Deletion of BRT Redline project's overhead charges: Sindh government not in accord with ministry

The Sindh government didn't agree with the Ministry of Planning, Development & Reforms (MoDP&R) to delete overhead charges for construction of Karachi BRT Redline project, which would reduce the cost of the project by Rs 16 billion. The MoDP&R had proposed that deletion of overhead charges on Karachi BRT Redline project will bring down from Rs 78.384 billion to Rs 62.371 billion.
Project has been approved by Central Development Working Party (CDWP) and Ecnec recently at Rs 78.384 billion despite the observations made by MoDP&R before the meeting of two highest public sector projects approval forums.
According to official documents available with Business Recorder, the deletion of overhead charges including taxes, physical & price contingency, interest during construction, commitment charges has not been done by sponsoring agency, ie, Transport & Mass Transit Department (TMTD) and Sindh Mass Transit Authority (SMTA), Government of Sindh despite the observations of ministry on the project.
The ministry believes that with the deletion of overhead charges, the cost of the project will reduce from Rs 78.384 billion to Rs 62.371 billion, which would save Rs 16.012 billion in the total cost of the project.
The ministry observed that similar provisions were deleted for Peshawar BRT project.
The total cost of Bus Rapid Transit (BRT) Red Line project in Karachi jumped first to Rs 77.597 billion and then it was approved at the cost of Rs 78.384 billion compared to the original cost of the project, which was estimated at Rs 65.589 billion.
Karachi BRT Red Line Project has been planned to contribute to develop a sustainable urban bus transport system in metropolis with less travel time and enhanced mobility and accessibility.
The project envisages construction of BRT dedicated corridor measuring 24.2 Kms in length from Numaish to Malir Halt Depot and common corridor of 2.4 Kms from Municipal Park to Merewether Tower along M A Jinnah Road. Out of this total 26.6 Kms length of corridor, 22.45 Kms is at grade section, 1.72 is elevated and 2.43 Kms is underground section. Estimated passengers per day would be 320,000. Rigid concrete pavement has been proposed throughout the corridor length. The construction work includes eight off-corridor routes including direct and feeder services and procurement of 199 buses comprising of three types 9ms, 12ms & 18ms.
Also, provision of ITS Equipment and security systems, land acquisition and resettlement plan, relocation of utilities, however, the land acquisition for the two depot sites has not been included in the cost of instant PC-1.