Sindh Government Against Giving 2,000 CNG Buses to Karachi

KARACHI (October 07 2009): The Sindh government has opposed bringing of at least 2,000 environment-friendly CNG buses only into the city, Business Recorder learnt on Tuesday. According to sources, Japan International Co-operation Agency (Jica) would provide a loan while the Federal Environment Ministry would provide the remaining funds to bring at least 2,000 environment-friendly CNG buses for all districts of Sindh province, which would ply on various routes of the province on public-private partnership.

The Centre has tasked the Jica to undertake the study after which the CNG buses would be imported from Japan. A preliminary meeting with Jica representative, Nobuhiro Kawatani, was held in Islamabad on September 15, 2009, they added. They said that Jica Mission had visited Karachi and held a meeting on October 5with the representatives of Sindh government and the City District Government Karachi (CDGK) for conducting preparatory survey.

The CDGK demanded to name the project as Karachi Urban Transport Master Plan. However, the Jica Mission did not agree, saying that the title should remain 'Preparatory Survey', which was later finalised as Karachi Transportation Improvement Project, they said.They said that Jica would submit the study report within 20 months after the award of work in order to main the quality and correctness of the report.

The study would include persons per trip, future traffic demand, roadside interview of citizens, transport related institution such as District Regional Transport Authority (DRTA), travel speed, Karachi Urban Transport Master Plan 2030, environment impact, estimate capital cost for Rapid Mass Transit Project, etc.Jica Mission stated that they would not select the consultant until PC-II is approved by the Central Development Working Party (CDWP).

They said that Sindh Transport Department had been sidelined in this project and it was made only for city, which the Sindh government would not accept at any cost. In the meeting on October 5, 2009, the transport department officials opposed the idea to run all these buses in Karachi alone, depriving other districts of the province from this travel facility.Moreover, a letter No SO (V) JICA/2009 was forwarded to the Additional Chief Secretary (Development) by the transport department, which stated that, "all the transport related projects come under the scope of Transport Department, Government of Sindh but no role has been provided to Transport Department under the draft.

It is therefore, proposed that Transport Department may be given due role for the project".It says Transport Department should be made as a counterpart agency and as a co-ordinating body for implementation of the study. It further proposed that the study should not be confined to Karachi city only and it should cover entire province and may be titled as Sindh Transportation Infrastructure Improvement Project. Sources said that the federal government should focus the entire province and not a single city, adding that the Sindh government should be handed over these buses that would be plied in all 23 districts of the province under direct supervision of provincial government

MoR Directed To Start KCR Project's Tendering Process: 'Third-Party Validation Put in Pending'

KARACHI (October 05 2009): The Cabinet Division has directed the Ministry of Railways to go ahead with the tendering process of the Rs 128.5 billion Karachi Circular Railway (KCR) Project, pending third party validation of the project, to avoid further delay.

The Executive Committee of the National Economic Council (Ecnec) had earlier asked the Pakistan Railways to conduct third party validation of the much awaited KCR project while approving it in the council's session on 3rd September. The validation of the project "Revival of KCR as Modern Commuter System" was made mandatory to ensure best design and assess cost escalation estimated by Special Assistance for Project Formation (SAPROF).But to avoid any delay in the execution of the project, sources said, the federal government had decided to remove the condition of validation by western experts.

They said the validation move was likely to further delay the project, as the modification and inordinate delay had already raised the project's cost to $1.58 billion from the original cost of $ 872.316 million.However, for the transparent and smooth execution of the project, the sources said the validation by a foreign country was needed for such a mega project. As the government of Japan was funding the important project the material mostly imported from the funding country was to be ensured as cost-effective, they added.

They said the Japan International Co-operation Agency (JICA), which had conducted different studies of the project with the guidelines of the World Bank had also raised no objection over the validation by a third party.However, showing his unawareness regarding pending validation of the project, Ejaz Khilji, Managing Director, Karachi Urban Transport Corporation (KUTC) said the third party involvement would not affect the process of the KCR project. The KCR project was to be funded by the government of Japan through the Japan Bank of International Co-operation (JBIC). Tokyo had commissioned 100 percent funding for the project under "STEP Loan" at 0.2 percent mark-up rate for a 40-year payback time, including a 10-year grace period.

The government of Japan had earlier promised to release $1.58 billion STEP loan to be used for the KCR project and it had commissioned a study under the aegis of Japan External Trade Organisation (JETRO).They said KUTC would be the vehicle for the implementation of the project having on its Board-Directors the senior officials of Pakistan Railway, Government of Sindh and City District Government Karachi (CDGK).

4,000 CNG Buses To Be Operational in Karachi

KARACHI (September 21 2009): Some 4000 CNG buses would be operated in Karachi with the co-operation of federal government, which has given a subsidy of Rs 2.5 billion. Immediately, under the project, to be implemented by Karachi Mass Transit cell with the participation of private sector, 500 buses would start plying in the city by the end of December 2009.

The pre-qualification of the operators in the private sector has started. The DCO Karachi Javed Hanif chaired a meeting of Implementation Regulatory Committee for CNG Buses, which was attended by senior CDGK officials and representatives of various NGOs.DCO said that city district government is taking every step for enhanced transport facilities in Karachi and 50 CNG buses have already been introduced.

The Director General Karachi Mass Transit Cell, CDGK, Malik Zahirul Islam gave a detail briefing about the operation of 4000 CNG buses in Karachi and said the project will be completed in 5 years under public transport partnership and co-operation of Federal Government.He said some 500 to 1000 buses would come on city roads during 2010 and will be plied on 40 routes.

He said Karachi Mass Transit Cell has identified 40 routes while one bus will carry 70-100 passengers. Besides Malik Zahir, the meeting was also attended by EDO Transport Iftekhar Qaimkhani, Transport Consultant Mohammed Athar, President Karachi Transport Ittehad Irshad Bukhari, Special Secretary Planning and Development Sindh, CDGK officials and representatives of orangi Pilot Project.

Karachi Circular Railway: Looking Ahead

The Karachi Circular Railway (KCR) closed down over 10 years ago. The last train that ran covered the 32-km distance from the city’s eastern suburbs to the central station in two hours earning a total fare of just Rs8,000. Little else needs to be said to explain the cause of its closure............................................

In a quarter century of its stumbling operations the KCR burdened the country’s railways with huge losses while providing little relief to commuters. Nevertheless, its refurbishment and revival remained on the books of planners, though the focus shifted chiefly to tram-cum-bus transit corridors — seven of them — running through the conurbation of colonies and shanties that Karachi had become since independence.

In 20 years the corridor scheme attracted no investor. The government didn’t pursue it either. The chief deterrence was its huge cost and environmental hazards. The forsaken circular railway plan was dusted off the shelf when the Japanese government showed interest. It has since agreed to finance it fully after years of painstaking study by Japanese experts.

The Executive Committee of the National Economic Council (Ecnec) approved the project recently, subject to a second and more careful look at its staggering cost of Rs128.5bn.

For the people of Karachi, the project is a surprise gift — but from the people of Japan, not from the MQM or the ANP as their leaders have claimed. It is not usual for a project of this size, which also has a commercial dimension to it, to be financed entirely by a foreign government or agency, and that too at a token rate of interest. The three tiers of government — federal, provincial and district — will now have only administrative costs to fight over, if they must, which is barely five per cent of the capital investment.
The real test lies in the speedy and honest implementation of the project. And that is where doubts take hold.
Hardly ever has a project of this size and complexity been completed on schedule and within the estimated cost. Close at hand is the example of the much smaller and simpler Lyari Expressway. It was to be completed in two years. It is now in its sixth year and perhaps will take two more.
The rate of commission — another name for embezzlement — is now said to be 30 per cent of the cost. Gone are the benign days of the legendary and ‘legitimate’ 10 per cent. It is no longer confined to bribery or waste. Political establishments and homesteads, here and abroad, jaunts and feasts of leaders and hangers-on all have to be taken care of.

Pakistan’s political parties have no endowments, nor do their members pay a large fee. Slush funds are also needed, on occasion, to bring down a government. Money cannot be stolen from the treasury all the time.

Since the KCR is the best and, perhaps, the last chance for Karachi to have a mass transit system, maybe the officials and contractors employed on the project can be persuaded to take a vow not to siphon off funds and to strive to complete the work within the stipulated period of four years.
Whether just one or all three levels of government are partners in the venture is immaterial. What matters is that the professionals executing the project should not be in any way beholden to any government, nor should they be politicians’ nominees. One has to be wary on this count when embezzlement is alleged even in the building of houses for the homeless of Balakot affected by the 2005 earthquake. No wonder foreign agencies now have second thoughts about the pledges they made to help the families displaced by extremist violence in Swat.

Fast electric trains unhampered by level crossings going full circle every six minutes on a 43-km dual track would surely make transit corridors unnecessary, especially after branch lines are added in the second phase. Enlarging and modernising the city’s bus fleet for feeder routes, however, would remain a necessity.

Karachi’s bus fleet is obsolete, mechanically unfit, polluting and wholly inadequate. It has been almost three years since Ecnec approved a scheme for 8,000 CNG buses for major cities (Karachi’s indicated share was 5,000), with a 25 per cent subsidy. Not one bus has come on the road so far. It was left to Karachi’s confident nazim to stake municipal money, but on no more than 50 buses. That is a drop in the ocean but has indeed made travel fast and economical on the routes on which these buses ply.

The KCR could fail if buses are not available at all stations where the trains halt to carry passengers to their onward destinations. Finally and crucially, the circular railway, however speedy, punctual or economical, would not be financially viable if it were to rely entirely on the fares commuters can afford to pay or are willing to pay.

City mass transport — rail or bus — all over the world is subsidised. It is viewed as a social function of the government and not a business venture. The economic gains are invisible but many. Getting to work on time is just one of them.

The KCR will be in trouble and bus transport will continue to deteriorate if the government does not find a way to subsidise both. Secondly, Pakistan, like the rest of the world, must convince the private sector to manage transport services while the government invests in infrastructure.
To encourage bus service, the price of vehicles can be subsidised and fares adjusted from time to time to keep pace with operating costs. Shahbaz Sharif’s first government did this in Lahore with some measure of success.

Wage earners queuing for wheat flour and sugar and then jostling to get into a rickety bus may not bring a government down, but they will remain a threat to public order. This threat looms larger in Karachi than elsewhere for it is the only megalopolis in the world where public transport is run by a mafia. Where the state shirks responsibility mafias take over. In Karachi they provide a service which the state or civic authority should but does not.

Dubai Metro Inaugurated

The gorgeous and most modern Dubai Metro is inaugurated ...............

http://www.gulfnews.com/gntv/videos/10347766.html


http://news.bbc.co.uk/2/hi/middle_east/8249161.stm

Mass Transit System to Start Soon: Shahbaz Sharif

Big news for Lahore................... Way to Go
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Chief Minister Muhammad Shahbaz Sharif has said the Mass Transit Project is of paramount importance and the Punjab government wants to launch it immediately to provide better facilities of communication to people.

He said provision of comfortable and quality travelling facilities to the masses was top priority of the government and a strategy had been adopted in this regard.

Talking to a delegation of Chinese company, Norinco International, led by its Vice-President Mr Hu Farong here on Tuesday, the chief minister said China was extending full cooperation in various development sectors, adding that Pak-China friendship was immortal and peoples of both the countries had great love for each other. He said Norinco International and thePunjab government could jointly start the Mass Transit Project.

Mr Shahbaz lauded the cooperation of China in various sectors in Punjab and added that an agreement of provision of CNG buses with a Chinese company had been recently signed under which CNG buses would ply in the big cities of the province and the project had been started from the provincial metropolis. Similarly, an agreement of BT Cotton Technology had been signed with another Chinese company, he said, adding thatChina was also cooperating with the government in different sectors, including Heavy Mechanical Complex, and his government wanted China to come forward in the Mass Transit Project and review to start this important joint venture.

The chief minister saidChina had made great progress in various sectors in a very short span of time and Pakistan wanted to benefit from Chinese progress and its latest technology.

He said that he had witnessed metro train during his recent visit toIran and he wanted to start such an important project as soon as possible. He said a joint committee could be constituted which could be helpful for furthering the project after holding discussions about it. He said Pakistan is a developing country and its resources were limited, therefore, the mass transit project should be completed as a low cost masterpiece by remaining within limited resources. He said mass transit project would prove to be a milestone with regard to development of the province and provision of better travelling facilities to the citizens.

It was agreed during the meeting that Chinese company, Norinco International, andPunjab government could start the Mass Transit Project as a joint venture.

Head of the delegation, Mr Hu Farong said the chief minister had done a lot of work on the Mass Transit Project and they would soon present a course of action in this regard. He agreed that a joint committee could also be constituted to start the project jointly. Earlier, Transport secretary gave a detailed briefing regarding various aspects of the Mass Transit Project and site visits.The Industries secretary and Punjab Investment Board deputy chairman were also present.Those who met the chief minister included Mr Sun Wankqi, the deputy general manager Engineering Department of Norinco Company, Ms Cui Dongjian, project manager, International Engineering, representative of Norinco Business in Islamabad Mr Yin Lujon, Chief Executive Officer of Fecto Technologies, Pakistan, Muhammad Yasin, Senior Manager Business Development Fecto Technologies Pakistan Lt Col (R) Sohail Ahmad, Business Development Senior Manager Capt (R) Shahnawaz and Consultant Mazhar Iqbal.

Karachi Circular Railway Approved

Big news for Karachi ...........................I hope this project is really materialzied.

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The Executive Committee of the National Economic Council (ECNEC) approved on Thursday 20 projects – valued at Rs 259.4 billion with a foreign exchange component of Rs 149 billion – including the Rs 128.5 revival of the billion Karachi circular railway as a modern commuter system.

http://www.youtube.com/watch?v=C_v-V8d_TSM&eurl=http%3A%2F%2Fwww%2Edawnnews%2Etv%2Fwps%2Fwcm%2Fconnect%2Fdawn%2Dcontent%2Dlibrary%2Fdawn%2Fnews%2Fpakistan%2Fmetropolitan%2F09%2Dgreen%2Dsignal%2Dfor%2Dkarachi%2Dcircular&feature=player_embedded#t=54

Briefing the media after the meeting, Information Minister Qamar Zaman Kaira said the ECNEC, presided over by the Finance Minister, approved the Karachi Circular Railways project, but also decided to have a third party evaluation of Rs 128.60 billion project to ensure transparency in utilisation of funds. The Minister said similar projects would also be initiated in other big cities to facilitate the people.