Infrastructure & Transport News

[Neo]

Liquid cargo terminal at Port Qasim inaugurated: Pakistan poised to serve as regional economic hub, says Zardari

KARACHI (August 15 2009): President Asif Ali Zardari said on Friday that Pakistan is poised to serve as a regional hub of economic activities due to its strategic location in the area. He was speaking at the formal inauguration of liquid cargo terminal at Port Qasim. Sindh Governor Dr Ishratul Ibad Khan, Chief Minister Syed Qaim Ali Shah, Minister for Ports and Shipping Senator Babar Khan Ghouri, State Minister Nabil Gabol were also present on the occasion.

The President said that Pakistan should not be seen only as a large market of 180 million people, but also seen as a hub of economic activities and other adjacent markets. With 1.2 billion population market on its right and more than 1 billion in up-north and large market of Central Asian Republic in the east, the country is poised to serve as a regional hub and the nearest port to these countries.

Pakistani ports network offers the shortest possible distance to China, Central Asia and other neighbours. The President said that the work on regional pipeline for gas is also on to serve as energy corridor upto central China from Pakistani ports. With all the features and endowments, Pakistan is poised to serve as a regional hub in the area, he noted.

He said that Pakistan would also serve as the major food producer in the area as well as neighbouring regions. In the next couple of years, Pakistan would enhance its per acre yield by three to five times with the help of new high yielding seeds from our great friend China and also seed indigenization.

Zardari suggested the capital market players to raise funds at stock exchanges in local currency instead of borrowing in foreign currencies. The government was already working on this idea and the Finance Minister and his team was preparing a paper in this regard.

This will reduce our dependence on foreign currency loans and enhance the importance of Pakistani rupee in the international market. We need professional management and stock exchange will serve as vehicle for this project, he opined. He said that this will also increase values of scrips at our capital market which is still undervalued.

Referring to another plan of the government to provide 12 percent ownership to workers in state-owned institutions, the President said that it would give the workers an incentive to work hard. He also suggested Minster for Ports and Shipping to charge only the cost of land from investors and instead take bonus share in the company. Do not charge Rs 4 million per acre from them at the beginning of project, just charge the cost of land. It is the start of the project where the companies face shortage of funds, he observed.

[Neo]

PIA’s revenue grows to Rs 4.4 billion

KARACHI: PIA's 321st board of directors meeting approved the half yearly accounts for the period January-June 2009 on Thursday.

The meeting noted in spite of competitive pressures and adverse economic environment, the airline achieved an overall revenue growth of Rs 4.4 billion (11.6 percent) as compared to the corresponding period last year.

This was mainly due to the passenger revenue growth of 11.8 percent. Operating profit before interest, taxation and exchange losses on foreign exchange loans was Rs 1.9 billion, showing an improvement of Rs 6.6 billion over the corresponding period last year.

Board noted that due to high financial costs and adverse impact of rupee-dollar parity on foreign currency borrowings the loss after tax amounted to Rs 5.4 billion.

The board was of the view that plausible options should be worked out for restructuring and re-profiling of non-fleet unproductive loans amounting to Rs 62.3 billion and recommendation should be forwarded to the government of Pakistan for consideration and approval to help PIA pull out of the financial difficulties.

The board was briefed on Benazir Employees Stock Option Scheme for empowerment of employees of State Owned Entities through their representation on the respective boards by transferring 12 percent of government of Pakistan's shares to employees.

[Neo]

‘Thal Canal to cause decline in Sindh agri output’

Tuesday, August 25, 2009
By By Shahid Shah

KARACHI: The province of Sindh would face more shortage of water and decline in production of major crops after construction of Greater Thal Canal (GTC), experts say.

Currently, GTC is not drawing water, but once it starts drawing around 8,500 cusecs (cubic foot per second) of water from Chashma Jhelum link canal there would be more shortage of water in Sindh for early Kharif crops, Idrees Rajput, water expert and former secretary irrigation Sindh told The News.

The history of Thal Project goes back to over 130 years. It was in 1873 that the project was first conceived for the whole of Thal Doab. The proposal to irrigate this area was repeatedly brought up for discussion in 1919, 1921, 1924, 1925, 1936, and in 1949. But the British colonial masters repeatedly shelved the project on the pretext that it will severely hurt the water availability to lower riparian.

The project proposal once again came under discussion in 1975 in a controversial way when Executive Committee of National Economic Council (ECNEC) refused to endorse the project. Finally, on August 16, 2001, General (retired) Pervez Musharraf, then Chief Executive of Pakistan, inaugurated the 30-billion rupee Greater Thal Canal (GTC) project.

In the Indus system, water availability is around 124 MAF (million acre-feet) for four out of five years and 133 MAF for three out of five years. The Indus Basin Irrigation System (IBIS) requires 155.3 MAF. This includes the Water Accord 1991 allocation of 117.35 MAF of water amongst the four provinces, 10 MAF to sea below Kotri, the supplies of about 4 MAF above rim stations for irrigation and for measuring sites, and a contribution of about 8.71 MAF from Ravi and Sutlej pending full utilisation by India.

The water required for Left Bank Outfall Drainage (LBOD) is 2.2 MAF, to raise Mangla capacity is 3.0 MAF and the average water loss in the system (1948-98) is 12.9 MAF. The annual average availability of water is 138 MAF.

“Hence, the system is short of 16.58 MAF. Thus, an additional water of 5.0 MAF required for Greater Thal, Katchi and Rani Canal project is not available. And such project would further aggravate the water system,” said a research report of Sungi, a research organization.

According to the report the repeated cross-reference of availability of water for Greater Thal Canal by the president, WAPDA and federal ministers as well IRSA’s certification of February 20, 1998 shows water flowing down to the Kotri as waste and hence surplus water to the extent of 38.5 MAF is available for future projects. “This has been found to be a sheer misconception and distortion of facts,” said the report.

Looking at the historical data, the total water availability as well as the seasonal and annual river flows in the Indus river system has been highly variable.

Since the completion of Tarbela, annual average rim station inflows are about 131.19 MAF (IRSA). The highest annual flow was 187.66 MAF in 1959-60 and 91.22 MAF in the year 2001-2002.

Sindh government has time and again opposed any construction of canals and barrages in Punjab against water accord of 1991. But, no heed has been given towards Sindh’s reservations.

Sindh Assembly unanimously passed two resolutions and demanded that federal government must abandon the project, as it would seriously hurt the interests of lower riparian Sindh.

The amount of water flows below Kotri has been reduced from 80 MAF in 1947 to 2.142 MAF in 2002-2003. As the water stopped flowing downstream, sea water started flowing upstream and according to an estimate, the saline seawater has intruded some 100 kilometers upstream inundating 2.2 million acres of land.

According to IUCN, Indus requires 27 MAF water to check the sea intrusion and to keep the Indus delta alive. The Kotri downstream water should be ensured to save human, environmental and biological life.

Idrees Rajput said GTC would draw extra water and besides degradation of Indus Delta the whole irrigation system would suffer its repercussions.

[ajpirzada]

Tri-nation train receives warm reception in Turkey
Tuesday, September 01, 2009
By our correspondent

ISLAMABAD: The freight train, which started its 6,506-kilometre historic journey under the banner of the Economic Cooperation Organisation (ECO) to Istanbul from Islamabad via Tehran, completed its journey within 15 days on August 28.

A senior official at the Ministry of Railways told The News that the train reached Istanbul on the evening of August 28 and was given a warm reception there next day. Besides others, he pointed out, Turkish transport and communication minister also participated in the reception.

The train had reached Tehran on August 23 and it took four and a half day to enter the suburbs of the Turkish capital. It was estimated the good train would take 15 days to reach its destination, but it took 14 and a half-day instead.

Prime Minister Syed Yousuf Raza Gilani had formally launched the train journey on the Independence Day of Pakistan (August 14).In reply to a question, the official maintained it would take even lesser days after the train speed would be increased as the track between Kirman and Zahidan was newly-constructed and speed could not exceed from 25 to 30 kilometre per hour.

Similarly, he said after the improvement of the dilapidated track from Quetta to the Iranian border, Tuftan, the train speed would also be significantly increased. The freight train carried rice and some textile and chemical related products from Islamabad and containers, carrying rice were unloaded at Tehran, whereas the destination of other items was Istanbul. It consisted of as many as 20 containers: 14 were for Tehran and six for Istanbul.

Pakistan Railways Chief Commercial Manager Jam Bashir, who had accompanied the train, is also back and is expected to report to the ministry shortly about his unique experience.

Four experts accompanied the train: one each from Pakistan, Iran, Turkey and ECO Secretariat; now on the completion of the journey, they were to report their observations, keeping in view technical and transport-related matters.

http://www.thenews.com.pk/daily_detail.asp?id=196059

[Neo]

Pakistan signs $230m road deal with ADB

Thursday, September 03, 2009

KARACHI: The Asian Development Bank and Pakistan signed an agreement on Wednesday to invest $230 million in improving national highways to promote trade, economic and industrial growth, the ADB said in a statement.

Pakistan has signed scores of agreements with foreign and international lenders since November when a balance of payments crisis almost bankrupted the country.

The government agreed in November to an International Monetary Fund (IMF) emergency loan package of $7.6 billion to avert the crisis and shore up reserves, and in July the Fund increased the loan to $11.3 billion.

In a statement, the ADB said the latest investment would create an environment for safer, faster, cost-effective inter-regional transport that would enhance economic activity and opportunities for people in smaller cities and remote parts of the country.

In July, the ADB provided Pakistan with $40 million in loans to support improvements in social services in Punjab.

Pakistan also received $500 million from the ADB on June 30, out of which $150 million was allocated for the Benazir Income Support Programme, a cash transfer programme focusing on poor women and named after assassinated former prime minister Benazir Bhutto.

The remaining $350 million had been allocated to help the government remove subsidies and to implement market-based prices for wheat and electricity.

[Neo]

Forex reserves rise to $14.31bn

KARACHI (September 03, 2009): Pakistan's foreign exchange reserves rose to $14.31 billion in the week ended on Aug. 29 compared with $12.85 billion previously, the State Bank of Pakistan said on Thursday.

"The International Monetary Fund has increased its SDR allocation for all member countries and for Pakistan it equals to $1.2 billion," said Syed Wasimuddin, chief spokesman for the SBP.

The State Bank's reserves rose to $10.79 billion from $9.36 billion a week earlier, while reserves held by commercial banks also rose to $3.52 billion from $3.49 billion a week earlier, the State Bank of Pakistan said.

Reserves jumped by $1.11 billion to $12.96 billion in the week that ended on Aug. 15 when a new tranche of an IMF loan arrived.

Pakistan agreed in November to an IMF emergency loan package of $7.6 billion to avert a balance of payments crisis and shore up reserves.

The fund increased the loan to $11.3 billion in July, and then released the third tranche of $1.2 billion.

Foreign reserves hit a record high of $16.5 billion in October 2007 but fell steadily to $6.6 billion by November of last year, largely because of a soaring import bill.

On Aug. 1, the State Bank stopped using foreign exchange to pay for diesel and other refined petroleum products, which will force importers to obtain the dollars they need in the market.

The central bank will continue to provide foreign exchange for crude oil imports until Feb. 1 next year.

[Neo]

Port Qasim berth occupancy at 64%

KARACHI: Berth occupancy was maintained at the Port at 64 percent on Sunday day as against to 73 percent on previous day where a total of seven ships namely C.V CSAV Rio Maule, C.V Al Mariyah, M.V Alexi-3, M.V Gulf Eagle, M.V Hiba Al-Noor-B, M.T Cherry Galaxy and M.T Stella are currently occupying berths to load/offload Containers, Cement, Palm oil and Furnace oil respectively during last 24 hours. Shipping activity remained active at the Port where three ships scheduled to load/offload Containers and Palm oil were berthed at Qasim International Containers Terminal and Liquid Cargo Terminal respectively on Sunday. Meanwhile, two more ships carrying Containers and Furnace oil also arrived at outer anchorage of Port Qasim during last 24 hours.

Cargo throughput during the report stood at 58,959 tonnes comprising 50,171 tonnes import cargo and 8,788 tonnes export cargo inclusive of containerized cargo carried in 1,583 Containers (Boxes) was handled at the Port. app

[Neo]

Road building loan

EDITORIAL (September 05 2009): The government of Pakistan and the Asian Development Bank (ADB) signed phase 2 of a multi-tranche financing facility (MFF) titled National Trade Corridor Highway Investment programme. MFF, according to the ADB website, is a "financing modality that supports a client's medium to long-term investment programme or plan. ADB's Board of Directors approves a maximum amount for an MFF, and the conditions under which financing will be provided.

On the basis of the Board's approval, and at the client's request, ADB Management converts portions of the facility amount into a series of tranches to finance eligible investments. A tranche can be a loan, grant, guarantee, or ADB-administered co-financing." Analysts have shown concern over the possibility that as subsequent phases of an MFF do not require ADB Board approval, it allows the Bank's management to bypass the oversight provided by the Board of Directors.

It may be recalled that the ADB management has come under considerable criticism, not only by the Press, the Financial Times lamented the lack of transparency in ADB management decisions, but also by member states with the US Director taking the unprecedented step of voting against the Asian Development Bank's long-term strategic plan last year.

In this context, it is pertinent to note that the MFF is a new product and there are no evaluation studies yet to indicate its success or failure. Be that as it may it is relevant to note that the ADB was perhaps the only international financial institution that supported Pakistan after the nuclear tests were carried out in May 1998.

National Trade Corridor Highway Investment Programme MFF loan to Pakistan consisted of a loan of 890 million dollars from the ordinary capital resources (Libor market rates applicable) and only 10 million dollars from the concessional Asian Development Fund, related to supporting expressways and motorways. This MFF would be provided over a 10-year period representing 16.6 percent of the overall National Trade Corridor (NTC) highway investment plan.

The first phase consisted of 545 million dollars from ADB which comprised 77 percent of the project, with the remaining finances to be made available by the government. The two sub-projects under this tranche included the (i) Peshawar-Torkham section as the main objective at the time of the project's preparation in 2007, may have been support for a regional trade corridor and the (ii) Faisalabad-Khanewal section.

The agreement signed recently was to launch the second phase of the MFF which includes (i) widening the existing section of 65 kilometers, between Sukkur and Jacobabad, to a four lane dual carriageway and (ii) constructing a new road bypassing Shikarpur, of 5 kilometers and improvement of the Qila Saifullah-Zhob Road, which will widen and improve an existing section of the road.

Granted that the ADB is not able to force a project down the throat of the National Highway Authority (NHA), yet one would have hoped that by adopting a more pragmatic approach, through providing a rationale that is more consistent with the economic needs of the country, the government and ADB had agreed to provide connectivity between Gwadar and Ratodero on a priority basis. At present, connectivity is provided through the Mekran Coastal Highway, linking Karachi to Gwadar.

Critics argue that the government should defer the focus on borrowing for road building, in favour of borrowing solely for the deficient energy sector in the short term at least. International lending agencies like the World Bank and the ADB are also supporting projects that envisage enhancing Pakistan's generation/transmission capacity, as well as acting as 'auditors' of the controversial rental power projects.

[Interceptor]

Security cameras to be installed in trains



Sunday, September 13, 2009
Saeed Ahmed

Rawalpindi

The Pakistan Railways is working on a plan to install security cameras in all trains running on different routes through out the country.

Official sources in Pakistan Railways said that the plan would take some time to be enforced. The department requires funds for implementing several schemes for the betterment of Railways and tightening its security system.

However, a project, which was in the pipeline including procurement of six vigilance cameras, is under process and is near completion. Under the plan, the Railways would in short future install one camera each at Rawalpindi Railway Station, Loco shed, CDA Workshop, divisional superintendent office and Diesel Workshop. One camera for security purposes will also be installed in the Carriage Factory.

The officials told ‘The News’ that the vigilance cameras to be installed in all trains and coaches would meet two purposes. First the overall security system during travelling would be improved to the much satisfaction of the passengers.

Secondly, the department sitting in a control room would be able to supervise and monitor the working of ticket checkers and traffic personnel while checking the passengers.

The Railways has formed different teams, which would work in all trains/coaches to keep vigil on the ticket less passengers. The ticket less passengers would be charged heavily including double fares from the station he boarded till his destination, as fine. In addition to this, he or she would be bound to pay extra 15 per cent documentation charges, the sources told.

Pakistan Railways Divisional Superintendent Jalal ud Din while talking to ‘The News’ confirmed the reports relating to installation of cameras in trains, railway station, CDA Workshop and other departments. He said that many other projects are in the pipeline for implementation, however all these projects depend on availability of funds.

http://thenews.com.pk/daily_detail.asp?id=198257

[Neo]

Induction of 500 CNG buses by December'2009: non-release of funds delays project

KARACHI (September 13 2009): The directives of President Asif Ali Zardari to induct 500 CNG-powered buses in the city under "Shaheed Benazir Bhutto Bus Project" by December this year are unlikely to be implemented as the Ministry of Environment is reluctant to release the funds of Rs 300 million.

According to sources, the ministry was to issue Rs 280.705 million and Rs 19.295 million to the State Bank of Pakistan (SBP) and the Karachi Mass Transit Cell (KMTC) of the City District Government Karachi (CDGK) respectively. They said the SBP was involved in the project to build the confidence of commercial banks, which would give loans to the operators/investors of the CNG buses, as the banks had previously bad experience of funding to the Urban Transport System (UTS) project.

They said the SBP might issue necessary instructions to all the banks to entertain the operators/investors for funding the transport programme as per approved credit policy subject to availability of subsidised amount in respect of down payment and mark up subsidy in the State Bank.

In an exclusive meeting in Karachi on 10th August, the Minister for Finance had advised the Governor of the State Bank of Pakistan to issue a necessary circular to commercial banks to facilitate the funding for CNG-powered buses. He had also directed the Secretary Finance to release funds, and if required, anticipatory approval of Ecnec might be obtained.

The SBP, the sources said, had demanded the release of the subsidy by the government to the project in advance as it would build the confidence of commercial banks. Rs 19.295 million was needed to the KMTC of the CDGK for the establishment of Project Implementation and Monitoring Unit (PIMU).

They said the public - private partnership based environment friendly public transport system under Karachi-CNG bus project, sponsored by the federal government, was ready to kick off. But ENERCON, the Ministry of Environment has been continuously delaying the release of the sanctioned amount for the project.

If the delay in transferring the funds to SBP / KMTC, CDGK, remained for more time, the environment friendly 500 CNG buses' project would not be possible to be started in the given time set by the President during his visit to the city in April this year.

It is pertinent to mention here that the project was initially announced by the federal government in the fiscal year 2006-07, at an estimated cost of Rs 2.5 billion, with the deadline for buses' introduction being set February 2008.

Under the federal government's plan, the project would be a public-private partnership enterprise and would lead to the introduction of 8,000 CNG buses throughout the country, and 800 buses for Karachi. But initially, 500 buses were to be introduced in the city and for that purpose during the current financial year an amount of Rs 500 million has been released to the Ministry of Environment for 500 CNG buses to Karachi.