Islamabad, October 10, 2018 (PPI-OT): The 26th Public Private Partnership Policy Board meeting held under the chairmanship of the chief minister Syed Murad Ali Shah took important decisions for expediting the procedures of BRT, Yellow and Blue Lines, Lyrai Express ways and establishment of 50 MW power plant for K-IV project.
The meeting was attended by provincial ministers, Saeed Ghani, Imtiaz Shaikh, Nasir Shah, Cm Advisor Murtaza Wahab, MPAs Ghulam Qadir Chandio, Awais Qasir Shah, Chief Secretary Mumtaz Shah, concerned provincial secretaries and head of PPP Unit Khalid Shaikh and others.
Yellow Line: The meeting was told that the Transport and Mass Transit Department (TMTD) launched the Bus Rapid Transits System (the BRTS)-Yellow line (the Project) through International Competitive Bidding process under PPP mode.
A Chinese firm and the TMTD signed the Concession Agreement for the Yellow Line Project on 9 September 2016. The Chinese firm tried to raise financing from Chinese Banks but were unable to raise the financing from China. The project attracted delays. The PPP Act requires the private party to achieve financial close within 12 months, failure of the same must be reported to the PPP Policy Board with reasons so that the Board may decide on scrapping the existing procurement process or otherwise.
The board approved termination of the existing procurement process under PPP mode. And directed the PPP unit to start bidding for the project a fresh so that it could be started.
BRT Blue Line: The solicitation process for the project was initiated as International Competitive Bidding under the PPP mode on 12th February 2018. Two bids were submitted. Both the bidders were qualified technically and the financial bids were opened.
One of the private party has been making complaints which has put the project in contravention. The board on the advice of the Chief Secretary constituted a Complainant Redressal Committee to address the grievances of the bidder consortium. The board also directed the PPP unit to take all the decisions in time so that project could be started.
Malir Expressway: The Malir Expressway Project was approved in 24th PPP Policy Board to proceed with the investor solicitation. ( Two stage bidding process)
The 1st Stage RFP was issued on 13th February 2018. The 1st stage technical bids were received from seven bidders. The technical bids were evaluated thoroughly and based on the feedback from interested parties some changes are being proposed in the project structure. They include (a) permission for using Malir River Bed. The construction material from Malir River Bed may be allowed for construction of embankment and structures – this may also result in desalting of the river which has been banned by SC Pakistan by an order.
(b) The road has been proposed three into three lanes instead of two into two lanes:
The current structure envisaged construction of two into two lanes. However, due to expected increase in traffic in future years it was suggested that the scope of project should be increased to construction of three into three lanes.
(c) The Extension of start point towards causeway on 12000 road. It was proposed that the start point of MEW should be extended backward 700 meters so that traffic from Korangi and DHA Phase VII and VIII might approach MEW directly without coming to KPT interchange.
The policy board approved amendments in the RFP for second stage bidding on the condition of honouring supreme court order.
S-III: The Greater Karachi Sewerage Plan (S-III) is being undertaken to address the sewage disposal problems. A plant of 77 MGD is already operational which can be used for the first tertiary treatment plant.
The proposed tertiary treatment plant will employ different treatment processes for different end use of the effluent. Treated water can be used for the following purposes:
(a) Greater Karachi Sewerage Plan (S-III) is being undertaken to address the sewage disposal problems.
(b) A plant of 77 MGD is already operational which can be used for the first tertiary treatment plant.
(c) The proposed tertiary treatment plant will employ different treatment processes for different end use of the effluent. Treated water can be used for the following purposes.
The policy board approved to hire transaction advisors and to carry out detailed feasibility study for the project.
Pumping Complex: The Dhabeji Pumping Complex serves as the backbone for Karachi’s water supply. It comprises of Six Pump Houses, in which four Pump Houses Majority of pump houses in the Complex are operating beyond their useful lives and require heavy financial outlay to meet O and M needs. Outlived equipment along with frequent power breakdown has reduced pumping capacity of the entire complex by 14 percent to 450 MCGD from installed capacity of 520 MCGD.
The project entails the need to replace the pumps, upgrade the complex capacity, and maintain it. It is expected that successful execution of the project would not only result in additional 70MGD water being supplied to Karachi, but will also yield additional revenue of PKR 3.6 billion per annum to KWSB. The board approved hiring of technical and financial advisors for carrying out feasibility study for upgradation and development and maintenance of the pumping complex.
50 MW Power Plant K-IV Project: In order to meet power requirement for K-IV Phase-I, 50 MW power supply is required. For smooth operation of water supply, the power complex must be able to provide uninterrupted power supply of 50 MW at competitive rates. Although detailed technical and financial feasibility is currently underway, it is expected that most of the generation will be based on thermal sources. The policy board decided to coordinate with the federal government for seeking approval for required gas allocation at domestic gas pricing structure for 50 MW K-IV project.
For more information, contact:
Chief Minister House, Sindh
Tel: +92-21-99202019(Ext: 336)