BRIEF ON IMPLEMENTATION OF KARACHI MASS TRANSIT PROGRAM (ROADS AND RAIL BASED) A.

Private Public Partnership Based Environment Friendly Public Transport System in Karachi. The project would facilitate in providing 8000 CNG Buses in ten cities of the country (Karachi, Lahore, Faisalabad, Peshawar, Quetta, Multan, Rawalpindi, Islamabad, Gujranwala, Hyderabad and Sukkur). Out of total 8000 CNG Buses 4000 CNG Buses will be for Karachi in five years duration to reduce the environmental pollution and to control public transport problems. Project Digest: Sponsoring Agency: Executing Agency: Date of Approval: Total Cost: Mode of Financing: Date of Starting: Ministry of Environment (Originally Planning & Development Division) KMTC, CDGK 25-10-2007 Rs. 5000.00 million (Rs. 2500 million for Karachi) GOP: 100% (PSDP 2009-10 Allocation = Rs. 300 million) July 2005 (Original) 2009-10 (Tentative) Releases upto date: Expenditure upto date: Completion Date: Salient Features: o Project Debit Equity Ratio: o Interest Rate: 80:20 10% - Repayment period 5 years. 12.00 million 12.00 million June 2014

o GOP to provide upfront grant of Rs. 300,000/- per bus out of GOPs total commitment of Rs. 677,181/o Balance Rs. 377,181/- (Rs. 677,181 Rs. 300,000) will be paid by GOP to share the interest part of the loan, over the repayment period of 5 years)

Status: i. ii. iii. Administrative approval of the originally approved PC-I for Karachi (Rs. 2.500 billion) issued. The Technical Committee constituted under ACS(Dev.) on the approval of Planning Commission has been pleased to short list / pre-qualify 14 suppliers / manufacturers. A National Steering Committee (NSC) under Federal Minister for Environment established. The committer has representation of Federal Ministry and all the provinces. The NSC in 3rd meeting held on 28-10-2008 has included Sukkur as 10th city. The Federal Government (Environment Divison) has not released funds despite of repeated request of Government of Sindh. The Modified PC-I submitted by Environment Divison has been cleared by CDWP in the meeting held on 30-04-2009 with following decision: Government of Sindh may launch scheme in Karachi in line with the already approved project. Funds reflected in Federal PSDP 2009-10 Rs. 300 million and last year allocation of Rs. 500 million may be released to implement the scheme. Cash plan of Rs. 300 million submitted to Ministry of Environment on 03-08-2009.

iv. v.

B. Revival of Karachi Circular Railway (KCR) as Modern Commuter System KCR was open for traffic in two phases in the year 1964 and 1970. Over fifteen years of its operations, it gradually last its ridership and the number of trains were gradually reduced and finally it was closed for traffic in December 1999. In a meeting chaired by the Prime Minister of Pakistan on 06-12-2004 it was decided that KCR be reviewed as modern commuter system and Karachi Urban Transport Corporation (KUTC) be setup for the implementation and operation of KCR, with Pakistan Railways, Government of Sindh and City District Government Karachi as stakeholders. The project envisages construction of 43.1 Kms of KCR track in two stages Stage Stage-I Stage-II Section KCR Loop: Karachi City to NIPA (22.4 Km) KCR Loop: NIPA to Karachi City Station & along mainline: No. 2 to DCOS station (20.7 Km)

The Stage-III i.e. Airport-line Drigh Road Jinnah Airport 6.1 Kms will be taken after stabling initial operating period of 7 years for stage I & II. Project Digest is as under: Location: Sponsoring Agency: Executing Agency: Capital Cost of Project: Period of Implementation: PSDP Allocation 2009-10: Karachi Sindh. Ministry of Railways, Govt. of Pakistan. Karachi Urban Transport Corporation. USA $ 1558.8 million (Rs. 105.69 billion) 48 month (2009 to 2013) Federal PSDP: Rs. 750.0 million

Provincial PSDP: Rs. 60.0 million Source of Funding: 93.5% through STEP Loan from JICA and remaining 6.5% will be borne by KUTC as per share by each parties: Government of Pakistan : 60% Government of Sindh: 25% CDGK : 15% The salient features of the proposed project is as under:Trains will be operated at intervals of 6 minutes in down direction and 5 minutes on up direction at an average speed of 45 Km per hour. Capacity:o Per train 1,690 passengers; o Per day 6,89,000 passengers; o Level crossings (22 Nos) will be replaced by underpasses / flyover and elevated railway in some portion(s) o The stations shall be provided with computerized ticketing, automated ticket gates, vending machines and elevators. o The entire KCR will be provided with electric traction infrastructure. o KCR will have modern signaling and telecommunication equipments. o Extension to Airport (6 Km underground & elevated)

o Existing 4 stations will be relocated and 5 new stations shall be provided at the intersection of KCR by main arterial roads. o Interchange facilities will be provided at the interface of proposed city corridors with KCR. o All KCR stations will have proper access roads with bus routes. Consideration of the CDWP: The project PC-I was considered by CDWP on its meeting of 18-09-2008 and took following decision:-

i.

The Federal Government would share 60% capital cost of the project and the remaining 40% would be borne collectively by the Government of Sindh. After construction of the project, the Federal Government would not bear any operational cost / losses on KCR, if any during its operational phase. It will be the sole responsibility of the Provincial / District Government. PC-I should be recost/modified on the basis of firmed up cost estimates with item-wise details, and avoidance from unnecessary and lengthy historical background. PC-I should include a proper network plan integrating with other city corridors and feeder routes. Present and project ridership should be based on ground realities and projects viability / non viability be established accordingly. All the modality should be clear by the Ministry of Finance. The project will be reviewed comprehensively by a committee headed by the Secretary Railways, Secretary Finance, Chief Secretary, Government of Sindh, Nazim CDGK and CEO IPDF as members. The committee should develop a workable implementation and operational plan for KCR. The modified PC-1 based on the recommendations of the committee shall be submitted to the ECNEC for consideration / approval.

ii.

iii.

Chief Minister of Sindh on the decision of CDWP meeting of 18-09-2008 approached President of Pakistan on 06-12-2008 with request to issue necessary instruction to Planning Division to finalized the PC-1 and placed the matter before ECNEC. iv. The ECNEC consider the scheme on 03-09-2009 and approved.

C. Bus Rapid Transit System Based on the detailed study on Public Private Partnership Based Environment Friendly Public Transport System for Karachi (2006). ADB agreed to provide technical and

financial assistance for implement of BRTS under its 1st tranche of Mega City Sustainable Development Program at a cost of Rs. 17179 million (US $ 220.500 million ) Tor has been prepared by KMTC and agreed by the ADB, the corridors of BRT are at Annexure-II. The ADB has deferred the project therefore Government is looking for other donors. D. Light Rail Transit (LRT) An 87 Km Mass Transit network having 6 priority corridors (Annexure-I) of high travel demand was approved and notified by GOP in 1995 for LRT system. Since than GOP, GOS and CDGK have been making enormous efforts to implement Light Rail Transit System on 1st two priority corridors on Build, Operate and Transfer (BOT) basis. CDGK signed a letter of Intent (LOI) with M/S Infrastructure Development Company on 13th October, 2006 to implement priority I Corridor from Sohrab Goth to Tower for Light Rail Transit (LRT) system on BOT basis. On the request of the Bidder the validity period of LOI had been extended twice but third request was not entertained. Later on due to non-compliance of the commitments by the Bidder and Govt, LOI has been terminated on 17th March, 2008. All efforts to implement the project on corridor-I on BOT basis was not proved successful. Now the Government intends to take up the study from Corridor through Transport Department for which they are preparing a PC-II.