1. Cities are drivers of economy whereas Public Transport is lifeline of urban life and city development. Mass Transit is neglected in a number of mega cities of developing countries, resulting in extreme congestion, long commuting times, choking air pollution and deadly traffic accidents. Prevalence of individual transport results in huge economic losses.
2. World over, governments assume the primary responsibility of solving the above problems through infrastructure development projects and urban mass transit schemes as these become the primary factors in development of national economy and maintenance of order in mega cities.
3. In order to address the ever increasing traffic and resultant congestion in Lahore, studies conducted in the 1990s by the Government of Punjab, identified the need for mass transit to meet future public transport demands and recommended Ferozepur Road as the priority corridor. Despite various attempts, no project could come on ground. Transport Department, Government of the Punjab commissioned MVA Asia Ltd to undertake a Feasibility Study of a Rapid Mass Transit System (RMTS) for Lahore in 2005-06 which covered the development of a Long Term RMTS network for Lahore and the feasibility of the priority Green Line, based on identification of potential mass transit corridors, followed by a broad assessment of patronage and engineering constraints in those corridors. The order of priority for implementing these lines was then determined based primarily on forecast passenger demand in the following order of priority:-
Green Line – Ferozepur Road/Mall Road/Ravi Road/Shahdara. (Gajju Matta To Shahdra; Completed; 27 Km length)
Orange Line – Raiwind Road/Multan Road/Macloed Road/ Railway Station/GT Road (Ali Town to Dera Gujjran ; 27.1 km Length)
Blue Line – Township/Gulberg Boulevard/Jail Road
Purple Line – Bhatti Gate/Allama Iqbal Road/Airport
4. The study conducted by MVA Asia Ltd included their recommendations on Green Line. They also undertook the Feasibility Study of the Orange Line (LRMTS) in October 2006 which was completed in 2007.
5. According to Feasibility Study, the Green line Metro Train project was estimated to cost USD 2.4 Billion. The Asian Development Bank expressed willingness to finance approximately USD 1 Billion of its cost but no loan agreement was signed. USD 1 Billion was expected to be raised through private sector financing which also did not mature and was later found non-feasible. The Government of Punjab through LTC negotiated and signed an agreement in China for Green Line project at a cost of USD 1.7 Billion on 22.04.2011. However, the project could not go through because the Sovereign Guarantee from the Federal Government was not committed.
6. The Green line project was finally executed by the Punjab Government in 2012-13 as Bus Rapid Transit System, with a total cost of USD 300 Million and is presently serving the public in a big way. Average daily ridership of Green Line on a working day is over 150, 000 Passengers per day. It is clarified that the ADB never committed any funding for Orange Line project.
7. In 2014, the seven years old feasibility study was updated by NESPAK on directions of Punjab Mass Transit Authority. NESPAK proposed following two options:
Option-1: Mall Road in cut & cover section and viaduct in other reaches.
Option-2: Viaduct in entire length of the project
8. Considering various factors like high cost involved in tunnel boring / its maintenance cost, cost of land acquisition, number of displaced/affected persons and impact on heritage buildings etc. Option-1 with 1.72 km underground and 25.4 km elevated track was adopted.
9. The alignment of Lahore Orange Line is based on rigorous traffic engineering modelling and parameters, including:
Origin-Destination Surveys (ODS)
Traffic Count Surveys (TCS)
Rider-ship Surveys (RS)
The alignment will:
Achieve maximum rider-ship
Minimize the land acquisition
Have no adverse effect on the historical buildings
10. Other salient features of Lahore Orange Line Metro Train project are as follows:
Stations = 26 (Elevated = 24; Underground = 2)
Rolling Stock = 27 Train sets (One train-set comprises of 5 cars)
Ridership = Approximately 245,000 per day (estimated for first year of operation)
Route = Ali Town to Dera Gujran
Name Of Station
Name Of Station
Yateem Khana / Bund road
Scheme Morr / Salahuddin Road
Thokar Niaz Baig
11. To initiate Orange Line Metro Train Project, an open international tender was floated on 29.01.2014 in Financing + EPC mode. Pre-bid conference was held on 18.02.2014, which was attended by representatives of 11 foreign and 5 local companies. On Bid submission date i.e. 21.04.2014 only two Chinese companies namely CR-NORINCO JV and SINORAIL JV furnished their bids.
12. In the meeting of the President of Pakistan with Chinese Premier held on 19.02.2014 in Beijing, the Chinese Premier decided to fund the Orange Line project with the condition that Chinese Enterprises will execute the project using Chinese Equipment. He also declared it as a Chinese gift to Pakistan.
13. The International Tender was cancelled on May 12, 2014. An Inter-Governmental Framework Agreement was signed on 22.05.2014 providing that Orange line shall be fully designed, constructed and supervised by Chinese Enterprises (which is a norm in all bilateral funding agreements). The Framework Agreement also inter alia required initiation of negotiations on Commercial Contract of Orange Line.
14. Under instructions of the Chief Minister, on 26.05.2014, a reference was made through EAD to the Chinese Government requesting for their concurrence that selection of Chinese Enterprise may be done through an open competitive bidding restricted to China.
15. On 30.05.2014 the Chinese Government informed that for projects using Preferential Buyer’s Credit, the China Chamber of Commerce and Import and Export of Machinery and Electronic Products (CCCME) shall provide a shortlist of Enterprises (no more than three). The Pakistani proprietor shall tender from this shortlist. In the history of China-Pakistan bilateral concessional lending, Orange Line is the first project in which tendering process was followed. It is pertinent to mention that Government to Government Agreements are exempted from the operation of PPRA Rules. On 02.06.2014 a detailed Eligibility Criteria and required evidence of bidder’s capability, experience and financial capacity was sent to the Chinese side for recommending eligible Chinese Contractors.
16. On 24.06.2014, the CCCME recommended the same companies i.e. CR-NORINCO JV and SINORAIL JV who had earlier participated in the international tender for Orange Line project. On 24.06.2014, bids were invited from these two companies. Technical bids of the bidders were opened on 18.07.2014. Financial bids of the bidders were opened on 04.08.2014 after M/s NESPAK and CCCC (A Chinese Consultant) declared them technically compliant. CR-NORINCO emerged as lowest bidder with bid price of USD 2.139 Billion. Breakup of final Contract Price is as follows:-
i. Contract Price of Civil Works= USD 531,681,818
ii. Contract Price of Consultancy Services = USD 24,000,000
iii. Contract Price of E&M Works (inclusive of 6% Withholding/Income Tax) = USD 922,500,000
iv. Sub-total (a to c) = USD 1,478,181,818
v. Contingencies (only in case of unforeseen increase in work) = USD 147,818,182
vi. Total Price = USD 1,626,000,000
The final price of USD 1,478 Million is around 661 Million dollar less than the bid price
17. Chinese side agreed to sublet Civil Works of the project to Pakistan side resulting in significant savings, which is again an unprecedented achievement. Significant economies / price reductions achieved in E&M Work’s price. Effective negotiations yielded project cost savings of approximately USD 660,818,182/- with unprecedented support of the Chinese Government and gracious flexibility shown by CR-NORINCO. Further, transparent tendering process of Civil Works carried out by LDA yielded additional saving of PKR 5.97 Billion.
18. Cost of Orange Line is quite competitive when compared with similar projects around the globe. Cost comparison of some of metros in the world on Per Km basis is as below:
a) Orange line
i) Core project cost USD 1,478 M= USD 54.50 M per Km
ii) Core cost + Contingencies USD 1626 M= USD 59.95 M per Km
b) Mumbai (Completed in 2014) – USD 60.7 M per Km (adjusted)
c) Pune (Completion in 2018) – USD 62.21 M per Km (adjusted)
d) Jaipur (Completed in 2015) – USD 64.3 M per Km (adjusted)
e) Copenhagen (Completed in 2002) – USD 69.8 M per Km in 2002 prices
f) Jakarta (Completion in 2017) – USD 117.11 M per Km
According to latest research on the subject the per Km cost of Metro Trains generally range between USD 50 Million and USD 100 Million.
19. Project Benefits
The Orange Line will provide important links between areas slated for new development in the south and the major employment and education centres, concentrated in the city centre and along the route such as UET. The benefit of these transport links to a certain extent is reflected in improved journey times but the actual perceived benefits of improved accessibility and flexibility is greater than that which can be measured by journey times alone.
Reduction in traffic:
Reductions in Bus Flows at GT Road near University
2025 Two-way Hourly Bus Flows
City Bus (Non AC)
Reductions in Bus Flows at Multan Road near Gulshan-E Ravi
2025 Two-way Hourly Bus Flows
City Bus (Non AC)
City Bus (AC)
Provincial Mini Bus
Provincial Large Bus
Local Province Wagons
Local Province Ord
Total Potential Market for LRMTS (daily passengers)
Growth (% p.a.)
Bus and Wagon
Results of Passenger Flow Forecast on Orange Line
Initial Term (2015)
Short Term (2021)
Long Term (2025)
Passenger Traffic Volume (10,000 person-time/day)
Average Travel Distance (km/person-time)
Sectional Passenger Flow at Peak Hours (10,000 person-time)
The tables show that there are considerable savings in buses with the OL in place. The maximum saving is on Multan Road where a reduction of 337 buses (2-way) can be achieved. Much of the saving can be attributed to the reduction of long distance through buses – a move which also helps to provide relief for the congested city centre area. Overall, the Orange Line is forecast to reduce the total fleet of local buses (i.e. excluding long distance) in Lahore by 380 vehicles (reducing total bus/wagon vehicle requirements in the city to around 3,770 vehicles).
b. Environment Benefits
• Low greenhouse gas emission (e.g. chlorofluorocarbons)
• Reduction in carbon dioxide emissions as estimated through clean development mechanism (145227.5 ton per annum pro rata – Delhi Metro)
c. Social Benefits
• Reduction in congestion on the side roads
• Less respiratory diseases
• Reduction in accidents
a. Economic benefits (Travel time + Vehicle Operating Cost Saving)
a) Ridership = Approximately 245,000 passengers/day
Direct Economic Benefits
In first year of operation
Annual average over 30 years period
a) Passenger Travel Time Savings
PKR 9.29 Billion
USD 88 Million
PKR 29.5 Billion
USD 279.62 Million
b) Vehicle Operating Costs Savings
PKR 5.62 Billion
USD 53.27 Million
PKR 9.87 Billion
USD 93.55 Million
PKR 14.9 Billion
USD 141.23 Million
PKR 39.38 Billion
USD 373.27 Million
b) Economic benefits of approximately Rs. 123 M per day
c) Train speed (Max) = 80 Km/h
d) Train Speed (Commercial) = 34.8 Km/h
e) End to End travel time = 45 Minutes
f) End to End present travel time = 2 to 2.5 Hours
g) Reduction in congestion on the side roads
a) Open International Tender were floated on 29.01.2014 in Financing + EPC mode. Pre-bid conference held on 18.02.2014 was attended by representatives of 11 foreign and 5 local companies. On Bid submission date i.e. 21.04.2014 only two Chinese companies namely CR-NORINCO JV and SINORAIL JV furnished their bids.
b) In the meeting of the President of Pakistan with Chinese Premier held on 19.02.2014 in Beijing, the Chinese Premier decided to fund the Orange Line project with the condition that Chinese Enterprises will execute the project using Chinese Equipment. He also declared it as a Chinese gift to Pakistan.
c) The International Tender was cancelled on May 12, 2014. Inter-Governmental Framework Agreement signed on 22.05.2014 providing that Orange line shall be fully designed, constructed and supervised by Chinese Enterprises. The Framework Agreement also inter alia required initiation of negotiations on Commercial Contract of Orange Line. Under instructions of the Chief Minister, on 26.05.2014, a reference was made through EAD to the Chinese Government requesting for their concurrence that selection of Chinese Enterprise may be done through an open competitive bidding restricted to China.
d) On 30.05.2014 the Chinese Government informed that for projects using Preferential Buyer’s Credit, the China Chamber of Commerce and Import and Export of Machinery and Electronic Products (CCCME) shall provide a shortlist of Enterprises (no more than three). The Pakistani proprietor shall tender from this shortlist. In the history of China-Pakistan bilateral concessional lending, Orange Line is the first project in which tendering process was followed. On 02.06.2014 a detailed Eligibility Criteria and required evidence of bidder’s capability, experience and financial capacity was sent to the Chinese side for recommending eligible Chinese Contractors.
e) On 24.06.2014, the CCCME recommended the same companies i.e. CR-NORINCO JV and SINORAIL JV who participated in our international tender for Orange Line project. On 24.06.2014, bids were invited from these two companies. Technical bids of the bidders were opened on 18.07.2014. Financial bids of the bidders were opened on 04.08.2014 after M/s NESPAK and CCCC declared them technically compliant. CR-NORINCO emerged as lowest bidder with bid price of USD 2.139 Billion. Breakup of final Contract Price:-
i) Contract Price of Civil Works= USD 531,681,818
ii) Contract Price of Consultancy Services = USD 24,000,000
iii) Contract Price of E&M Works (inclusive of 6% Withholding/Income Tax) = USD 922,500,000
iv) Sub-total (a to c) = USD 1,478,181,818
v) Contingencies = USD 147,818,182
vi) Total Price = USD 1,626,000,000
Chinese side agreed to sublet Civil Works of the project to Pakistan side resulting in significant savings- again an unprecedented achievement. Significant economies / price reductions achieved in E&M Work’s price. Effective negotiations yielded project cost savings of approximately USD 660,818,182/- with unprecedented support of the Chinese Government and gracious flexibility shown by CR-NORINCO. Transparent tendering process of Civil Works carried out by LDA yielded a further saving of PKR 5.97 Billion.
21. COMPARISON OF COST BETWEEN ORANGE LINE AND OTHER WORLD’S METRO COST
Cost comparison of some of metros in the world on Per Km basis is as below:
Name of Metro
Cost in million USD / Km
· Core project cost USD 1,478 M
· Core cost + Contingencies USD 1626 M
Mumbai (Completed in 2014)
Pune (Completion in 2018)
Jaipur (Completed in 2015)
Copenhagen (Completed in 2002)
69.8 in 2002 prices
Jakarta (Completion in 2017)
According to latest research on the subject the per Km cost of Metro Trains generally range between USD 50 Million and USD 100 Million.
22. Resource Prioritization
Health & Education sectors are on top priority on Government’s agenda. Sometimes, it is falsely reported that these sectors are not in the priority list of the Government. The spending of funds during the year is governed by various factors and also reviewed on monthly basis. Different schemes by the Government are being carried out at different stages. New schemes in other departments like Health and Education involved various steps which takes time to materialize and transfer the benefits at grass root level. Sometimes delay occur in conceiving the scheme, studies conducted for project, delays in procurement process etc. majority of the projects are continuously funded in many years. During planning & feasibility not huge funds are required but after approval & research instantaneous funding is required to kick start a new project. Keeping in view the efficiency required for a project, re-appropriation is being done for a project. Re-appropriation of funds is basically a need based mechanism for project which is under direct control of Administrative Bodies & Provincial Secretaries within a department. The purpose is to ensure the presence of cash flow as per requirement of a certain project realizing the need & the funds are later re-cooped after the funds for the same project are released.
Glimpse of fund allocation on Education, Health, development and non-development from 2010 till 2016
District Gov Provincial
23. Environment Assessment Report
The project consultant M/s NESPAK prepared Environmental Impact Assessment (“EIA”) report of the proposed project area as required under Punjab Environmental Protection (Amendment) Act, 2012 of the Pakistan Environmental Protection Act 1997 (“PEPA”).
LDA submitted the EIA Report to the Environmental Protection Agency, Punjab (“EPA”). Public hearing regarding EIA study was conducted on June 30, 2015 at Al-Hamra Cultural Complex, Gaddafi Stadium by EPA in which public in large participated. EIA report was also placed before the review committee of EPA which constitutes the leading environmentalists. The EPA approved the Project on July 9, 2015 in accordance with the law, and after fulfilling all the legal requirements.
The NESPAK recommended measures to mitigate any impacts, but concomitantly concluded that the proposed project and the overall affects of the project would be positive and would reduce the air & noise pollution in the vicinity.
24. HISTORIC BUILDINGS
Following historic buildings protected under Punjab Special Premises (Preservation) Ordinance 1985 falls in the vicinity of project alignment:-
a) Lakshmi Building (Minimum distance from Orange Line is 10.4 meters)
b) General Post Office (G.P.O)
c) Aiwan-e-Auqaf (Shah Chiragh) Building
d) Supreme Court Registry Building
e) Mauj Darya Darbar & Mosque
Following buildings protected under Antiquities Act 1975 falls along the alignment of Orange Line project:
1. Shalamar Garden (Minimum distance from Orange Line is 29 meters on one end and 22.8 meters on the other end.)
2. Gulabi Bagh Gateway (Minimum distance from Orange Line is 20.9 meters)
3. Buddhu’s Tomb (Minimum distance from Orange Line is 18.1 meters)
4. Chauburji (Minimum distance from Orange Line is 15.9 meters)
5. Zeb-Un-Nisa Tomb (Minimum distance from Orange Line is 33.5 meters)
There is another old building of Saint Andrew’s church in the vicinity which is not protected either under Punjab special premises (preservation) ordinance 1985 or Antiquities Act 1975, which will also be safeguarded.
25. GROUND BORNE VIBRATIONS (GBV)
The project consultant NESPAK-CEC JV have taken all possible measures to protect and preserve these national heritage sites. Special considerations have been given in design to protect these heritage sites from any adverse effect. A complete vibration analysis has been conducted by NESPAK for trains to be operated with maximum operating speed less than 80 Km/hr and average operating speed of 38-42 km/hr. According to German standards, the maximum vibration velocity at the foundation level of the heritage structure shall be less than 3mm/sec. The theoretical 2D FEA model of pier-ground system of light rail train viaduct system similar to Orange line project, it is concluded that beyond a distance of 10-12 m from the main pier of rail the ground borne vibrations (GBV) are negligible (<0.30 mm/sec).
For historical buildings in proximity of The Mall road, Cut & Cover technique has been adopted to protect the integrity of façade of these archaeological sites. In order to protect these special premises from ground induced vibrations, whole structure is bifurcated into two structural parts i.e. U shaped structure inside Inverted U. There is an isolation/gap between these two structural components to preclude the impact of train induced vibrations on adjacent buildings. Sand cushion at the bottom of underground structure and mechanical dampers under rail track will be provided as per design to further mitigate the effect of vibrations and noise.
The elevated structure of the Orange line is very slim and sleek and will not create any significant visual barrier. Furthermore, the Soffit level of the deck is 12m that will allow a clear view of the monument while traveling on ground. Shifting of track 200 ft away towards populated area from these heritage sites will only result in unnecessary displacement of hundreds of people. The Director General, Archaeology has already issued NOC under section 22 of Antiquities Act, 1975 & Punjab Special Premises (Preservation) Ordinance, 1985.
26. HERITAGE SITES NEAR METRO PROJECTS IN THE WORLD
Following is the detail of the Metro Train passing in different Countries near old historical buildings.
Distance from Metro
25 m ( just beside boundary wall)
Karnataka High Court
Madras Law College
Just beside boundary wall
Just beside boundary wall
Victoria Public Hall
Just beside boundary wall
Rojgareshwar Mahadev & Khastran Mahadev Temple (200 Years old)
200 years old
Moazzam Jahi Market
Karol Bagh Temple
Bell Laboratories, Manhattan
Between the building (1934-80) 46 years
Temple of Hephaestus
Stoa of Attalos
138 BC, Re-const 1952
Just beside boundary wall
Pont de Bir-Hakelm Bridge
(between Two old buildings)
6 m (over the Bridge)
Oberbaum Brucke Bridge
0 m (over the Bridge)
1003 (re-const 1970)
Palace of Justice
27. NO NEGATIVE VISUAL IMPACT
The elevated structure of the Orange line is very slim and sleek and will not create significant visual barrier. Furthermore, the Soffit level of the deck is 12m that will allow a clear view of the monument while traveling on ground. Maximum permissible sharp turning radius and curves adopted near these monuments to ensure maximum possible distance with no adverse effect and keeping land acquisition/displacement of general public at minimum. Shifting of track 200 ft away towards populated area from these heritage sites will only result in unnecessary displacement of hundreds of people.
The Orange Line Metro Train project is being constructed in conformity with the Antiquities Act, 1975 and the Punjab Special Premises (Preservation) Ordinance, 1985. As per requirement of Law, a formal request for issuance of NOC was made to Director General, Archaeology. After detailed deliberations and long correspondence, Archaeology Department of Government of Punjab agreed with the stance of LDA that there would be no adverse effect on heritage sites due to this train. Consequently Director General, Archaeology issued NOC under section 22 of Antiquities Act, 1975 & Punjab Special Premises (Preservation) Ordinance, 1985.
28. Land Acquisition and Resettlement
a) LDA started procedure under Land Acquisition Act, 1894 (“Act”) to acquire the land required for the project, a preliminary Notice under Section 4 of the Act was issued for lands likely to be required for the project. Notice under Section 5 of the Act was issued seeking objections from the public, public hearing was conducted on 30.11.2015. After complying with the procedure under the Land Acquisition Act, 1894, a Notification No. SR/7120 dated 14.12.2015 under Section 6 of the Act was issued by the office of the Commissioner, Lahore Division, Lahore. The Collector then issued notices under section 9 of the act ibid which was served upon the individuals whereby objection/claims with respect to compensation and measurements made under section 8 for the land to be acquired were invited and a public hearing was also conducted. After inquiring into the objections the Land Acquisition Collector announced the award.
b) The land price was assessed by District Price Assessment Committee (DPAC). An Independent Evaluator, approved from State Bank of Pakistan, was also approached to assess the market price of land. In this project, land compensation price is almost twice as compared to that of Metro Bus System completed in 2012. General public have been benefitted with 15% Compulsory Acquisition charges for the acquired land. 100% amount of Structural Assessment as Disturbance Allowance and Business Allowance has been paid to the affectees.
c) A certain section of affectees which did not have ownership documents since they have been in possession of the building/land for more than 50 years has also been considered by a committee constituted on the directions of Chief Minister for amicable settlement of these kind of issues.
i. Bangali Building:
Evacuee Trust Property Board property, 95 families were given lump sum compensation @ Rs. 1 million per family from special grant of Chief Minister.
ii. Maharaja Building:
Government of Punjab property through Chief Settlement Commissioner, 58 families were given a lump sum compensation @ Rs. 1 million per family from special grant of Chief Minister.
iii. Evacuee Trust Building (Geeta Bhawan) near Lakshami Chowk:
ETPB property, 30 residences and 7 shops were affected. ETPB and the occupants to decide the compensation package.
iv. Institute for disadvantaged children (school near Jain Mandir):
ETPB property, lump sum amount of Rs. 1 Million was granted to the school as shifting allowance, from special grant of Chief Minister. The Committee also recommended to reconstruct the dismantled portion of the Institute after completion of the Project.
v. Postal Flats:
LDA will reconstruct the dismantled portion of postal flats after completion of the Project. The committee also requested to Post Master General to provide the occupants of the affected portion of flats, a handsome amount of money equal to the house requisition as per scale wise rate of federal government so that they can have a reasonable rented apartment in the vicinity during construction period (Approximately 1 year). It is worth to mention that out of 76 occupants that are being effected, 60 occupants are in service while 16 occupants are illegal. It is further recommended that a lump sum amount of Rs. 0.1 Million per flat may be given as shifting allowance to the effected occupants from special grant of Chief Minister.
vi. Parachute Colony near Railway station:
Katchi Abadi on Railway land, comprising18 houses. A lump sum grant of Rs. 1 Million per family as compensation from special grant of Chief Minister on compassionate grounds was recommended (however, the case is in court of law).
vii. Lahore Khas Residential area (Kapoor Thalla House, Katcha Lake Road, Jain Mandir, Edward Road etc):
The occupants without proper land ownership documents will get a compensation package out of CM special grant at a lump sum rate of Rs. 2.5 million per marla for the residential area and of Rs. 3.5 million per marla for commercial area.
viii. Qazal Bash Trust properties at Lakshmi Station:
The Qazalbash Waqf area measuring 10 Kanal 13 Marla 013 Sft is required for the project. Since the matter is sub-judice, it was proposed that further deliberations may be done for mutual settlement between the Trust and the occupants for deciding share of both parties in the compensation package.
The GoPb has taken every step to ensure minimum nuisance to the public largely in lieu of Land Acquisition for the project and allocated Historic Package of 20 Billion Rupees for affectees. In addition to it, Grant in Aid of Rupees 1.6 Billion for those having deficient title documents was given.
29. Lahore without project.
Lahore, the provincial capital of Punjab, second largest city of Pakistan with a population of about 11 million is the 16th most populace city in the world. The city’s population has been growing at an annual growth rate of about 3%. The rapidly growing population coupled with extremely high motorized (registered vehicles increased by double between 2001 and 2008) has resulted in chronic traffic congestion, caused mainly by a) lack of adequate public traffic system and b) inefficient and poor conditions of existing transport system.
Transportation system in Lahore is in a state of crisis. If the issue is not addressed with proper engineering solution based on the studies referred above, extreme congestion, long commute times, choking air pollution, deadly traffic accidents and inadequate public transport will remain fate of Lahore. Billions of Rupees in economic productivity are lost due to congestion. Air and noise pollution severely impact health and quality of life. Transportation is thus one of the most significant contributors to climate change, accounting for 25 % of global emissions in absence of effective mass transit schemes.
30. Damages arising out of delay in project.
Total contract price of civil works (A)
Rate of liquidated damages for delay (B)
0.02 % of A (per day)
Liquidated Damages (C)
=11.64 million PKR/day (@104.7/USD)
Max. Liquidated Damages @10% of A
55.57 million USD
= 5818.18 million Pkr
local contractor idling charges
21 million PKR per day
PKR 51 million per day for any delay
31. Repercussions for Stoppage of Project Execution:
a. The Chinese assistance of approximately USD 45 Billion earmarked for portfolio of CPEC projects may be jeopardized.
b. Even though the Orange Line project is not a part of CPEC, it is being treated as a model for implementation of early harvest projects of the CPEC by China.
c. The whole gamut Pakistan-China Economic relationship can be subjected to serious setback.
d. It may send a wrong signal to all of Pakistan’s other bilateral and multilateral donors.
e. Commitment Charges of approximately USD 5 Million will be imposed on Government of Pakistan annually.
f. Dispute in connection with the Loan Agreement, if not resolved through friendly consultation, shall be referred to China International Economic and Trade Arbitration Commission (CIETAC) for arbitration.
g. Liquidated damages for delay in Civil Works completion will be payable by PMA @0.02 % per day of the Contract price of Civil Works up to a maximum of 10 % under the Commercial Contract. (page 422 of paper book ; commercial contract sub clause 9.3; delay in completion)
32. Who is opposing and Why?
A limited group of rich and privileged people who have the hobby to criticise every development project and have no interest in public transport. Same group which opposed and delayed the canal widening project and signal free projects, and caused loss of crores of rupees are again objecting the public sector project which will benefit a common man. Political opponents who are afraid of Government popularity in case the project becomes successfully operational in time are also opposing the project.