The City District Government Karachi (CDGK) has sought federal government's help to implement the Malaysian rapid transit transport system proposal.
The CDGK District Co-ordination Officer Jawed Hanif Khan, in a letter addressed to the economic affairs division secretary, requested for support to implement the project on government-to-government basis avoiding unnecessary formalities. Giving background of the proposal, the letter says that during the visit of the then-prime minister to Malaysia in October 2005, he requested necessary assistance to improve the urban transport system in Karachi.
Subsequently, the subject matter was included in the Malaysia-Pakistan Partnership Package for consideration during the visit of Malaysian Prime Minister Abdullah Bin Ahmed Al-Badawi to Pakistan in November 2006, the letter says.
As a follow-up, the Construction Industry Development Board (CIBD) of Malaysia through its Ministry of Works submitted a concept proposal on Karachi Mass Rapid Transit System for Corridor-II (13-km) from Orangi Township to Cantt. Station and Corridor-III (15.4-km) from North Karachi to Nazimabad and Site to Liaquatabad, it adds.
The letter says the mode of implementation, suggested by the CIBD include design built contract with the Government of Pakistan (GoP); development budget provision on government-to-government negotiation basis and concession agreement with certain guarantees to be provided by the GoP. The guarantees encompass sovereign, ridership, free access to ROW, land acquisition cost, fare structure and forex fluctuation protection to make the project viable and sustainable.
The Malaysian Board has also offered to submit a detailed technical and financial project proposal within six months if exclusive rights or first right of refusal to the development of either corridor is provided to them with the conditions; the GoP after three months of detailed proposal submission through an appropriate implementing agency will negotiate exclusively with the CIBD and sign an agreement with a legal entity nominated by it.
In case, if no agreement within three months, the GoP will reimburse the Malaysian government the costs of the study and all rights to the study will rest with the GoP, the letter adds.
The letter says the CDGK, in response to CIBD's concept proposal, has suggested that the project feasibility study may be undertaken first by the Malaysian government on grant basis and further modalities for implementation of the project would be worked out by both the countries subsequently.
A meeting was held on July 4, 2007 with Dr Dennis Ganendra of Minconsult with the CDGK in which it was confirmed that CIBD, on behalf of the Malaysian government, would undertake the construction of priority Corridor-V from Nagan Chowrangi to Korangi Township via Rashid Minhas Road on government-to-government based agreement.
Later, the Malaysian Ministry of Works vide a letter on July 6, 2007 informed that the Malaysian government is arranging the financing for the project against GoP's sovereign guarantee and seeking its approval, the letter informs.
The Karachi City Nazim vide his D.O. letter on August 23, 2007 requested the Ministry of Communications, GoP, to explore the possibilities of extending sovereign guarantee of the Pakistan Government to implement the project on government-to-government basis. However, the reply is still awaited, the letter adds.