KARACHI - The 26th Public Private Partnership Policy Board meeting held under the chairmanship of Chief Minister Syed Murad Ali Shah and decided to expedite 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 Adviser 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 & 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 was 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.

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.

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&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.