KARACHI: 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 Line, Lyrai Expressway projects and the establishment of 50 MW power plant for K-IV project.
The meeting was attended by provincial ministers Saeed Ghani, Imtiaz Shaikh, Nasir Shah, CM’s Advisor Murtaza Wahab, MPAs Ghulam Qadir Chandio, Awais Qasir Shah, Chief Secretary Mumtaz Shah, concerned provincial secretaries and PPP Unit head Khalid Shaikh and others.
Regarding the Yellow Line, the meeting was told that the Transport & Mass Transit Department (TMTD) launched the Bus Rapid Transit System (BRTS) Yellow Line through an international competitive bidding process under PPP mode.
A Chinese firm and the TMTD had signed the concession agreement for the Yellow Line project on September 9, 2016. The Chinese firm tried to raise financing from Chinese banks but was unable to do so and the project was delayed. The PPP Act requires the private party to achieve financial closing within 12 months and the 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 the termination of the existing procurement process under PPP mode and directed the PPP unit to start bidding for the project so that it could be restarted.
Regarding the Blue Line, the meeting was told that the solicitation process for the project was initiated as international competitive bidding under the PPP mode was held on February 12, 2018. Two bids were submitted. Both the bidders were qualified technically and the financial bids were opened. One private party had been making complaints, leading to the project being put 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.
The meeting was also briefed about the Malir Expressway project which was approved in the 24th PPP Policy Board to proceed with the investor solicitation.
Regarding the 50 MW Power Plant K-IV project, the meeting was told that in order to meet the 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 an 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.