Pakistan Commits to Expedite Bidding Process for Orange Metro Line Train Project within CPEC

Pakistan has notified China of the impending completion of the Operation and Maintenance (O&M) contract bidding process for the Orange Line Project by the end of the current month. This development has raised hopes that the long-anticipated project will soon be operational.

Official sources have confirmed that the Joint Cooperation Committee (JCC) within the China Pakistan Economic Corridor (CPEC) has expressed satisfaction with the progress of the Lahore "Orange Line" project. Pakistan has successfully addressed issues related to power supply, water supply, and drainage to a significant extent, as conveyed to the Chinese side.

The official stated, "Pakistan has informed the Chinese side that the O&M contract bidding process will conclude by November 30, 2019." The JCC has also expressed contentment with the progress of two major projects, including the inauguration of the Multan-Sukkur Motorway (M-5) on November 5, 2019.

Regarding the KKH II project, both parties have agreed to expedite the opening of the Havellian-Manshera section (39 km). Pakistan has assured that the issue of the remaining design fee will be resolved promptly, and the O&M contract will be in place before the inauguration.

The JCC has similarly expressed satisfaction with the advancements made in the East Bay Expressway project. Pakistan has conveyed that the process of sales tax exemption is underway and will be resolved within two months by the Gwadar Port Authority (GPA) and the Government of Balochistan (GoB). Land-related issues are also being addressed, and the inclusion of three bridges has received approval from the ECNEC on October 2, 2019.

Regarding the New Gwadar International Airport Project, the Chinese side has expressed appreciation for the Pakistani government's support, including tax and duties exemptions during the import stage, and the necessary import account and certificate. The Balochistan provincial cabinet has issued an official minute to approve the tax exemption for the Balochistan Infrastructure Development Cess (1% BIDC), with the official exemption letter from the Balochistan Revenue Authority (BRA) expected within a week.

The matter of tax exemptions for local equipment, machinery, material procurement, and daily necessities of Chinese staff will be taken up with the Federal Board of Revenue (FBR). While the Pakistani side has agreed to resolve issues related to construction power, water, and telecommunication connections, these matters are still in progress.

The JCC has expressed satisfaction with the progress of the ML-1 project. Pakistan has submitted the umbrella PC-1 of the project to the Planning Commission and expects expedited approval. Bidding documents are also in progress and are set to be finalized by December 15, 2019. Pakistan has proposed considering RMB financing for the project.

For the three mass transit projects in Karachi, Quetta, and Peshawar, both sides have agreed to proceed based on each project's readiness. The financing request for the Karachi Circular Railway project will be submitted to the Chinese side shortly, while Quetta Mass Transit and Greater Peshawar Mass Transit will be considered in the next JWG meeting after PC-I approval.

The DI Khan-Zhob highway project will be given priority, with Pakistan requesting the Chinese side to consider signing a framework agreement for its commencement in 2020, pending internal consultations by the Chinese side.

A joint technical working group at the government-to-government (G to G) level has been proposed by Pakistan to prepare a proposal for the re-alignment of the Thakot-Raikot section of KKH, which the Chinese side has agreed to consider in the next JWG meeting.

The discussion of projects such as Gilgit-Shandoor-Chitral (359 km), Mirpur-Muzaffarabad-Mansehra (MMM) (200 km), and Nokundi-Mashkel-Panjgur Road (290 km) is planned for the 8th JWG on Transport Infrastructure after PC-Is receive approval.

Both sides expressed satisfaction with the progress of the Five-Year Action Plan for Technical Cooperation on Highway (2018-2022) and intend to hold an annual meeting in Pakistan in the first quarter of 2020. Pakistan has prepared a concept paper outlining all projects in the Action Plan and their financial implications for submission to the Chinese Embassy to formally apply for foreign aid from the Chinese government in the first quarter of 2020.

Finally, both sides have agreed to the all-weather opening of the Khunjerab section of the KKH and plan to propose new projects, including Swat Express Way Phase-II and Peshawar DI Khan Motorway, in the next JWG meeting after PC-I approvals.