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October 11, 2018

Fresh bidding ordered for Yellow Line busway project


October 11, 2018

The Public-Private Partnership Policy Board’s 26th meeting on Wednesday decided expediting the procedures for constructing the Yellow Line and Blue Line of the bus rapid transit system, the Malir Expressway and a 50MW power plant for the K-IV project.

With Sindh Chief Minister Syed Murad Ali Shah in chair, the meeting was told that the transport & mass transit department signed a concession agreement for the Yellow Line project with a Chinese firm on September 9, 2016.

The CM was informed that the firm tried to raise funds via Chinese banks but to no avail. The Sindh Public-Private Partnership Act requires the private party to achieve financial closure within 12 months.

Failing to achieve financial closure, the situation must be reported to the policy board with valid reasons so that the board can decide if the existing procurement process needs to be scrapped.

The board approved the termination of the existing procurement process of the Yellow Line project and ordered fresh bidding for the scheme so that the project can be re-launched.

As for the Blue Line project, the solicitation process was initiated this February 12 and it received two bids. Both the bidders were technically qualified and so the financial bids were opened.

On the advice of Chief Secretary Mumtaz Shah, the policy board constituted a committee to address the grievances of the bidder consortium. The board also ordered that all decisions should be taken timely so that the project can be started.  

Malir Expressway

The Malir Expressway project was approved in the 24th policy board meeting to proceed with the investor solicitation. The request for proposal was issued this February 13.

The technical bids were received from seven bidders. They were evaluated thoroughly and, based on the feedback from the interested parties, some changes are being proposed in the project structure.

They include permission for using the Malir riverbed, construction of three-into-three lanes instead of two-into-two lanes and the extension of the starting point towards the causeway on 12000 Road.

The policy board approved the amendments for the second stage of the bidding process on the condition that the Supreme Court’s relevant orders are honoured.  

Sewerage project

The S-III Greater Karachi Sewerage Development Plan is being undertaken to address the problem of sewage disposal. A plant of 77mgd is already operating and can be used for the first tertiary treatment plant.

The proposed tertiary plant will employ different treatment processes for different end uses of the effluent. The policy board approved hiring transaction advisers and carrying out a detailed feasibility study of the project.

50MW for water scheme

To meet the electricity requirements of the K-IV Greater Karachi Bulk Water Supply Scheme’s first phase, 50MW of power supply is required. For the smooth supply of water, the power complex must be able to provide uninterrupted electricity of 50MW at competitive rates.

Although a detailed technical and financial feasibility study is under way, it is expected that most of the power generation will be based on thermal sources.

The policy board decided coordinating with the federal government to seek the approval for the required gas allocation at the domestic pricing structure for the 50MW project.  

Dhabeji Pumping Complex

The Dhabeji Pumping Complex serves as the backbone for Karachi’s water supply. It comprises six pump houses. Majority of them are operating beyond their useful lives and require heavy financial outlay to meet the operations & maintenance needs.

Outlived equipment and frequent power breakdowns have reduced the pumping capacity of the entire complex by approximately 14 per cent: from the installed capacity of 520mcgd to 450mcgd.

The project entails the need to replace the pumps, upgrade the complex capacity and maintain it. It is expected that the successful execution of the project will not only result in additional 70mgd of water supply to Karachi but also yield additional revenue of Rs3.6 billion per annum for the Karachi Water & Sewerage Board.

The board approved the hiring of technical and financial advisers for carrying out a feasibility study for the upgrade, development and maintenance of the pumping complex. The policy board meeting was attended by ministers Saeed Ghani, Imtiaz Shaikh and Nasir Shah, CM’s adviser Murtaza Wahab, MPAs Ghulam Qadir Chandio and Awais Qasir Shah, relevant secretaries, Public-Private Partnership Unit head Khalid Shaikh and others.

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