LAHORE: The Chinese government has sent Pakistan�s first modern railways�

infrastructure project � Main Line-1 (ML-1) � to the Exim Bank of China for
approval of a $6 billion loan after all technical, administrative and other issues
have finally been resolved, paving the way for launching civil work on this scheme
within this year.

�The latest on the $6.8 billion ML-1 project is that a finance committee comprising
Chinese officials has sent the case related to $6 billion loan approval of the
project to Exim Bank. Since the remaining $800 million will be provided by the
government of Pakistan as equity, the total $6.8 billion will be spent on
completion of the entire rail-related infrastructure, mainly the line, fencing,
civil works etc,� Pakistan Railways Federal Secretary / Railway Board Chairman Dr
Habibur Rehman Gillani said while talking to Dawn on Tuesday.

�We appreciate our Chinese counterparts for taking the ML-1, a project to be
executed under the China-Pakistan Economic Corridor (CPEC), seriously by resolving
various issues in consultation with senior Pakistani officials concerned,� Mr
Gillani added.

The construction of ML-1 project in three phases had been approved by the Executive
Committee of National Economic Council (Ecnec) in its meeting held in August last
year. The actual cost of the project was initially $9bn, including equity amount of
the government of Pakistan. But later, it was reduced gradually to $6.8bn.

�The cost was reduced since money included / allocated earlier for train sets /
rolling stock etc was not needed during completion period of the project,� the
chairman explained. When the project will reach nearing completion, another project
proposal regarding procurement of train sets / rolling stock etc would be prepared
and approved separately, he maintained.

Mr Gillani said once the loan was approved by the Exim bank, the project would be
sent to respective Chinese ministries dealing with the railways and planning /
development related matters. This whole process would take a couple of months,
after which the ministry would be able to initiate the international bidding /
tendering process for execution of the project.

The project would have upgrade of ML-1 from Karachi to Peshawar and Taxila to
Havelian (1,872km), laying of new track with improved sub grade for 160km/per hour,
rehabilitation and construction of bridges, provision of modern signalling and
telecom systems, conversion of level crossings into underpasses/flyovers, fencing
of track, establishment of dry port near Havelian and upgrade of Walton Training
Academy (Lahore).

It will create 24,000 direct (20,000 local labour/technical experts and 4,000
Chinese experts) jobs and reduce travel time from Karachi to Lahore from 18 to 10
hours.

Published in Dawn, April 21st, 2021