Here’s Why Orange Line May Be The Most Expensive Project of its Kind Worldwide

With no date in sight in the near future for the completion of mass-transit project Orange Line Metro Train (OLMT), concerned officials have revealed that the OLMT’s cost of civil infrastructure is far less than its associated costs of rolling stock and related infrastructure. In short, the Orange Line Metro Train Project may just be one of the most expensive projects of its kind not just in Pakistan, but worldwide.

Cost Breakdown of the OLMT Project

The country’s first mass-transit train project will connect different parts of Lahore once completed.

It is being developed for $1.65 billion, the total cost of the project, that have been given under a loan by China’s Exim Bank.

According to experts, the OLMT is considered as one of the most expensive projects of its kind worldwide due to the following observations

For the OLMT, costs associated with its rolling stock, mechanical and electrical infrastructure, tracks etc. have doubled when compared to the money used for the civil infrastructure component of the project. This is an alarming revelation for such a huge mega project, as its civil cost covers 2/3rd of the entire project cost.

OLMT Vs Rest of the World

Two European companies Alstom and Construcciones y Auxiliar de Ferrocarriles have signed a deal with Barcelona Metropolitan Transport for two 12-car trains for $107 million.

The official also pointed out that the government has spent $1 billion for electrical and mechanical works, tracks and 135 coaches (27 5-car trains) from China, which accounts for over 60% of the total project cost. He believes that a similar train coach costs $1.6-1.7 million each. If we take this figure into account, the 135 coaches should  amount to no more than $220-230 million cumulatively.

If the government is paying remaining $700 million for only laying tracks, as well as the electrical, mechanical and signalling works, then questions abound. The project is being constructed through a loan that will be ultimately paid through the taxpayers’ money.

BB&J Consult’s data reveals that the non-civil costs remain near 1/3rd of the total project cost, unlike Pakistan’s OLMT, despite the higher labor wages and overhead expenditures.

As things stand, it would be a challenge for the new government to complete the project and make it sustainable.

Via Tribune

  • Now, the amount already wasted by PLM(N) kindly complete this project in favor of public & next time at lest ask the people what we want it then start the project.

    • agree , complete and Run as per international standards not on subsidized fares.

    • Dubai Metro having 49 Stations :
      Aur Wo Dubai Hai Ye Pakistan hai Waisy He Paise Nahi Hai Aur Falto K Project Main Shareef Faimly Ne Paise Laga Diye

    • Dubai Metro having 49 Stations :
      Aur Wo Dubai Hai Ye Pakistan hai Waisy He Paise Nahi Hai Aur Falto K Project Main Shareef Faimly Ne Paise Laga Diye

    • Did you saw Dubai metro infrastructure? its build quality? You cannot compare construction standard with Orange line.

    • Dubai Metro 75 KM with 49 Stations and Lahore Orange is 21 KM with 26 Stations. is it make any sense to compare?????

  • For $1.65 Billion, we can get every traveler in Lahore a Helicopter, which will be way cheaper then the expensive Orange Train.

  • Malaysian Prime Minister once said that China comes with a lot of money and says you can borrow this money. But you must think “How do i repay?”. Some countries see only the project and not the payment part of it. That’s how they lose chunk of their country. We don’t want that.

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