Thursday, February 12, 2009

Japanese Team Completes KCR Feasibility Report

KARACHI (February 11 2009): The Japanese survey team has concluded its feasibility report of the $872.316 million project for revival of Karachi Circular Railway, paving the way for grant of loan by Japan in May 2009.
Another Japanese survey team, which was busy with making further study about the project aimed to mitigate traffic problems in the metropolis, sources told Business Recorder on Tuesday.The 10-member Japanese team, they said, would come back to Pakistan again in March this year, and the governments of Pakistan and Japan are likely to sign the loan agreement in May 2009.
After the release of funds, the project is to be completed in three to four years.According to the agreement with Pakistan, Japan External Trade Organisation (Jetro), commissioned by the ministry of economy, trade and industry, Government of Japan, would provide 100 percent funding for the project under Japanese STEP loan at 0.2 percent mark-up rate for a 40-year payback time, including a 10-year grace period.
Currently, the project had been undergoing different assessment studies, like Environmental Impact Assessment (EIA), Special Assistance for Project Formation (Saprof), etc, led by a group of Jetro, which were likely to be completed in the current month, said the sources.They said that Karachi was facing tremendous growth in traffic at 7.2 percent annually, beside its disproportionate yearly growth of buses of 17 percent causing congestion and accidents, increasing in travelling time.
Therefore, railway-based transport system was the need of the hour. They said the railway based mass transit system was only the solution to cater the public demand in the over populated metropolis.
However, they said that for completion of the project in time, government's attention and seriousness were needed to get the mega project on fast track by requesting the Japanese government for the immediate release of funds it sanctioned for the project

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