Lodhran-Khanewal track doubling: Ecnec approves cost increase to Rs 3.678 billion

The Executive Committee of National Economic Council (Ecnec) has revised upward the cost of ''Doubling of track from Lodhran to Khanewal via Multan Cantt'' from Rs 3.297 billion to Rs 3.678 billion on the recommendations of the Ministry of Railways.
According to official documents, the project, sponsored by the Ministry of Railways, was approved by Ecnec in its meeting on September 2, 2002 at an estimated cost of Rs 3.2975 billion, including foreign exchange component (FEC) of Rs 1.1467 billion. It envisaged doubling of 121 km rail track from Lodhran to Khanewal via Multan.
The project stood completed and it was opened to traffic on March 16, 2007. By October, 2011, an expenditure of Rs 2.57852 billion had been incurred against doubling of whole section with allied works. However, following factors had necessitated upward revision of cost of the project: (i) non-lining of FEC through development partners, following approval of original PC-1 by Ecnec; (ii) increase in cost of UIC-54 rails.
Estimated cost as envisaged at the time of approval of original PC-1 was Rs 36,000 per ton against the actual cost of Rs 49,846 per ton, resulting in an increase of Rs 234.00 million; (iii) increase in cost of material for procurement of points and crossings, resulting in an increase of Rs 369.0 million; (iv) increase in market rates of labour, material and POL, etc; (v) additional scope of work for remodelling of Lodhran and Shershah yards, which was not included in the original scope.
This resulted in cost increase of Rs 330.00 million; (vi) track machines as provided in the original PC-1 could not be procured earlier due to non-lining up of FEC; (vii) the same were procured against Opec fund loan after 8 years of approval of original PC-1. Cost increase on this account was Rs 590 million; (viii) provision of 6 inches thick sub-ballast which was not provided under the original scope of work.
Cost increase was Rs 59 million; (ix) exclusion of Rs 1.120 billion out of total provision of Rs 1.205 billion for telecommunications and cost of electronic interlocking and automatic block signalling system from the original scope of work, which had now been proposed to be carried out under a separate project approved by Ecnec on February 6, 2008 at the estimated cost of Rs 10.72 billion for provision of modern signalling arrangements on Shahdara to Lodhran main line section.
However, essential scope of work for telecom and signalling system had been carried out from the balance amount of Rs 85 million; (x) preparation of estimates of engineering: equipment and offices as per actual site requirement based on prevailing market prices has resulted in increase in cost; and (xi) establishment charges worked out as per establishment provided in the original PC-1 on the basis of current pay scales for a period of 3 years, which also increased the cost.
The Ecnec was further informed that revised project at a cost of Rs 3.6785 billion, including FEC of Rs 804.5 million, was considered by the CDWP in its meeting on October 21, 2011 and the CDWP recommended it for approval of Ecnec. Ecnec considered the proposal in its meeting on November 11, 2011 and approved it on the recommendations of Planning and Development Division.