB loan for the mass transit project (from US$800 million to US$550 million or US$600 million),” CDGK officials claimed.They further said that City Nazim Mustafa Kamal had himself negotiated with the ADB for the US$800 million loan for the provincial government, which in turn had to be given to the CDGK as a grant for four different mega projects.

But after the taking over of PPP-led provincial government in Sindh, the provincial government negotiated with the ADB for the loan, calling for its deduction to USD 550 or 600 million and said the entire amount would be spent on the Karachi mass transit project.شّžCDGK agreed on spending the entire amount on mass transit but when provincial government conveyed CDGK of creating the provincial mass transit authority to implement the project, city Nazim raised this issue with the president in a meeting on Wednesdayشّž they informed, adding that the president had accepted CDGKشّžs point of view on this issue.

The CDGK officials, however, made it clear that no final decision had been taken or instructions issued to the provincial government by the president and instead, the provincial government was asked to clarify its position.On the other hand, the provincial government officials said no decision as to give mass transit back to the CDGK was taken at the meeting with the president, arguing it was the demand of the ADB as well as other stakeholders to create a central authority to implement the project.شّž

Everybody knows that the CDGK or any other district government in the country cannot initiate and complete such a mega project. There are many other agencies and institutions involved in the project and they can only be handled by a central authorityشّž they argued.

Critics and observers monitoring the situation said the rift between the provincial and city governments over the issue could further delay the project, as so far the donor agency Asian Development Bank was confused about the implementing authority as well as the amount needed for the project.

‘Govt must Improve Urban Bus Services to Resolve Traffic Issues’

* Speakers claim city will face ‘grave’ traffic issues by 2015

* Former mayor of Colombian town says raising taxes will discourage cars

* CM Task Force (Transport Development) Chairman Tasneem Noorani stresses need for separate department to run public transport

LAHORE: The government must promote and improve urban bus services to discourage the use of cars in cities, as it will help resolve traffic problems currently faced by commuters, according to speakers at a seminar on ‘Sustainable Urban Development and Transportation’.Jointly organised by The Urban Unit of the Planning and Development Department and the Clinton Foundation at the Chief Minister’s Secretariat on Thursday, the speakers at the seminar stressed the need for the provision of equal rights to citizens of all cities with regard to traffic facilities.

The government must ensure separate lanes for buses while constructing new roads, they said, adding that bicyclists should be encouraged in cities.Claim: The speakers claimed that there would be grave traffic jams across the city by 2015 if its infrastructure were not radically improved, adding that the masses should be encouraged to travel by bus. Former mayor of Bogota and renowned urban strategist Enrique Penalosa and United States Institute of Transportation and Development Project (ITDP) Senior Director Oscar Diaz provided detailed lectures through feature films about the transport systems of various countries.

The chief guest, Penalosa said, “We cannot term a city with numerous vehicles as a model city but the city. Such a city is one where a child can travel on his bicycle easily and safely.”Taxes: In this connection, he said, the government should construct separate routes for cyclists and pedestrians, and would have to discourage the use of cars by raising their taxes.

The government must take measures to provide better air-conditioned bus services to the masses so that they do not hesitate while travelling on them, he added. Oscar Diaz said that separate lanes for buses on all roads were necessary to successfully run the Bus Rapid Transport (BRT).

The fares should be easily affordable and everyone must have easy access to the bus stations, he said, citing that 1.4 million people travel under the BRT system everyday in Bogota, while only 21 percent use personal cars.Separate: While talking to reporters, CM Task Force (Transport Development) Chairman Tasneem Noorani stressed the need to establish a separate department to run public transport.

He said the task force would work on the new transport system as suggested by the speakers at the seminar and submit a proposal to Chief Minister Shahbaz Sharif for approval.Senior traffic police officials and other experts also addressed the seminar, which was attended by a large number of people hailing from different walks of life. app/staff report

Karachi Circular Railway among 51 Projects approved

ISLAMABAD, Sept 18: The government approved on Thursday 51 projects, including revival of the Karachi Circular Railway and construction of Cherah dam.The Central Development Working Party (CDWP), which met here with Deputy Chairman of Planning Commission Salman Faruqi in the chair, approved 42 new projects costing Rs237.7 billion.

The cost of nine projects was revised to Rs24.7 billion from Rs14 billion.In its first meeting of the current fiscal year, the CDWP approved Rs262.4 billion for the projects.The KCR project is expected to be executed in three years at a cost of Rs52.372 billion with a foreign component of Rs39.257 billion.The 50 km railway project will have 21 underpasses and overhead bridges and 23 stations in the city.

The Circular Railway would carry 700,000 passengers daily through 246 trains.Planning Commission Spokesman Asif Shaikh told newsmen that the foreign funding component for the projects was Rs91.2 billion.He said 32 projects of Rs238 billion related to infrastructure and 19 projects of Rs24.4 billion to social sector with foreign components of Rs30.81 billion and Rs9.90 billion, respectively

He said that the cost of 22 projects was over Rs500 million. The projects costing Rs255.50 billion were referred to the Executive Committee of National Economic Council for approval.He said 46 projects of Rs218.40 billion would be financed by the federal government, while 18 projects in Punjab, including 13 of the Multan Package costing Rs500 million, would be financed by the provincial government.

Plan Being Made to Convert Buses to CNG

There is a dire need of plying at least 1,500 CNG buses on the city routes to make the environment pollution free as diesel-fuelled buses have been creating serious environment concerns for a long time in the provincial metropolis.

While talking to The News, official sources in the Transport department said that the government was devising a strategy to convert all the diesel-run buses to CNG-run ones, and for that purpose the government had already opened bid and called the transport owners to participate in the project as they would be given 25 per cent subsidy on the purchase of the CNG buses.

The sources said that the provincial government would carry out the project in the whole of Punjab and almost 3,000 CNG buses would be brought on the major city routes in this regard. They said that the government would not succumb to the pressure of the transport owners for any further increase in the fares of the public transport vehicles. They said that the government had already increased fares twice in the same year and by increasing the fares again, the government would not add to the troubles of the people.

On Tuesday, the transport owners had started receiving extra fares in the as the government increased the price of diesel by Rs 3.50 per litre while the provincial government had fixed Rs 12 on the first stage according to the fares list.However, there were many instances in which wrangling occurred between the transport owners and the commuters in the city as the former charged Rs 15 on the first stage while referring to the increase in the diesel price.

While talking to The News, the representatives of the Urban Transport Union said that the treatment of the government towards the transport owners was not fair, as it had already stopped subsidy given to them due to the unprecedented rise in the diesel price.The said the government had also fixed the fares of the public transport vehicles without considering the financial problems of the transport owners.

PTA secretary Chaudhry Muhammad Iqbal while talking to The News said that the provincial government had been making efforts to provide quality transportation to the masses while taking requirements of environment into consideration as the diesel-fuelled buses cause pollution. To a question whether the PTA would increase the fares as the transport owners were demanding it in the wake of up to 6.2 per cent (Rs 3.50 per litre) hike in the prices of the diesel, he said the provincial government would not make the masses suffer while increasing the fares according to the wishes of the transport owners.

He said that the PTA had already enhanced the fares of the public transport vehicles twice in a year since the prices of petroleum products had seen an unprecedented hike in the international oil market. The PTA would not increase the fares of the public transport vehicles unless the government had to raise the diesel prices for meeting the financial gap.

He said that the government was mulling to change all the existing diesel-run transport vehicles into the CNG ones in a bid to create a healthy environment. He said that there were 22 routes in the city where the public transport vehicles were not being plied and the Transport department had asked the transport owners to bring new buses for these routes.He said there were six transport owners, who had shown willingness to ply new buses on these routes. While talking about the over-charging of fares by the transport owners, he said that the government would not show any laxity to punish those transport owners who were over-charging on the city routes.

He said that special teams were formed to check the fares being charged from the commuters by the transport owners on different routes and the department had fined a large number of the transport owners over violation of the fares list, which had already been fixed by the officials of the department. Over the issue of the purchase of the CNG buses by the transport owners, he said that the provincial government would give 25 per cent subsidy to the transport owners and the rest of the amount would be paid by them and the provincial government would not make any other financial arrangements for the transport owners.

CDA Yet to Finalise RMTS, CNG Bus Service Projects

ISLAMABAD: Traffic problems in the federal capital are increasing with each passing day but the Capital Development Authority (CDA) is still planning to launch Rapid Mass Transit System (RMTS) and CNG bus service between Rawalpindi and Islamabad.

The CDA started work on launching RMTS and CNG buses projects few months ago to provide better transport facilities to the people, but they could not give final shape to these projects so far. According to the CDA sources, the transport problems would increase in the city further in near future, as the CDA’s relevant directorate had not yet completed documentary work of these much-awaited projects.

The sources said one the hand the CDA was not properly working on the proposed projects while on the other currently there was no organised transport service operating between the twins cites. Private transport was the major mean of mobility between the two cities, they said, adding minibuses and vans were plying on 16 routes within and between the tow cities.

A survey conducted by Daily Times revealed that due to negligence on part of the authorities concerned the commuters, including government servants working in Islamabad and Rawalpindi, have to face hardship twice a day – first in the morning and then in the evening. The drivers and conductors of the public transport usually misbehave with commuters, as there is no schedule for minibuses and vans to reach from one point to another.

They keep their vehicles waiting for a long time at every stop resulting in exchange of harsh words between commuters and them.Momin Agha, Director of Directorate of Municipal Administration (DMA), told Daily Times that his directorate was working on the plan to launch CNG bus service but it will take time

Enrique Penalosa Meets City Nazim Karachi for Bus Rapid Mass Transit System

The former mayor of Bogot·, Columbia, Enrique Penalosa called on City Nazim Syed Mustafa Kamal at his office on Tuesday and offered all possible assistance and support in having a Bus Rapid Transit System in Karachi on the pattern of the Columbian capital.

Penalosa, who is now a consultant of Bus Rapid Transport System (BRTS), had a discussion with Kamal about the implementation of the same system in Karachi. He said this system was running successfully in Bogot· and he and his team would provide all possible technical cooperation for successful implementation of the same in Karachi.

The former Bogot· mayor also extended an invitation to the city Nazim for an official visit to Bogot· so that he could personally assess the system there. He further said it was a better system in the mass transit system and he hoped that the bus rapid transport system would prove successful in Karachi due to the availability of wide roads.

Kamal said that the government was working on the introduction of bus rapid transport system in Karachi with the coordination of Asian Development Bank.“In the first phase”, he said “three corridors have been selected in Karachi while the system will bring in other parts of the city later on.

8 Billion dollars at stake as Pakistan People's Party government Shows Lack of Interest Mass Transit System

The expected foreign investment of nearly eight billion US dollars in the Lahore Mass Transit System is reportedly at stake due to the lack of interest in the project on part of the Punjab government.

Sources claimed on Sunday that the elevated expressway being proposed by the government, instead of the mass transit system, had been opposed by the Middle Eastern group building a $800 million multi-purpose commercial centre on Ferozepur Road. The group has reportedly conveyed to the government, “we are out if it (elevated expressway project) is taken up.”Sources also claimed that the group had synchronised the commercial centre with the underground rail system, and the overhead expressway did not suit them.

Everything was ready early this year for launching the first phase of the project involving Rs1.4 billion loan from the Asian Development Bank, and an expected $1 billion direct investment from the private sector. But, the government’s priorities appear to have changed.

The project was conceived in 2004, and $9 million had been spent on getting prepared its detailed feasibility and reference design. The ADB, which had agreed to advance the soft loan for the project, too had spent a lot of money in getting the feasibility reports verified through its own international sources.“The ADB which was about to fund the project is considering to put it on hold,” the sources said.

According to the sources, after the completion of the basic homework early this year, both the previous government and the ADB were expecting that physical work on the project would begin by April or May 2009. And keeping this in view the bank had started seeking transition advisors from the international market.They added the leading international financial institutions had shown interest in becoming the transition advisors, and the ADB wanted the provincial government to now make institutional arrangements for executing the project.

The sources said the government, however, did not make any institutional arrangements which also proved a turn-off for those showing interest in becoming the transition advisors, making them move away from it.They said under the project, said to be having a 100-year investment potential, the city was to be given a modern train system in four phases.

In the first phase, expected to be started early next year, the Punjab government was to build tunnels, viaducts and stations at a cost of $1.4 billion to be provided by the ADB in the shape of a 32-year loan. Another $1 billion direct investment was expected to come through the private sector, which was required to build the system, bring rails and run them on BoT basis for 15 to 20 years.The project was estimated to bring in $8 billion, half of which in the shape of direct foreign investment. “But it looks the government is not interested in it,” the sources said.

They said the government was abandoning the project at a time when even cities having three million population were being given mass transit metro systems. Delhi was having its third such system, which was also being given to Bombay and Bangalore because it was reliable, decent, and economically viable.The sources claimed that the economic rate of return of the Lahore’s mass transit system was 13.5 per cent.

The system was expected to change the fate of Lahore along with its more than seven million people by giving the city a modern transport system, besides badly needed jobs.Pointing out flaws in the elevated expressway the government reportedly intended to give to the city covering Lower Mall and the Ferozepur Road, the sources wondered from where the funds awould come for it.

“They (express ways) have been discredited all over the world because they create urban blight. And their construction means the city is losing all chances to go underground forever,” the claimed.

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We have all expectation from Chief Minister Shahbaz Sharif and I think he knows the importance of this project. Hope for the materialization of this project.

CNG Buses: Plan to be Based on 80 : 20 Debt Equity Ratio

ISLAMABAD: The Prime Minister’s Programme for 8,000 Compressed Natural Gas (CNG) buses would be based on a 80:20 debt equity ratio.The official working paper on the project available with Daily Times reveals that the cost each bus would come up to Rs 3.6 million, however, due to the recent depreciation of the Pakistani rupee, the final price may end up higher than this figure.

A loan of Rs 2.9 million per bus would be available from designated banks with 10 percent interest rate payable in five years and the government would pick up 100 percent payment of interest in 60 installments. According to the paper, the federal cabinet in its decision taken on July 16, 2008 approved the launch of 8,000 CNG buses for efficient, environment-friendly and affordable public transport in nine mega cities of the country namely Karachi, Multan, Lahore, Peshawar, Quetta, Faisalabad, Hyderabad, Gujranwala and Rawalpindi/Islamabad.

Call to Expedite Operation of CNG Buses in Mega Cities

ISLAMABAD (September 12 2008): Minister for Environment, Hamidullah Jan Afridi on Thursday directed the concerned ministries and departments to expedite the operation of CNG buses in mega cities.

Afridi who is also Chairman of the Steering Committee on CNG buses, directed all concerned to start the project at the earliest to the benefit of people through Prime Minister's cheaper transport program."Provision of cheaper and environment friendly CNG buses to masses is part of the program approved by the Prime Minister of Pakistan," he said, and reminded the stakeholders for speedy implementation. He was presiding over the 2nd meeting of the Steering Committee on Prime Minister Programme for CNG buses.

Minister for Environment directed the Ministry of Finance to take banks on board to ensure timely loaning facility to the private operators throughout the country for this purpose. The minister also directed the concerned quarters to seek the co-operation of the private sector for high pressure CNG filling stations in the cities where CNG buses would operate.

He directed that Hydrocarbon Development Institute of Pakistan (HDIP) should establish high pressure CNG stations as a pilot project in these cities. The minister said that a uniform policy would be adopted for establishing the project management units for the operation of these buses in the all four provinces.

The minister asked the provinces to submit their demand for buses to operate in the specified cities and the committee will decide about the number of buses to be operated in particular cities.Joint Secretary (Development) Ministry of Petroleum and Natural Resources, Tahmoor Azmat Usman informed the Steering Committee that the matter of provision of CNG to the private operators in nine mega cities was taken up with the SNGPL and SSGCL who have shown willingness to ensure availability of CNG for the buses project.

The meeting was attended by Khusnood Akhtar Lashari, Secretary Ministry of Environment, MD ENERCON, Transport Minister of Sindh, Secretaries Transport of the provinces, representatives of the relevant ministries and operators of CNG buses.

Bus Train Service Launched

By Fazal SherISLAMABAD: Islamabad Traffic Police (ITP) and National Transport Research Centre (NTRC) on Monday launched Friendship Bus Train Service.Senior Superintendent of Police (SSP), Traffic, Zubair Hashmi told journalists on the occasion that the service would improve public transport facilities and help reduce traffic problems in the capital city.

He said mostly, commuters from low-income groups would benefit from the service whose route was from Pak Secretariat to G-11. He said stop-to-stop fare for the service had been fixed at Rs 10.He said the 150-seat bus train would consist of three compartments, one for women and two for men.

The SSP (Traffic) said the NTRC had launched the same service 10 years ago but had to abandon it after a short time due to financial constraints.He said the ITP and the NTRC had got repairable vehicles of old service ready for Friendship Bus Train Service. He said the ITP would take care of the service.

He said more vehicles would be put on the city’s different routes in future.Hashmi said the ITP had prepared a plan to ensure smooth flow of traffic in the city during Ramazan.He said traffic policemen would be deployed at all busy intersections and near big mosques in the city during Iftar.He said the ITP had launched a campaign to create awareness of traffic rules among road users.

He said people hampering traffic in fast lanes by driving vehicles slow would be ticketed in future.The SSP (Traffic) said the ITP had begun issuing tickets to motorists found not fastening seatbelt, using cell phone or travelling with high beams on during nighttime.

He said no violators of traffic rules would be spared.Hashmi said fine for not fastening seatbelt was Rs 300 and that for using mobile phone during driving or traveling with high beams on Rs 200.