Pakistan Railways is seeking to reduce the estimated cost of $6.2 billion for up-gradation of ML-1 project, which has already been revised downward from the initial estimates of $8.2 billion. Earlier Railway Minister Sheikh Rasheed had said that the government is worried about the debt and wants to reduce the cost of up gradation of ML-1 from $8.2 Billion to almost half. After this announcement the budget was decreased to $6.2 Billion and now authorities demand further reduction in costs. Sheikh Rasheed Ahmed raised the matter with a delegation of National Railway Administration (NRA) China, which was led by Deputy Administrator NRA, An Lusheng. A detailed briefing was given on the preliminary design of up-gradation of ML-1.
During the meeting Railways minister sought reduction in interest rate for railways projects compared to other construction and infrastructure projects under the CPEC framework. Both sides agreed that the governments know the importance of CPEC and termed Pakistan Railways as backbone of CPEC.
It was decided that both sides will conduct a detailed exchange on issues relating to railway relationships for two days. The final report will be signed on December 25, 2018. The project is financially viable as assessed by the consultants where investment ratio between government of Pakistan and China shall be 15:85, as 85 percent funding on favorable terms will be provided by Chinese financial institution as per the framework agreement
The meeting was attended by M Javed Anwar, Chairman Railways, Farrukh Taimur Ghilzai, Secretary Railway Board, M Yusuf, DG Planning, Munawar Shah, DG Technical, and Maryam Gillani, DG Operations. A high-level Chinese delegation is arriving on December 19th to finalise plans about the ML-1 under the CPEC, which is being considered a project of strategic importance.
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