Peshawar Metro Project: Government set to approve increase in cost

ISLAMABAD: The government is all set to approve cost escalation of 38 percent for Peshawar Metro Project revising upward from Rs49 billion to Rs68 billion during the Central Development Working Party (CDWP) meeting scheduled to be held today (Wednesday).

The ban imposed by the Election Commission of Pakistan (ECP) on development funds has played havoc with the flow of project financing for donor-funded schemes, making it really hard for the economic managers to receive dollar inflows at a time when the foreign currency reserves are depleting at higher pace.

The CDWP meeting could not be held for several months that halted the process of approving donor-funded projects around last five months.

During the tenure of caretaker government and after installation of PTI-led government, no CDWP meeting could be held in over five months thus choking the flow of dollars from donors on account of approved projects both at the federal and provincial levels.

Federal Minister for Planning Khusro Bakhtiar, who has been given the charge of Deputy Chairman Planning Commission as well through issuance of an official notification, will chair the CDWP meeting in which more than 10 projects will be tabled for clearance including Peshawar Sustainable Bus Rapid Transit Corridor Project (BRT) with revised estimated cost of Rs67.9 billion.

According to working paper of PC-1 of the BRT project, the modified PC-1 of the project envisages construction of 27.373 km dedicated, free BRT corridor out of which 11.853 km will be at grade and 12.266 km elevated.

On the request of Khyber Pakhtunkhwa government, the ADB agreed to extend loan (85% of total cost) and a comprehensive feasibility study was conducted from January 2016 to December, 2016 on corridor, which runs from Chamkani to Hayatabad and the same was recommended to be built as the first BRT Corridor in Peshawar City.

Background of Project: The original project was approved by the Ecnec in its meeting held on 10.07.20 at the total cost of Rs49.3 billion including ADB loan FEC of Rs41.881 billion.

The revised PC-I for the project was submitted to the Ministry of Planning, Development & Reform in June 2018 at the total cost of Rs67.953 billion including FEC of Rs54.609 billion to include the loan financing of Euro 130 million being extended by AFD and to accommodate variation in the design and scope of the project.

From preliminary design phase to detailed design phase, there are generally no major deviations as is in this case which have resulted in 38 percent increase in cost from the original, said the Transport &Communication Section of the Planning Ministry said in its comment on the revised PC-I of the Peshawar Sustainable Bus Rapid Transit Corridor Project (BRT).

Despite decrease in the number of buses and reducing stations the cost of one kilometer, of ill-planned BRT, has increased from Rs1.8 billion to Rs2.3 billion, said the revised PC-I of the project.