Punjab govt withholds Rs100m Orange Line funds
The Orange Line project remains a victim of the Punjab government’s poor economic condition and the financial crisis triggered by the coronavirus pandemic, as the relevant departments are calling for the urgent release of the approved funds.
In the latest episode, the Transport Department too has requested for the funds following the earlier call made by the PHA (Punjab Horticulture Authority), reported City42 TV channel on Friday.
In this connection, the transport secretary has written a letter to his counterpart in the Finance Department, as even the approved funds for horticulture works has fallen prey to the coronavirus after the Punjab government withheld an amount of Rs100 million.
Over Rs300 million were allocated to the PHA in the current year but the Punjab government has released only Rs170 million so far.
The letter says the PHA already carried out the planned works through contractors and it had to pay the dues for that. The funds must be released on urgent basis as the contractors are facing severe hardships while the PHA is already facing financial problems, it added.
Meanwhile, the transport secretary has also directed the Punjab Masstransit Authority for sending a summary to get the funds released.
On the other hand, it is revealed that an amount of Rs.6.28 billion is to be paid annually as interest on the loan obtained for the Orange Line Project for 12 years from 2024 to 2036.