Govt decides to set up ML-1 Authority

Aftab Ahmed

Islamabad: The government has decided to set up ML-1 authority to execute Pakistan Railways’ Mainline-I Project – the China Pakistan Economic Corridor (CPEC).

Sources told Newztodays.com that Prime Minister Imran Khan had approved it under the restructuring plan of Pakistan Railways.

They said that appointing a chief executive officer (CEO) of ML-1 Authority, has started.

‘Setting up ML-1 authority shows the commitment of Pakistan towards ML-1 project in Railways that is an only project being started with the help of China under CPEC, an official said adding that Pakistan railways had been suffering huge losses and involvement of China in this mega project would help take railways out of losses.

Pakistan Railways’ Mainline-I Project – the lone strategic project of the China Pakistan Economic Corridor (CPEC) – had been cleared by the government at the cost of $7.2 billion.

Pakistan and China have declared this mega railway line project a strategic one.

The World Bank linked the project’s success in bringing governance reforms in the railways. However, the Bank warns the project’s debt servicing is not sustainable.

Earlier, the Central Development Working Party (CDWP) had recommended the US$7.2 billion Mainline-I (ML-1) project to the Executive Committee of the National Economic Council (Ecnec) for further approval.

Pakistan gives high priority to the ML-1 project due to its strategic importance. The CDWP’s clearance will also pave the way for its inauguration by the Chinese president’s upcoming visit to Pakistan.

The ML-I project includes the dualization and upgrading of a 1,872 km railway track. It will start from Peshawar to Karachi. This is a big milestone for the second phase of CPEC. Lt Gen (retd) Asim Saleem Bajwa, chairman of the CPEC Authority tweeted this.

The Pakistan Railways had proposed construction of the project at a cost of $9.2 billion. But the Ministry of Planning’s transport and communication wing had reduced the cost by $2 billion without disturbing the construction cost.

As per standard methodology approved for CPEC projects, the negotiations for financing arrangements from Chinese financial institutions start only after the government approved Pakistan’s project. At the same time, a commercial contract signed between employer and contractor.

For ML-I, negotiations for finalizing the loan’s terms already underway. The financing committees of the two sides already formed.

Once completed, the speed of passenger trains will increase from 65/110 km/h to 160 km/h. The freight trains’ speed will also increase to 120km/h from 80 kilometers per hour.

The package-1 of ML-I will complete between January 2021 to December 2024. It will cover the construction of a kilometers-long track between Peshawar, Rawalpindi, and Lahore.

Package-II will complete from January 2022 to December 2026. It will upgrade the 521km long track from Lahore to Hyderabad as well. Similarly, package-III will upgrade the 740km track of Rawalpindi-Peshawar and Hyderabad-Multan.