Pak to revive KCR with Japanese assistance

Karachi: The government of Japan will invest $872.316 million for the revival of Karachi Circular Railway (KCR) to overcome traffic problems in the metropolis.

According to sources, Japan External Trade Organisation (Jetro) commissioned by the ministry of economy, trade and industry, government of Japan would provide 100 percent funding for the project under Japanese STEP loan at 0.2 percent mark-up rate for a 40-year payback time, including a 10-year grace period.

They said Jetro, as a first parameter, will dualise KCR's 30-km loop with modern signalling and telecommunication system at a cost of $536.852 million. Further, the sources said at least two dedicated tracks along with the main line from City (Railway) Station to Drig Road Station of 14.5 kms, which would later be linked to the airport with a distance of 6-kms, at a cost of $179.464 million.

They said Karachi Urban Transport Corporation (KUTC) would be the vehicle for the implementation of the project having on its Board-Directors the senior officials of Pakistan Railway, Government of Sindh and City District Government Karachi (CDGK).

Currently, the project was under different assessment studies, such as Environmental Impact Assessment (EIA), Special Assistance for Project Formation (Saprof), led by a group of Jetro and would be completed within two to three months, said the sources adding that PC-1 for the project had also been cleared in principle. They said the government f Pakistan and Jetro were likely to sign a loan agreement by May 2009, within three to four years of which the project would be completed.