What's the rationale behind setting up medical & dental college at KU, asks PC

The Planning Commission has raised questions over the envisaged shortfall in revenue generation against annul recurring expenditure (ARE) as well as procurement of machinery/equipment on higher rate for 500-Bed Teaching Hospital and Medical & Dental College at University of Karachi.
Prime Minister's Package for Karachi, announced in Pakistan Muslim League-Nawaz (PML-N) tenure envisaged construction of a state of the art 500-bed teaching hospital on a 24 acres plot in Karachi University to serve more than 20 million population of Karachi city with tertiary medical care facilities and adjoining areas including interior of Sindh, and develop state of the art facilities for the researchers and produce strong culture of research and development (R&D).
The project was considered by the Central Development Working Party (CDWP) in March, 2018 and recommended the project at a rationalized cost to be finalized by a committee headed by Member (Social Sector) including Chief (PP & H) and Chief Health.
According to official documents regarding the discussion on the project, Chief Health of Planning Commission in the economic appraisal of the project pointed out that, a project greater than 50 million rupees worth of cost should necessarily be accompanied with a feasibility report for technical as well as civil works.
He observed that the PC-1 under consideration was more than eight billion in cost therefore it was mandatory to conduct feasibility of the project in the form of PC-II and subsequently PC-1 should be prepared based upon the results/findings of the feasibility report which should be annexed with the PC-1.
Representative of Physical Planning and Housing Section of planning commission observed that various activities of the project (technical as well as civil works) could not be ascertained in the absence of a proper feasibility study.
Chief Health also raised the questions as why the medical college and teaching hospital was being established under Karachi University when exclusive medical university like Dow University of Health Sciences existed in Karachi. Representative of Physical Planning & Housing Section asked about the approved charter for the educational facility of the medical college.
The sponsors of the project replied that establishment of the proposed medical college and teaching hospital was part of the charter and master planning of University of Karachi. Chief Health pointed out that the revenue to be generated makes only 60% of the total Annual Recurring Expenditure (ARE) of Rs. 330 million, and the sponsors thus needed to mention about the source (PSDP, ADP or any other) of the rest of 40 percent ARE in the PC-1 in order to ensure sustainability of the project.
Representative of Economic Appraisal Section commented that ARE should be segregated for hospital and college accordingly.
Chief Health observed that cost of various machinery/equipment envisaged to be procured under the project was on higher side. He referred to many items of machinery and equipment in this regard. Representative of Economic Appraisal said that basis of cost estimates should be provided in the PC-1.
Chief Health suggested that specifications of different machinery and equipment to be procured should be provided in order to ascertain suitability and price competitiveness. He also asked about Foreign Exchange Component (FEC) requirement for import of machinery and equipment under the project.
Chief Health observed that the medical college and teaching hospital would be established within the premises of University of Karachi which may affect the academic environment, therefore, sanctity of the university should be kept in mind while devising the project.