KARACHI: The Yellow Line project, a 26.5-kilometre-long line from Landhi to New M.A. Jinnah road is experiencing difficulties after the Chinese company involved in building crucial parts of the mass transit project has been unable to arrange funds from financial institutions as per the agreement, it has been reported.
The project has an estimated cost of Rs14.4b with 104 new buses to become functional on the route. However, Sindh Transport Minister Nasir Shah has confirmed to media sources that the government is determined to undertake the project and is willing to relaunch the project if the existing contractor is unable to meet the requirements of the agreement.
The minister went on to add that as per the agreed contract, the China Urban Elected Company was assigned the contract in September 2016 for Yellow Line. As agreed, the Sindh government would share 14pc of the total cost and the Chinese company would share 16pc. The remaining 70pc of the cost would be met through funding from Chinese financial institutions, which has not been done as yet.
He added that the provincial government has sent a reminder to the company so that the project can be initiated in a timely manner in July. He further revealed that it is a bleak possibility that the work can be initiated on the project as per the schedule. However, the contracted company has been clarified that the deadline for start of work can be extended only by a couple of months. If unable to initiate the project as agreed, the project would have to be retendered, he added.
However, arrangements and all formalities regarding the launch of the Red Line project  from Malir Cantt to Regal Chowk via Safoora Goth and University Road with the Asian Development Bank  (ADB) have been completed, Shah revealed, further adding that the  27-km-long Red Line is expected to be launched in July at an estimated cost of Rs19bn.
