Cost of ML-1 project may exceed $8bn, PAC panel told

The cost of Main Railway Line (ML-1) project under China-Pakistan Economic Corridor (CPEC) is likely to cross $ 8 billion and if the project is not started within next three months, it will have serious implications for Pakistan Railways.

Federal Secretary Ministry of Railways Sikandar Sultan Raja briefing a subcommittee of the Public Accounts Committee (PAC) met under the chairpersonship of Senator Sherry Rehman here on Wednesday, said that the government is to request China to finance $9 billion Main Railway Line (ML-1) and other road and infrastructure related projects under the CPEC.

He said that the ML-1 project under the CPEC is on advanced stage with completion of first phase feasibility study and the Ministry of Railways has submitted PC-1 of the project with the Ministry of Planning and Development for approval. He said that after getting approval of the PC-1 from the Ministry of Planning and Development, the government will deliberate with Chinese authorities for financing the project which is of critical importance for Pakistan as well as China.

Raja said that in case the working on ML-1 is delayed, it will have serious implications for Pakistan Railways, adding that cost of the project is also likely to go up from the estimated cost.

Responding to a question asked by Senator Mushahid Hussain Sayed regarding getting loans in Chinese currency to complete ML-1 project, the secretary railways said that the Ministry of Economic Affairs will be in a better position to give answer of such questions.

The convener committee directed the railways officials to give a detailed briefing on the ML-1 project to the panel. Answering to questions regarding increasing number of train accidents, the secretary said that the Pakistan Railways is operating on outdated tracks and infrastructure.

He said that almost all the railways tracks are in dire need of up-gradation which since long has not been done. He said that owing to outdated railways infrastructure, trains are not allowed to cross certain speed level as most of railways tracks are up to 90 years old and signals are also outdated.

He said that the government had decided to take ML-1 loan and ensure its repayment because of the limitations of Pakistan Railways.

Responding to a question, he said a project loan would not affect the country's debt-to-GDP situation because it would be completed in about five-six years and contribute also to the GDP size as well.

The committee members expressed serious concern over the standards of safety in the operational trains of Pakistan Railways and said that the incidents like Tezgam Express fire incident could be prevented, had an effective fire fighting system been put in place in the bogies of the trains.

The secretary said that as yet inspector general railways has not submitted the inquiry report of the tragic accident of Tezgam Express occurred on October 31 this year, wherein at least 70 people were burnt to death and scores other got injured.

The panel recommended the ministry to launch effective fire fighting system in all the bogies of the trains to avoid the incidents like Tezgam Express fire incident and employ at least one member of each family who lost their loved ones in this tragedy.

The panel also recommended that the Pakistan Railways should periodically revisit its policies to improve the efficiency of trains and minimize any chances of untoward incidents.