1 PROJECT BRIEF OF LAHORE ORANGE LINE METRO TRAIN 1. Cities are drivers of economy whereas Public Transport is lifeline of urban life and city development. Mass Transit is neglected in a number of mega cities of developing countries, resulting in extreme congestion, long commuting times, choking air pollution and deadly traffic accidents. Prevalence of individual transport results in huge economic losses. 2. World over, governments assume the primary responsibility of solving the above problems through infrastructure development projects and urban mass transit schemes as these become the primary factors in development of national economy and maintenance of order in mega cities. 3. In order to address the ever increasing traffic and resultant congestion in Lahore, studies conducted in the 1990s by the Government of Punjab, identified the need for mass transit to meet future public transport demands and recommended Ferozepur Road as the priority corridor. Despite various attempts, no project could come on ground. Transport Department, Government of the Punjab commissioned MVA Asia Ltd to undertake a Feasibility Study of a Rapid Mass Transit System (RMTS) for Lahore in 2005-06 which covered the development of a Long Term RMTS network for Lahore and the feasibility of the priority Green Line, based on identification of potential mass transit corridors, followed by a broad assessment of patronage and engineering constraints in those corridors. The order of priority for implementing these lines was then determined based primarily on forecast passenger demand in the following order of priority:- Green Line – Ferozepur Road/Mall Road/Ravi Road/Shahdara. (Gajju Matta To Shahdra; Completed; 27 Km length) Orange Line – Raiwind Road/Multan Road/Macloed Road/ Railway Station/GT Road (Ali Town to Dera Gujjran ; 27.1 km Length) Blue Line – Township/Gulberg Boulevard/Jail Road Purple Line – Bhatti Gate/Allama Iqbal Road/Airport 4. The study conducted by MVA Asia Ltd included their recommendations on Green Line. They also undertook the Feasibility Study of the Orange Line (LRMTS) in October 2006 which was completed in 2007.
Transcript
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PROJECT BRIEF OF LAHORE ORANGE LINE METRO TRAIN
1. Cities are drivers of economy whereas Public Transport is lifeline of urban life
and city development. Mass Transit is neglected in a number of mega cities of
developing countries, resulting in extreme congestion, long commuting times,
choking air pollution and deadly traffic accidents. Prevalence of individual
transport results in huge economic losses.
2. World over, governments assume the primary responsibility of solving the above
problems through infrastructure development projects and urban mass transit
schemes as these become the primary factors in development of national
economy and maintenance of order in mega cities.
3. In order to address the ever increasing traffic and resultant congestion in Lahore,
studies conducted in the 1990s by the Government of Punjab, identified the need
for mass transit to meet future public transport demands and recommended
Ferozepur Road as the priority corridor. Despite various attempts, no project
could come on ground. Transport Department, Government of the Punjab
commissioned MVA Asia Ltd to undertake a Feasibility Study of a Rapid Mass
Transit System (RMTS) for Lahore in 2005-06 which covered the development
of a Long Term RMTS network for Lahore and the feasibility of the priority Green
Line, based on identification of potential mass transit corridors, followed by a
broad assessment of patronage and engineering constraints in those corridors.
The order of priority for implementing these lines was then determined based
primarily on forecast passenger demand in the following order of priority:-
Green Line – Ferozepur Road/Mall Road/Ravi Road/Shahdara. (Gajju Matta
To Shahdra; Completed; 27 Km length)
Orange Line – Raiwind Road/Multan Road/Macloed Road/ Railway Station/GT
Road (Ali Town to Dera Gujjran ; 27.1 km Length)
Blue Line – Township/Gulberg Boulevard/Jail Road
Purple Line – Bhatti Gate/Allama Iqbal Road/Airport
4. The study conducted by MVA Asia Ltd included their recommendations on Green
Line. They also undertook the Feasibility Study of the Orange Line (LRMTS) in
October 2006 which was completed in 2007.
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5. According to Feasibility Study, the Green line Metro Train project was estimated
to cost USD 2.4 Billion. The Asian Development Bank expressed willingness to
finance approximately USD 1 Billion of its cost but no loan agreement was
signed. USD 1 Billion was expected to be raised through private sector financing
which also did not mature and was later found non-feasible. The Government of
Punjab through LTC negotiated and signed an agreement in China for Green
Line project at a cost of USD 1.7 Billion on 22.04.2011. However, the project
could not go through because the Sovereign Guarantee from the Federal
Government was not committed.
6. The Green line project was finally executed by the Punjab Government in 2012-
13 as Bus Rapid Transit System, with a total cost of USD 300 Million and is
presently serving the public in a big way. Average daily ridership of Green Line
on a working day is over 150, 000 Passengers per day. It is clarified that the ADB
never committed any funding for Orange Line project.
7. In 2014, the seven years old feasibility study was updated by NESPAK on
directions of Punjab Mass Transit Authority. NESPAK proposed following two
options:
Option-1: Mall Road in cut & cover section and viaduct in other reaches.
Option-2: Viaduct in entire length of the project
8. Considering various factors like high cost involved in tunnel boring / its
maintenance cost, cost of land acquisition, number of displaced/affected persons
and impact on heritage buildings etc. Option-1 with 1.72 km underground and
25.4 km elevated track was adopted.
9. The alignment of Lahore Orange Line is based on rigorous traffic engineering
modelling and parameters, including:
Origin-Destination Surveys (ODS)
Traffic Count Surveys (TCS)
Rider-ship Surveys (RS)
The alignment will:
Achieve maximum rider-ship
Minimize the land acquisition
Have no adverse effect on the historical buildings
10. Other salient features of Lahore Orange Line Metro Train project are as follows:
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Stations = 26 (Elevated = 24; Underground = 2)
Rolling Stock = 27 Train sets (One train-set comprises of 5 cars)
Ridership = Approximately 245,000 per day (estimated for first year of
operation)
Route = Ali Town to Dera Gujran
Stations location:
Sr.No. Name Of Station Sr.No. Name Of Station
1 Dera Gujran 14 Chauburgi
2 Islampark 15 Gulshan-I-Ravi
3 Salmatpura 16 Samanabad
4 Mahmood Booti 17 Yateem Khana / Bund road
5 Pakistan Mint 18 Scheme Morr / Salahuddin Road
6 Shalamar Garden 19 Shahnoor
7 Baghbanpura 20 Sabzazar
8 UET 21 Awan Town
9 Sultanpura 22 Wahdat Road
10 Railway Station 23 Hanjarwal
11 Lakshami 24 Canal View
12 Central station 25 Thokar Niaz Baig
13 Anarkali Station 26 Ali Town
11. To initiate Orange Line Metro Train Project, an open international tender was
floated on 29.01.2014 in Financing + EPC mode. Pre-bid conference was held
on 18.02.2014, which was attended by representatives of 11 foreign and 5 local
companies. On Bid submission date i.e. 21.04.2014 only two Chinese companies
namely CR-NORINCO JV and SINORAIL JV furnished their bids.
12. In the meeting of the President of Pakistan with Chinese Premier held on
19.02.2014 in Beijing, the Chinese Premier decided to fund the Orange Line
project with the condition that Chinese Enterprises will execute the project using
Chinese Equipment. He also declared it as a Chinese gift to Pakistan.
13. The International Tender was cancelled on May 12, 2014. An Inter-Governmental
Framework Agreement was signed on 22.05.2014 providing that Orange line
shall be fully designed, constructed and supervised by Chinese Enterprises
(which is a norm in all bilateral funding agreements). The Framework Agreement
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also inter alia required initiation of negotiations on Commercial Contract of
Orange Line.
14. Under instructions of the Chief Minister, on 26.05.2014, a reference was made
through EAD to the Chinese Government requesting for their concurrence that
selection of Chinese Enterprise may be done through an open competitive
bidding restricted to China.
15. On 30.05.2014 the Chinese Government informed that for projects using
Preferential Buyer’s Credit, the China Chamber of Commerce and Import and
Export of Machinery and Electronic Products (CCCME) shall provide a shortlist
of Enterprises (no more than three). The Pakistani proprietor shall tender from
this shortlist. In the history of China-Pakistan bilateral concessional lending,
Orange Line is the first project in which tendering process was followed. It is
pertinent to mention that Government to Government Agreements are exempted
from the operation of PPRA Rules. On 02.06.2014 a detailed Eligibility Criteria
and required evidence of bidder’s capability, experience and financial capacity
was sent to the Chinese side for recommending eligible Chinese Contractors.
16. On 24.06.2014, the CCCME recommended the same companies i.e. CR-
NORINCO JV and SINORAIL JV who had earlier participated in the international
tender for Orange Line project. On 24.06.2014, bids were invited from these two
companies. Technical bids of the bidders were opened on 18.07.2014. Financial
bids of the bidders were opened on 04.08.2014 after M/s NESPAK and CCCC
(A Chinese Consultant) declared them technically compliant. CR-NORINCO
emerged as lowest bidder with bid price of USD 2.139 Billion. Breakup of final
Contract Price is as follows:-
i. Contract Price of Civil Works= USD 531,681,818
ii. Contract Price of Consultancy Services = USD 24,000,000
iii. Contract Price of E&M Works (inclusive of 6% Withholding/Income Tax)
= USD 922,500,000
iv. Sub-total (a to c) = USD 1,478,181,818
v. Contingencies (only in case of unforeseen increase in work) = USD
147,818,182
vi. Total Price = USD 1,626,000,000
The final price of USD 1,478 Million is around 661 Million dollar less than the
bid price
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17. Chinese side agreed to sublet Civil Works of the project to Pakistan side resulting
in significant savings, which is again an unprecedented achievement. Significant
economies / price reductions achieved in E&M Work’s price. Effective
negotiations yielded project cost savings of approximately USD 660,818,182/-
with unprecedented support of the Chinese Government and gracious flexibility
shown by CR-NORINCO. Further, transparent tendering process of Civil Works
carried out by LDA yielded additional saving of PKR 5.97 Billion.
18. Cost of Orange Line is quite competitive when compared with similar projects
around the globe. Cost comparison of some of metros in the world on Per Km
basis is as below:
a) Orange line
i) Core project cost USD 1,478 M= USD 54.50 M per Km
ii) Core cost + Contingencies USD 1626 M= USD 59.95 M per Km
b) Mumbai (Completed in 2014) – USD 60.7 M per Km (adjusted)
c) Pune (Completion in 2018) – USD 62.21 M per Km (adjusted)
d) Jaipur (Completed in 2015) – USD 64.3 M per Km (adjusted)
e) Copenhagen (Completed in 2002) – USD 69.8 M per Km in 2002 prices
f) Jakarta (Completion in 2017) – USD 117.11 M per Km
According to latest research on the subject the per Km cost of Metro Trains
generally range between USD 50 Million and USD 100 Million.
19. Project Benefits
The Orange Line will provide important links between areas slated for new
development in the south and the major employment and education centres,
concentrated in the city centre and along the route such as UET. The benefit of
these transport links to a certain extent is reflected in improved journey times but
the actual perceived benefits of improved accessibility and flexibility is greater
than that which can be measured by journey times alone.
a. Reduction in Traffic
Reductions in Bus Flows at GT Road near University
2025 Two-way Hourly Bus Flows
Without OL With OL Reduction
Wagons 100 36 64
City Bus (Non AC) 97 8 89
Total 197 44 153
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Reductions in Bus Flows at Multan Road near Gulshan-E Ravi
2025 Two-way Hourly Bus Flows
Without OL With OL Reduction
Wagons 242 71 171
City Bus (Non AC) 61 - 61
City Bus (AC) 23 - 23
Provincial Mini Bus 4 4 -
Provincial Large Bus 179 120 59
Local Province Wagons 160 160 -
Local Province Ord 36 13 23
TOTAL 705 368 337
Total Potential Market for LRMTS (daily passengers)
Mode 2015 2025 Growth (% p.a.)
Bus and Wagon 3,411,000 4,313,000 2.4%
Car 3,073,000 4,842,000 4.7%
Motorcycle 1,732,000 2,339,000 3.1%
Rickshaw 1,266,000 1,575,000 2.2%
Total 9,482,000 13,069,000 3.2%
Results of Passenger Flow Forecast on Orange Line
Orange Line Initial Term
(2015)
Short Term
(2021)
Long Term
(2025)
Length (km) 26.2 26.2 26.2
Passenger Traffic Volume (10,000
person-time/day) 24.52 38.62 49.55
Average Travel Distance
(km/person-time) 8.1
——
8.3
Sectional Passenger Flow at Peak
Hours (10,000 person-time) 1.01 1.54
2.05
The tables show that there are considerable savings in buses with the OL in
place. The maximum saving is on Multan Road where a reduction of 337 buses
(2-way) can be achieved. Much of the saving can be attributed to the reduction
of long distance through buses – a move which also helps to provide relief for
the congested city centre area. Overall, the Orange Line is forecast to reduce the
total fleet of local buses (i.e. excluding long distance) in Lahore by 380 vehicles
(reducing total bus/wagon vehicle requirements in the city to around 3,770
vehicles).
b. Environment Benefits
Low greenhouse gas emission (e.g. chlorofluorocarbons)
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Reduction in carbon dioxide emissions as estimated through clean
development mechanism (145227.5 ton per annum pro rata – Delhi
Metro) c. Social Benefits
Reduction in congestion on the side roads
Less respiratory diseases
Reduction in accidents d. Economic benefits (Travel time + Vehicle Operating Cost Saving)
a) Ridership = Approximately 245,000 passengers/day
Direct Economic Benefits In first year of operation
Annual average over 30 years period a) Passenger Travel
Time Savings
PKR 9.29
Billion
USD 88
Million
PKR 29.5 Billion
USD 279.62
Million
b) Vehicle
Operating Costs Savings
PKR 5.62
Billion
USD 53.27
Million
PKR 9.87 Billion
USD 93.55 Million Total (a+b) PKR 14.9
Billion
USD
141.23
Million
PKR 39.38 Billion
USD 373.27
Million
b) Economic benefits of approximately Rs. 123 M per day
c) Train speed (Max) = 80 Km/h
d) Train Speed (Commercial) = 34.8 Km/h
e) End to End travel time = 45 Minutes
f) End to End present travel time = 2 to 2.5 Hours
g) Reduction in congestion on the side roads
20. Tendering
a) Open International Tender were floated on 29.01.2014 in Financing +
EPC mode. Pre-bid conference held on 18.02.2014 was attended by
representatives of 11 foreign and 5 local companies. On Bid submission
date i.e. 21.04.2014 only two Chinese companies namely CR-NORINCO
JV and SINORAIL JV furnished their bids.
b) In the meeting of the President of Pakistan with Chinese Premier held on
19.02.2014 in Beijing, the Chinese Premier decided to fund the Orange
Line project with the condition that Chinese Enterprises will execute the
project using Chinese Equipment. He also declared it as a Chinese gift
to Pakistan.
c) The International Tender was cancelled on May 12, 2014. Inter-
Governmental Framework Agreement signed on 22.05.2014 providing
that Orange line shall be fully designed, constructed and supervised by
8
Chinese Enterprises. The Framework Agreement also inter alia required
initiation of negotiations on Commercial Contract of Orange Line. Under
instructions of the Chief Minister, on 26.05.2014, a reference was made
through EAD to the Chinese Government requesting for their
concurrence that selection of Chinese Enterprise may be done through
an open competitive bidding restricted to China.
d) On 30.05.2014 the Chinese Government informed that for projects using
Preferential Buyer’s Credit, the China Chamber of Commerce and Import
and Export of Machinery and Electronic Products (CCCME) shall provide
a shortlist of Enterprises (no more than three). The Pakistani proprietor
shall tender from this shortlist. In the history of China-Pakistan bilateral
concessional lending, Orange Line is the first project in which tendering
process was followed. On 02.06.2014 a detailed Eligibility Criteria and
required evidence of bidder’s capability, experience and financial
capacity was sent to the Chinese side for recommending eligible
Chinese Contractors.
e) On 24.06.2014, the CCCME recommended the same companies i.e.
CR-NORINCO JV and SINORAIL JV who participated in our
international tender for Orange Line project. On 24.06.2014, bids were
invited from these two companies. Technical bids of the bidders were
opened on 18.07.2014. Financial bids of the bidders were opened on
04.08.2014 after M/s NESPAK and CCCC declared them technically
compliant. CR-NORINCO emerged as lowest bidder with bid price of
USD 2.139 Billion. Breakup of final Contract Price:-
i) Contract Price of Civil Works= USD 531,681,818
ii) Contract Price of Consultancy Services = USD 24,000,000
iii) Contract Price of E&M Works (inclusive of 6%
Withholding/Income Tax) = USD 922,500,000
iv) Sub-total (a to c) = USD 1,478,181,818
v) Contingencies = USD 147,818,182
vi) Total Price = USD 1,626,000,000
Chinese side agreed to sublet Civil Works of the project to Pakistan side
resulting in significant savings- again an unprecedented achievement.
Significant economies / price reductions achieved in E&M Work’s price.
Effective negotiations yielded project cost savings of approximately USD
9
660,818,182/- with unprecedented support of the Chinese Government
and gracious flexibility shown by CR-NORINCO. Transparent tendering
process of Civil Works carried out by LDA yielded a further saving of PKR
5.97 Billion.
21. COMPARISON OF COST BETWEEN ORANGE LINE AND OTHER WORLD’S
METRO COST
Cost comparison of some of metros in the world on Per Km basis is as
below:
Sr.# Name of Metro Cost in million USD / Km
a Orange Line
Core project cost USD 1,478 M
Core cost + Contingencies USD 1626 M
54.50
59.95
b Mumbai (Completed in 2014) 60.7 (adjusted)
c Pune (Completion in 2018) 62.21 (adjusted)
d Jaipur (Completed in 2015) 64.3 (adjusted)
e Copenhagen (Completed in 2002) 69.8 in 2002 prices
f Jakarta (Completion in 2017) 117.11
According to latest research on the subject the per Km cost of Metro Trains
generally range between USD 50 Million and USD 100 Million.
22. Resource Prioritization
Health & Education sectors are on top priority on Government’s agenda.
Sometimes, it is falsely reported that these sectors are not in the priority list of
the Government. The spending of funds during the year is governed by various
factors and also reviewed on monthly basis. Different schemes by the
Government are being carried out at different stages. New schemes in other
departments like Health and Education involved various steps which takes time
to materialize and transfer the benefits at grass root level. Sometimes delay
occur in conceiving the scheme, studies conducted for project, delays in
procurement process etc. majority of the projects are continuously funded in
many years. During planning & feasibility not huge funds are required but after
approval & research instantaneous funding is required to kick start a new project.
Keeping in view the efficiency required for a project, re-appropriation is being
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done for a project. Re-appropriation of funds is basically a need based
mechanism for project which is under direct control of Administrative Bodies &
Provincial Secretaries within a department. The purpose is to ensure the
presence of cash flow as per requirement of a certain project realizing the need
& the funds are later re-cooped after the funds for the same project are released.
Glimpse of fund allocation on Education, Health, development and non-
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