CPEC: ML-1 cots likely to be revised to $ 6.6 billion

Islamabad: The China-Pakistan Economic Corridor (CPEC)’s Mainline 1 (ML-1) project’s cost is being revised under and a new arrangement agreed by China and Pakistan, officials said.

Official reports indicated that Pakistan and China were due to finalise the revised cost of the ML-1 project to approximately US $ 6.6 billion.

This cost revision can be attributed to China’s flexibility and modifications in project design, combined with Pakistan’s willingness to independently develop certain segments, contributing to cost savings.

This project involves a 1,872-kilometer railway track that connects Karachi to Peshawar, passing through Sindh and Punjab provinces.

The main objectives of the project are to upgrade and double the existing track, lay a new one with improved subgrade for faster speeds up to 160 km/h. All of this is part of the broader CPEC initiative.

Khurram Agha, Pakistan’s Communications Secretary, who leads the Joint Working Groups (JWG) for Aviation, Railways, and Infrastructure within CPEC, along with Railways Secretary Mazhar Ali Shah, is set to attend a JWG meeting in Beijing to finalise the agreement. The primary aim of this meeting is to finalize the cost estimates and address related matters.

If both parties agree, the adjusted cost of the ML-1 project will be around US $ 6.6 billion, which marks a significant decrease from the earlier estimate of $9.8 billion due to project delays.

An official announcement regarding this development is expected during the forthcoming visit of Pakistan’s caretaker Prime Minister, Anwaarul Haq Kakar, to China on October 18.

During this visit, he will participate in annual events related to China’s One Belt and Road Initiative (BRI).

In addition to the cost revision for the ML-1 project, China and Pakistan will also discuss four previously delayed projects, including the Mirpur-Muzaffarabad-Mansehra Motorway, Zhob-Dera Ismail Khan Motorway, and Babusar Top. Formal negotiations for these projects are scheduled to take place during JWG meetings in the coming week.

These developments were reviewed during a recent meeting on CPEC projects, where the caretaker Minister for Planning and Development, Mohammad Sami Saeed, encouraged all ministries and divisions to expedite CPEC projects.