Economic corridor: NRA of China prepares report on KCR and ML-1 projects

National Railway Administration (NRA) of China has prepared a report on integration, implementation and realignment of Karachi Circular Railway (KCR) and Main Line (ML-1) projects under the China-Pakistan Economic Corridor (CPEC) and submitted it to the Ministry of Transport of China for final decision.
"After finalization of the report, China would tell about the funding for the implementation of railways project as funding for ML-1 is yet to be ensured," said Federal Minister for Railways Khawaja Saad Rafique while briefing the Senate Standing Committee on Railways. The committee met with Fateh Mohammad Hassani in the chair Thursday.
The minister said that KCR was an old project designed by Japan International Cooperation Agency (JICA) and was later adopted by Karachi Mass Transit Authority. The JICA has carried out all studies, including feasibility study, which is a comprehensive document of KCR project. As a result of 6th meeting of Joint Cooperation Committee (JCC) of CPEC, KCR was included in the CPEC.
The decision of according permission of laying track of KCR along existing ML-1 (from Karachi City to Drigh Road, 14 kilometers) is subject to finalization of preliminary design of up-gradation of ML-l under the CPEC.
The committee was further informed that the land for the right of way (RoW) of remaining 29kms (falling on KCR loop) is proposed to hand over to Sindh government on mutually agreed terms and conditions. On November 23, 2017, Chinese railway companies visited Karachi and surveyed the PR up Main Line till Drigh Road. In a meeting after the survey, it was decided that NRA will come up with an engineering solution for the implementation of KCR and ML-l project.
Railways Ministry presented the report of independent evaluator for the Railways properties in Chaman measuring 6.03 acres of land, which was transferred in the name of Pakistan Telecommunication Company Limited (PTCL). As per the latest evaluation, the price of land is Rs 3.92 billion against the initial evaluation of Rs 5.25 billion. The railways minister proposed the Finance Ministry to release Rs 3.92 billion and pay the occupancy charges/interest, etc, after receiving the full payment from Etisalat. However, joint secretary finance said that ministry is ready to release the amount after the independent evaluation but could not pay occupancy charges/interest, etc. The minister informed the committee that he would discuss the matter with Finance Ministry himself.
One of the Railways properties in Chaman, measuring 6.03 acres, was transferred in the name of PTCL. Ministry of Railways has claimed an amount of Rs 13.828 billion as cost of land and arrears of occupational charges including interest from January 01, 1972 to December 31, 2011, as per following break up; cost of property/land, Rs 5.258 billion, and occupational charges including interest, Rs 8.233 billion.
Earlier, Finance Division with the approval of finance minister conveyed to Pakistan Railways and other stakeholders that the value of the properties shall be paid to them whenever the balance amount of $800 million, pending on part of Etisalat, is received to the government of Pakistan. However, later the Finance Division asked for independent evaluation of the property.
The committee also discussed the railways land under illegal occupation across the country in the light of decision of the Supreme Court of Pakistan and steps taken by the provincial governments for its vacation. The minister informed that Khyber Pakhtunkhwa and Balochistan have almost mutated railways land on its name however Sindh and Punjab have not cooperated so far. The committee decided to invite attorney general and secretary law in the next meeting and seek their guidance in implementation of the apex court verdict. The committee observed that due to land issues, it is feared that railways project may be affected negatively.