Pakistan and China will sign new framework agreement for up-gradation and rehabilitation of mainline-1 (ML-1) of Pakistan Railways during the upcoming Joint Co-operation Committee meeting (JCC) to be held in Beijing (China). Federal Minister for Pakistan Railways Khawaja Saad Rafique on Tuesday left for China to participate in the 6th JCC meeting, scheduled for December 29. This was confirmed by Railway's spokesperson to Business Recorder .
According to senior officials framework agreement for up-gradation and rehabilitation of Karachi-Lahore portion and Taxila-Havelian (including construction of new Dryport near Havelian) portion of Mainline-1 (ML-1) was prepared by Ministry of Railways. The Ministry obtained input from all relevant ministries ie Finance, Planning and Economic Affairs Division and vetted from Law and Justice Division.
The new framework agreement was later submitted to the cabinet for approval. After approval of the cabinet, the agreement will be shared with the Chinese side for negotiations and possible signing. However officials claimed that Pakistan Railways and the Chinese have already agreed on the new framework agreement for up-gradation and rehabilitation of ML-1. Railways Minister announced that train speed will be increased to 160 km/h after up-gradation and rehabilitation of Peshawar-Karachi ML-1.
Sources revealed that total cost of the ML-1 project is estimated at over $11 billion out of which China is expected to give $8.7 billion loan. Railway Minister recently stated that $3.78 billion has been earmarked for Pakistan Railways under the CPEC for the first phase which is insufficient to meet its total requirement and upgrade the whole system. However, according to officials the amount is expected to increase to $8.7 billion after the approval of new framework agreement.
For Peshawar-Lahore portion of ML-1, Railways Ministry is engaged with Asian Development Bank (ADB) for financing the project. The Ministry is negotiating $2.5 billion from ADB for the Peshawar-Lahore section of the ML-I with the scheduled completion date of 2021.