Peshawar BRT Remains Unfinished and is Becoming More Expensive

Peshawar Bus Rapid Transit (BRT) project remains incomplete and is becoming more expensive with the passage of time due to the USD exchange rate volatility.

According to a recent report, the consultancy fee for the Peshawar BRT project has increased by 300% due to the recent local currency depreciation. Khyber Pukhtunkhwa (KP) government had procured the services of Mott MacDonald — a UK-based consultancy firm — for assistance in the project.

The inflation has prompted the company to hike the consultancy fee from Rs. 816 million to Rs. 2,362 million. A Peshawar Development Authority (PDA) official told The News that the service provider will continue to charge consultancy fees from the government until the project’s completion.

The anonymous source highlighted that, due to continuous delays in completion, the service provider’s rates are rising constantly. “The consultancy charges can only be raised to 15% under PPRA rules, but the BRT project is being constructed under Asian Development Bank rules,” he added.

The report adds that the project is expected to conclude by the end of this year. This implies that more operational cost hikes may be on the horizon.

Embezzlement Case

Last week, an audit report on the Peshawar Bus Rapid Transit (BRT) project uncovered embezzlement of about Rs. 50 billion. The revelation came forth via a report sent to the Asian Development Bank (ADB) by the Auditor General.

PDA has responded to the issue, stating that the Auditor General’s report is based on preliminary observations. The ‘collected responses’ will be at the relevant forum, the department added.

Peshawar BRT is Pakistan’s sole award-winning mass transit facility that has received high praise from the people. However, with the latest revelation regarding financial irregularities, its image seems to be in peril.