CM Sindh approves to launch BRT, intra-bus projects on PPP mode

KARACHI: Sindh Chief Minister Syed Murad Ali Shah on Thursday approved several projects of Transport and Mass Transit department including the Blue, Green and Orange Line BRT projects, and the inter-city bus project.

The chief minister was chairing the 23rd meeting of Public Private Policy board which approved the projects along with others from the finance and health departments on public-private partnership mode.

Blue Line: The Transport and Mass Transit Department (TMTD) has received an unsolicited proposal on the infrastructure component of BRT Blue Line from EA consulting consortium. The estimated cost of the project is more than Rs16 billion.

CM Sindh was told that the proposal has provided a financing option under which private equity would be 16 percent and Sindh government would provide 14 percent while there would be 70 percent loan. The board approved the project saying that in case of price escalation the provincial government would bear 50 percent cost.

Intra-City bus serrvice: The TMTD had received an unsolicited proposal for intra-city buses in the city to ply up to 2000 buses within two years on the approved routes and desired frequency of the department.

The Sindh Mass Transit Authority (SMTA) would pay a fixed kilometer charge to the operator on the basis of achieving guaranteed minimum kilometers per year per bus. CM Sindh was told that the project intends to compliment the BRT Lines and KCR by providing customers with wider option of travelling to various destinations within Karachi.

The PPP board approved hiring of transaction advisors for feasibility study of the Intra-bus service in Karachi and approved funding for the same from the project development fund (PDF).

Green and Orange Line (Bus Operation Service project): The SMTA in collaboration with the PPP unit launched Green and Orange Line bus operation service project.  The two bidders, Daewoo Express Bus Service Ltd and A consortium of Transport Pvt, were both deemed qualified. The PPP board approved signing of concessional agreement with the preferred bidder.

Regional Blood Centers (RBC) in Sukkur and Jamshoro: With development assistance through KfW-German Development Bank, construction of four state-of-the-art RBCs in Sindh was completed in 2015.

The provision of these facilities involved civil construction, supplies of medical and non-medical equipment and office accessories. Under the agreement signed with KfW, the Health department is responsible for operation and maintenance of facilities.

The health dept and KfW have agreed that the RBCs may be contracted to experienced and established private sector organization under PPP mode. In this regard a summary has been initiated for PPP policy board which has been approved.