Pakistan, China agree to revise cost of ML-1 project

China is reported to have agreed to a revised cost of $6.6bn for Mainline-1 (ML-1) — the 1,872km Karachi-Peshawar railway track — and would submit a modified design plan for the project to Pakistan latest by October 31.

Informed sources told Dawn that Communications Secretary Khurram Agha who heads the Pakistani side of CPEC’s Joint Working Groups (JWG) of Aviation, Railways and Infrastructure and Railways Secretary Mazhar Ali Shah would travel to Beijing at the weekend to attend the JWG meeting on Monday for finalisation of the cost estimated and associated matters.

Formal announcement for the agreement is expected when caretaker prime minister Anwaarul Haq Kakar visits China on October 18 to attend annual events relating to One-Belt and Road Initiative. The sources said ML-1 costs were estimated at around $9.8bn previously but the Chinese side had shown some flexibility and some design changes had helped reduced costs and some other portions of the project would be developed by the Pakistani side itself in due course.

During the upcoming visit of PM Kakar, the two sides are also expected to take up four proposed projects for implementation that had been delayed between 2018 and 2022. Formal negotiations on the four projects including Mirpur-Muzaffarabad-Mansehra Motorway, Zhob-Dera Ismail Khan Motorway and Babusar Top would also be held during the JWG meetings next week.

Informed sources said the then prime minister Shehbaz Sharif had persuaded the Chinese leadership for revival of these projects last year as the latter also had agreed to fast-track processing of ML-1 project. However, since no significant progress could be achieved since then, these projects would now be processed through the Special Investment Facilitation Committee (SIFC) — a civil-military forum on investment — and would be taken to maturity stage by the caretaker government.

The developments were discussed at a meeting held on Friday to review work on CPEC projects. An official statement said caretaker minister for planning and development Mohammad Sami Saeed, who presided over the meeting, asked all the ministries and divisions “to expedite the China-Pakistan Economic Corridor (CPEC) projects”.

The minister was apprised about progress on CPEC projects, particularly since July when the 12th JCC meeting was held. Representatives of various ministries and divisions gave detailed briefings about work on projects in energy, infrastructure, IT sectors, Gwadar international airport, special economic zones (SEZs) and other key areas.

In the early harvest projects of CPEC, six mega infrastructure projects including Havelian-Thakot section of KKH, Multan-Sukkur (M-5) Motorway, Hakla-D.I.Khan Motorway, Optical Fibre Cable, Eastbay Expressway & Orange Line Metro Train, were completed. Also, work on different sections on the western alignment of CPEC is under implementation, which is expected to be completed by next year.

The meeting was informed that the JWG on infrastructure would meet next week to review the projects.

The minister asked the relevant ministry to expedite work on Rashakai, Dhabeji, Moqpondass and Bostan special economic zones; Allama Iqbal Industrial City; ICT Model Industrial Zone; Industrial Park on Pakistan Steel Mills land; Mirpur Industrial Zone; Mohmand Marble City and special economic zone.

Also at the meeting, a briefing was given on the upcoming Belt and Road Forum to be held in China.