Delay Increases Cost of ML-1 Project by $3 Billion

The delay in the commencement of the Main Line-1 (ML-1) project has drastically increased its cost from $6.8 billion to $9.85 billion, leading to further stress on the already vulnerable economy of Pakistan. The Ministry of Planning’s document seen by Propakistani reveals that during the last government, the flagship project of China Pakistan Economic Corridor (CPEC) had an estimated cost of Rs. 1.11 trillion which is now touching Rs. 2 trillion. It is pertinent to mention here that the Executive Committee of the National Economic Council (ECNEC) approved the PC-1 for the up-gradation of the ML-1 project with a rationalized cost of $6.8 billion in August 2020. However, the modified PC-1 submitted to the Ministry of Planning last month has increased the project’s cost by 45 percent. The document highlights that out of $6.8 billion, about $6.1 billion were to be funded by China, while Pakistan was to contribute the rest. However, the revised estimates suggest that the Chinese share has soared to $8.37 billion, while Pakistan will spend $1.37 billion. ML-1 project will start from 1st January 2023 and complete in June 2031, states the document. Under the project, 1,872 km of railway track will be laid. ML-1 project comprises three packages. Package-I having a rationalized construction cost of $2.7 billion includes the Nawabshah-Rohri section, Multan-Lahore section, Lahore-Lalamusa section, Kaluwal-Pandora section, and upgradation of Walton railway academy, Lahore. The package-II has a rationalized construction cost of $2.67 billion and includes the Kiamari-Hyderabad section and Hyderabad-Multan section excluding work done on the Nawabshah-Rohri section in Package-I. The package-III includes Lalamusa-Rawalpindi section, Rawalpindi – the Peshawar section, and the establishment of a dry port near Havelian with a rationalized construction cost of $1.42 billion.