ISLAMABAD: Ministry of Finance (MoF) is reportedly clueless about the total cost of Karachi Circular Railway (KCR) project which comes under China-Pakistan Economic Corridor.
The KCR project requires a sovereign guarantee and the MoF is said to be ignorant about its cost, reported Business Recorder.
This matter came to the fore in a recent meeting of Cabinet Committee on CPEC which was presided over by Prime Minister Shahid Khaqan Abbasi.
Ahsan Iqbal, Minister for Planning Development and Reform apprised the committee that Sindh government had sent a modified framework agreement for KCR project.
Planning and Development Department of the Sindh government said its delegation will be visiting China to discuss details of execution of project with the Ministry of Commerce, Ministry of Transport of China and China Exim Bank.
The Planning Ministry told Cabinet Committee on CPEC to give go-ahead for modified framework agreement for KCR project to kickstart negotiations with China in this regard.
In the meeting, Secretary Railways shared worries over alignment of proposed KCR project, as it would overlap route of another critical CPEC project ML-I. She elaborated as to how KCR and ML-I right of way (ROW) would get shared.
She stressed on resolving the overlapping issue of KCR project with ML-I before entering into talks regarding framework agreement of both projects.
Secretary Finance Division said they were unaware of information regarding the cost of the project and petitioned Planning Development and Reform Division to give total estimate of KCR project in order to receive issuance of sovereign guarantee.
PM Abbasi noted KCR project would impact ML-I, as per concerns shared by Secretary Railways and instructed Planning Development and Reform Division to address worries of Ministry of Railways while negotiating the framework agreement of both projects.
