To complete the remaining work on the Bus Rapid Transit project in Peshawar, the Khyber Pakhtunkhwa (KP) government has decided to seek a 1-year extension from the Asian Development Bank (ADB) in the ‘utilization period’ of the loan.
KP’s cabinet has already given assent to the summary forwarded by the Peshawar Development Authority (PDA), seeking an extension of ‘loan closure’ to complete work on 2 bus depots and other parts of the project.
According to the summary, ADB had pledged $335 million for BRT Peshawar under a loan agreement inked on 12 September 2017. Section 3.04 of Article III of the agreement states that the closing date shall be 31 December 2021 or such other as may be agreed upon between the KP government and ADB.
However, work on the project has been delayed due to the extension of the corridor, revision of construction drawings, shifting the utilities, increase in the scope of the work, and contractor fault.
“Therefore, it is recommended to seek a 1-year extension in the loan closure date considering the wider benefits and utilization of the loan proceeds in full,” the summary concluded.
Speaking in this regard, DG PDA Ammara Khan said that extension in the loan utilization period is imperative because the loan closure deadline for the BRT is expiring on 31 December 2021 and the work on the project is still pending.
The remaining work of the BRT Peshawar will be completed in June next year, well before 31 December 2022, and is estimated to cost around Rs. 3 billion. It includes the completion of bus depots in Hayatabad and Dabgri, construction of drains, and carpeting on different parts of the corridor.
She added that ADB allows hiring sub-contractors for the completion of the remaining work of a project and PDA has already hired the sub-contractors to complete the remaining work.
Although BRT Peshawar became operational in August last year after a series of missed deadlines, 2 major bus depots are still under construction. TransPeshawar, the operator of the Peshawar BRT, is waiting for the completion of the depots to place an order for the remaining 60 buses of the project.
