40th PPP policy board meeting held: Yellow Line BRTS, other projects launched

KARACHI: The 40th Public Private Partnership (PPP) Policy Board meeting Thursday was held under the chairmanship of Sindh Minister Syed Murad Ali Shah and decided to launch a number of important projects on PPP Mode including supply and operations of buses for Yellow Line BRTS, establishment of oil palm Nursery & Tissue Culture Laboratory, financial close of on-going Ghotki-Kandhkot Bridge, construction of Tando Allahyar Bypass and drainage system at Tando Jam and development of Rani Bagh, Hyderabad Project.

The meeting was attended by Provincial Ministers, Dr Azra Pechuho, Ismail Rahu, Sharjeel Memon, Sajid Jokhio, Murtaza Wahab, Syed Qasim Naveed, Ghulam Qadir Chandio, Chief Secretary Sohail Rajput, Chairman P&D Hassan Naqvi, VC NED Dr. Sarosh Lodhi, Nasir Brohi, and concerned secretaries.

Sindh Minister for Transport Sharjeel Memon told the CM that with the collaboration of the Federal and Sindh Governments, a comprehensive solution to Karachi’s urban mobility problem was under way by implementing a Bus Rapid Transit System (BRTS), as planned under the Karachi Urban Transport Master Plan (KUTMP) of 2030.

He added that in order to implement KUTMP, the transport department conceived a project which included the supply and operations of buses for Yellow Line BRTS under a PPP contract with a concession period of 10 years.

According to the minister of transport, the private operators would finance, procure, supply, operate, and maintain various systems such as bus fleets, Intelligent Transport Systems, fare collection, depot equipment, etc, and provide related services.

The meeting was told that the World Bank would provide 50 percent of the project cost – which meant the development and operation of the BRT Yellow Line Corridor- and the rest of the amount the private partner would have to arrange.

The private partners would also develop the marketing strategy to sensitize potential investors’ participation in the bidding process and assist the SMTA during procurement.

The PPP Policy Board accorded post facto approval to the concept of the project as well as for initiating the procurement process to carry out feasibility studies and transaction advisory services in relation to the supply and operation of buses for the Yellow Line BRT Project.

Provincial Minister for Environment & Climate Change Ismail Rahu told the meeting that Pakistan annually imported 4.5 million tons of edible oil worth $5 billion, the second highest import bill after petroleum products.

He added that Sindh was naturally blessed with a rich coastal belt that had tremendous potential to integrate agricultural crops including coconut and oil palm.

According to Rahu, the oil palm tree starts bearing fruit after three years of plantation, while it fully matures after seven years of plantation. It has a life span of 25 to 30 years under intensive management operations.

The Sindh Coastal Development Authority (SCDA) initiated a pilot project in 2016-17 namely “Palm oil production in the coastal belt of Sindh,” Ismail Rahu said and added the project successfully undertook plantation of oil palm trees in an area of 30 acres at Kathore Forest and established an oil extraction mill with the capacity of two tons oil extraction per day.

Under this project, all maturing oil palm trees yielded fruit, and oil was extracted which was duly acknowledged by independent organisations.

The Sindh Cabinet approved the transfer of 3,000 acres of Forest land to the Coastal Development Authority (SCDA) at Kathore & Hayat Gaho Forest for oil palm plantation and a scheme “Establishment of Oil palm Nursery, Tissue Culture Laboratory and block plantation in the coastal belt of Sindh” has been included in ADP 2021-22.

The minister for Environment told the CM that the land had been transferred to SCDA; therefore, the department intended to initiate the project under the PPP modality.

The policy board approved the plan and gave go ahead to the department to initiate the project in PPP mode.

The meeting was told that a commercial debt was required to be raised for the project.

Given the project timelines and current market conditions, lenders have so far committed Rs19 billion, therefore the meeting approved the proposal to proceed towards finances, and the provincial government would provide Rs 5 billion as additional cost.

The PPP board approved the proposal.

The PPP Policy Board in its last meeting constituted a committee under Minister Works with the directives to review and submit recommendations on the option of the additional scope of work under the Concession Agreement for the construction of Tando Allahyar Bypass and drainage system at Tando Jam.

In order to resolve the water logging issue and provide relief to the affected area’s residents, the provincial government envisaged developing a stormwater drain, sewerage line, and a water drainage system across the Project.

The scope of the system development includes a complete drainage system from Tandojam to the disposal point; rehabilitation of the disposal point, proper drainage on both sides of the Project, elevated drainage system; capacity to accommodate the sewerage of Tandojam, and rehabilitation of road passing in Tando Jam City Area.

The PPP policy board decided to remove encroachment for the development of the drainage system and obtain NOC required from Pakistan Railways for widening and new construction of the Railway Bridge and Railway Bridge at Tando Allahyar Northern Bypass and take up the project under the Concession Agreement.

The meeting was told that the Works & Services Department intended to dualise the existing single-carriageway road connecting TM Khan to Sajawal and to ensure safe road access to commuters and betterment of transport infrastructure linkages between rural and urban economies.

It would have a 92 km length, including 81 km TMK to Sujawal and an 11km link between Mirpur Bathoro to Jati Chowk.

The road connects rich agricultural lands and serves as the shortest route for traffic from Sujawal to Hyderabad via Bulri Shah Karim.

The project was approved for funding by PPP Policy Board in its 38th meeting held on 26th October 2022.

The PPP Unit engaged a consortium of Transaction Advisors and legal Consultants who completed a technical, legal, and financial feasibility study.

The meeting approved the project and referred it to the cabinet for further approval.

Provincial Minister for Local Government Nasir Shah told the meeting that Rani Bagh was established as a botanical garden in 1861 in honour of Queen Victoria. It is in the centre of Hyderabad city.

He added that the present state of Rani Bagh made it the largest yet underutilised facility of Hyderabad, featuring a zoo, mechanical rides, an open-air theatre, and a grass lawn on its 54 acres of centrally located land.

Nasir Shah said the Local Government Department intended to explore avenues for private investment to establish a modern state-of-the-art park with a better green space having recreational and amusement facilities for citizens.

A feasibility study conducted by the consortium of consultants proposed to develop Pocket Forest to be created at different sites in Rani Bagh.

Multiplex would be located adjacent to an open-air theatre to complement its activities. An indoor amusement facility with outdoor rides is proposed to consolidate all the scattered areas.

The zoo design would be divided into the tree facilities of animal enclosures, and a walk-in free-flight bird aviary.

Open-air mechanized thrill rides would feature in Fun Land. Vendors would be invited to install a variety of rides for different age groups.

An indoor facility of the auditorium is proposed to provide areas for large meetings, presentations, and performances which could be used throughout the year.

The boating lake would be redesigned along with its scale and connection to the rest of the park to make it a viable feature.

Carnival Pavilion would provide the community with an expression of culture that encapsulates performance, music, pageantry etc The PPP board gave go ahead to the local government to start the project.

Copyright Business Recorder, 2023