Lahore metro train 'to run in June'

Three foreign companies will receive around Rs5.2b annually to operate it

By: News Desk      Published: 07:33 PM, 5 Feb, 2020
Lahore metro train 'to run in June'

Some light across the political and bureaucratic tunnel has emerged for the long-delayed Orange Line Metro Train.

The much-awaited city transport project is now expected to be operational by June this year, though at a debilitating cost.

The Punjab Government has awarded the operation and maintenance (O&M) contract of the project to a consortium of three companies.

Under the contract, the province will pay over Rs5 billion and Rs160 million annually to two Chinese companies - NORINCO and Guangzhou - and one South Korean company - Daewoo.

According to a 24 News report, the contract between Punjab Mass Transit Authority (PMTA) and the consortium has been signed for eight years operation and it will come into force in June 2020.

Accepting bid of the consortium, the PMTA has issued a letter of acceptance.

As per the contract, a total of 1,330 recruitments – both technical and non-technical – will be made.

Both Daewoo and Guangzhou will supervise financial and administrative matters while NORINCO will oversee matters related to the operation and maintenance.

The three companies will have to pay 10 percent of the total annual payment as performance guarantee in the eleventh month of every year.

The PMTA will be responsible for lighting on the tracks and will pay the electricity bills of the whole project.

Other Chinese companies will bear expense related to Orange Line Depots and the operations and maintenance of stabling yard.

The total expense for running the train in Lahore will exceed Rs40 billion per year.

In case of delay in execution of the contract, the responsible party would be liable to pay fine.

Story based on Durre Nayab’s exclusive report.