ProPropertyNewsML-1 Railway Project Cost Soars Over 100% Amidst Execution Delay

ML-1 Railway Project Cost Soars Over 100% Amidst Execution Delay

ISLAMABAD: The cost of Pakistan’s ambitious Main Line-1 (ML-1) railway project has skyrocketed by over 100% due to significant delays in its execution.

The details suggest that this surge in cost has posed challenges for the government in securing resources for the venture.

Initially conceived under the China-Pakistan Economic Corridor (CPEC) in 2016, the project was estimated to cost $6 million, with financial assurance from Beijing. However, the project’s current cost has now escalated to $13 million.

During a meeting chaired by Prime Minister Shehbaz Sharif to discuss Pakistan Railways, it was revealed that the government is facing difficulties in obtaining financial assistance for the project.

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Consequently, the prime minister directed the relevant authorities to commence the first phase of the project, from Karachi to Sukkur, using the government’s resources.

The meeting highlighted that China, which had pledged to fund the ML-1 project aimed at upgrading the railway track from Karachi to Peshawar, has not yet confirmed its financial support.

Additionally, it was mentioned that the PTI government has made modifications to the project, shifting it from the Built, Operate, and Transfer (BOT) basis to the engineering, procurement, and construction (EPC) mode.

Source: DAWN

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