ML-1 project cost reduced to $6.67bn

As the third Belt and Road Initiative forum is set to begin on Oct 17 in Beijing, Pakistani and Chinese authorities are scheduled to sign an addendum to the CPEC’s framework agreement, replacing the mega $9.85 billion ML-1 project cost with a newly rationalised and agreed project cost of $6.678bn. Since Prime Minister Anwaarul Haq Kakar and his delegation are set to attend the forum, the rationalised estimate for the ML-1 project, Pakistan’s first-ever state-of-the-art railway project, has been finalised under Article 10 of the framework agreement signed in 2017 and renewed after five years, Dawn has learnt. The original/previous ML-1 project, with a budget of $9.85bn, was approved by Ecnec on Oct 31, 2022. It featured a 1,726km long track designed for speeds of up to 160km per hour, complete grade separation and fencing, making travel durations of 10 hours between Lahore and Karachi, 2.45 hours between Lahore and Rawalpindi, and 14.30 hours between Karachi and Peshawar. Under the $6.678bn revised project called “Rationalised Upgradation of ML-1 at 140km per hour (upgradable to 160km per hour)”, the project length remains the same at 1,726 km. Another revised cost of $3.136bn, referred to as “Complete Track Rehabilitation (CTR) of ML-1 at 120km per hour,” was considered but found unsuitable by the authorities.