Pakistan and China have decided to divide the 6.8 billion dollars’ cost mainline (ML-1) railway project into two phases, sources here said.
“The sides will sign two separate agreements for the Phase-I and II of the ML-1 railway project,” sources at the finance ministry said.
“The Phase-I agreement of 3.2 bln dollars, likely to be executed in the next month,” sources said.
Feasibility study prior to the Phase-II agreement will be held after completion of the first phase of the project, sources further said.
“In the first phase, railway line will be completed from Karachi to Hyderabad, and Hyderabad to Multan,” according to sources.
“In the second phase of the ML-I, railway track will be built from Multan to Peshawar,” sources said.
The financing terms and conditions will be finalized with the Chinese officials in the current month. “The long-term financing will be taken from China for the Phase-I of the ML-I”.
“Pakistan intending to borrow low-interest loan from China for the mainline project,” sources shared.
Pakistan was earlier negotiating with China for 6.8 billion dollars financing for the ML-I, sources said. The sides didn’t agree over a combined agreement for the whole project, ministry sources added.
The development and renovation of Karachi-Lahore-Peshawar railway track, known as ML-I project, is planned under the flagship CPEC project.
The ML-I project is based on total length of 1,872 kilometers. The PML-N government in the past had also decided to divide the project into two, because of its elevated costs and widespread work which necessitates renovation and extension of the main railway line.
