ProPropertyNewsPeshawar BRT Service at Risk of Suspension Due to Payment Dispute

Peshawar BRT Service at Risk of Suspension Due to Payment Dispute

PESHAWAR: The ongoing dispute between the provincial government and the contractors of the Peshawar Bus Rapid Transit (BRT) service over nonpayment of dues may lead to the suspension of the bus service starting tomorrow (Wednesday).

In response to the situation, the board of directors of TransPeshawar, the government-owned company responsible for operating the mass transit system, is scheduled to convene a meeting today (Tuesday) to address the payment dispute.

Additionally, the provincial governor, Haji Ghulam Ali, will also chair a meeting to discuss the issue.

In a letter dated June 3, Daewoo Pakistan, the contractor responsible for operating 244 buses in the BRT fleet, informed the transport and mass transit secretary that an outstanding payment of Rs. 754 million had been delayed for the past 3-4 months.

The letter noted that despite the government-owned company, TransPeshawar has sufficient funds available to settle the dues.

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The delay in payment has hurt the operational expenses of the BRT service, including the procurement of diesel, lubricants, electricity-related parts, and employee salaries.

The letter further stated that if the overdue payment of Rs. 754 million was not released by Monday, the contractor would be compelled to suspend the BRT Peshawar operations starting from Wednesday, June 7.

Furthermore, the Asian Development Bank and the French Development Agency, major lenders of the Peshawar BRT project, have urged the KP government to promptly resolve the payment issue with the contractors.

They warned that failure to address the matter would have serious consequences for ongoing projects, future loans, and the partnership for the province’s development.

In response to the escalating situation, the transport department appointed an acting chief executive officer for TransPeshawar, as the CEO position had been vacant for two months.

This move aims to address the management issues and prevent the closure of the BRT service.

While Arshad Khan Afridi, managing director of the KP Urban Mobility Authority, has been assigned the additional charge of CEO. The appointment will be presented before the TransPeshawar board today (Tuesday).

Source: DAWN

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