A briefing was also given to the Senate Standing Committee on the Keti Bundar project. During the briefing on Quetta Mass Transit project, an official of Planning & Development Department Balochistan told the committee that estimated cost the of the project is $687.22 million excluding land acquisition, external power supply, GST, income tax and customs duties. He said that the project is under China-Pakistan Economic Corridor (CPEC) and 85 percent of the amount will be borrowed from Chinese Policy Bank. He said that loan investment recovery period is 25 years.
He said that preliminary agreement was signed between the government of Balochistan and the China Communication Construction Company. However, the framework agreement has not yet been signed, he said, adding that the government of Balochistan is also planning to conduct a feasibility to explore the option of constructing a road along the track to run buses. He said the financial economic rate of return is 2.5 percent, indicating very poor profitability. He said that under this project, the passenger train would ply between Kuchlak and Spezand (48.5km). He said that the single track would be constructed from Spezand to Sariab while a double track would be constructed from Sariab to Kuchlak.
He said the project would be completed in three years and ticket price is assumed at Rs 70 per person. The committee members expressed their concern over high price of ticket and strength of passengers. The official said the government would have to give a subsidy to reduce the ticket price. He said that the Chinese company has prepared subsidy of the project but the point regarding strength of passengers is missing. "We have asked the company to prepare a feasibility study again," he said.
The official said that track already exists for rail but it is wide and it has to be reconstructed or pared accordingly. He said that there is also an issue of encroachment along the existing railway track. The committee recommended that the government of Balochistan should consult the Ministry of Railways and Ministry of Planning, Development and Reform about reconstructing track and encroachment and submit its report to the Committee.
While briefing about Keti Bundar project, Special Secretary Energy Rashad Hussain Qazi told the committee that the project would be completed by 2025. He said that Keti Bundar project has been made part of the China-Pakistan Economic Corridor (CPEC). He said that a feasibility study is under process and his department has written a letter to Navel Headquarter to get information of sensitive area. "We are awaiting the response so far," he added. The special secretary energy also told the committee that as many as 14 coal power plants would be installed by 2025 at Thar, which would generate 6,000MW electricity. He said that in the first phase, power plant would produce 1320MW electricity. He said that a railway line would also be constructed from Keti Bundar to Thar Coal.
Copyright Business Recorder, 2017