The Orange Line: a new era

 
December 24, 2015

As the signing of the loan agreement between the government of Punjab and the EXIM Bank of China took place on December 21 for the construction of the Orange Line Metro Train Project, I was overwhelmed by emotion. The project will usher in the most modern transport system by revolutionising the way people travel and providing them with a state of the art, smoother, safer, faster and cleaner mode of transportation.

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This is a turning point in Pakistan’s history. There is no denying the fact that both China and Pakistan have been great friends for the past 68 years. However, the last two and half years have been unprecedented in terms of economic cooperation between both countries. Our bilateral relationship in the last six decades has been constant, whereas the present phenomenal level of economic cooperation in last two and half years is a variable.

The Orange Line Train Project is Pakistan’s first mass rapid transit train system. Like many firsts, the credit for starting this project goes to the Punjab government. It is yet another feather in the cap of the government of Prime Minister Nawaz Sharif whose vision of development is at the heart of public welfare policies being implemented by Punjab.

Besides being a show of love from the Chinese people for the people of Pakistan, this project is an expression of trust in the leadership of Prime Minister Nawaz Sharif, confidence in his solid economic vision and affirmation of his transparent conduct of government.

Yet again China has proved itself to be a sincere friend. It is not just the Orange Line project, but the whole gamut of bilateral relations including the CPEC of $46 billion that represents the friendship between the two countries.

The inauguration of the CPEC by President Xi Jinping has added depth to this exemplary relationship. I am proud to say that our bilateral relations are being taken to a new level of strategic engagement, thanks to the personal efforts of President Xi and Prime Minister Nawaz Sharif.

Out of $46 billion under the CPEC, $36 billion will go into energy sector development. This amount is pure investment from the Chinese companies.

China could have chosen any other country with better and more conducive business environment but it chose Pakistan despite our challenges. This gives you an idea of the serious commitment of the Chinese leadership towards Pakistan.

Both President Xi Jinping and Premier Li Keqiang described the Lahore Orange Line Metro Train as a gift from China for the people of Pakistan. This project will be a living symbol of the ever-lasting and ever-expanding friendship between China and Pakistan.

The Lahore Orange Line is the biggest ever project launched by the Punjab government in terms of cost. It will prove to be a real game changer for the people of Lahore and Punjab who will experience a comfortable, secure and economical travelling facility. Initially, 250,000 people will benefit from this facility on a daily basis and the capacity will go up to 500,000 passengers by 2025.

For the first time ever, the Chinese government departed from its policy and handed over the whole civil works of the project to the Punjab government under the government-to-government mode of cooperation.

What does this mean? It means that China has reposed trust in our construction companies, in Nespak as a consultant, and in our abilities. It means that it will generate indigenous employment. It means that it will give us an opportunity to acquire modern techniques and develop our capacity.

I would also like to thank the EXIM Bank of China for giving soft loans to the Punjab government for this project. The loans will be payable in a span of 20 years. The bank has given a grace period of seven years after which repayment will start.

It is also unprecedented that it is for the first time that tendering took place in the government-to-government mode of financing. CR-NORINCO, the lowest bidder, quoted a project cost of $2.139 billion. We negotiated with the contractor to bring the cost down. In the process, we were able to secure a saving of more than $600 million. With complete consensus, we settled on $1.47 billion as the project cost.

I say this with all humility but with a sense of pride that my government has introduced a new culture of transparency and efficiency in conception and execution of our development projects. While negotiating project costs, we have made efforts to extract as many concessions from the contractors as possible.

In terms of saving on travel time and vehicle operating costs, the project will achieve a saving of Rs14.9 billion in the first five years of operation and Rs39.38 billion on annual average over a period of 30 years. Besides reducing traffic congestion, the end to end travel time will be 45 minutes only compared to the 2.5 hours spent at present while travelling on this route.

It was in February 2014 that President Xi Jinping and Premier Li announced this great gift for the people of Pakistan. The Framework Agreement was signed in May 2014. However, the commercial contract could be inked in April 2015. The chief reason for the delay in the start of construction work on the project lies in the dharna politics, which almost suspended construction activity for a year.

In today’s world, connectivity increases economic activity. All modes of establishing greater networking do not just reduce physical distances. They also bring hearts together. It is our resolve to complete the project with utmost honesty, dedication and commitment. Though the construction period is 27 months, we have been assured that it will be completed in 24 months.

The media is certainly justified in flagging issues of public importance but I would request it to discourage all those who want to delay and hinder the process of development. We have already wasted a lot of time in the last 68 years. What we are trying to do now is compensate for the lost time. This Orange Line project will be followed by many such Blue and Green Lines throughout the province.

In the end, I would like to express my deepest gratitude to President Xi Jinping, Premier Li Keqiang and the people of China for their cooperation. I would also like to thank the EXIM Bank for providing concessional loans and CR-NORINCO, the contractor of the project.

This is excerpted from Chief Minister Punjab Muhammad Shahbaz Sharif’s speech delivered on the occasion of the loan-signing ceremony of the Lahore Orange Line Metro Train Project.

The writer is the chief minister of Punjab.

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