KARACHI, April 8: The Chinese Mechanical Corporation, seeking revival of the Karachi Circular Railway, is still awaiting for finalization of a deal for launching the project.

A delegation of the CMC, headed by its vice president, Ms Kin Roi Jan, met the transport minister, Adil Siddiqui, and informed him that at least 30 engineers of the firm were on their way to Karachi to prepare a feasibility report on the revival of KCR, and the design of the KCR might be modified.

Sindh planning and development minister Shoaib Bokhari, Senator Babar Ghouri, EDO transport Dr Tahir Soomro, D-G KMTP Malik Zaheerul Islam and other officials were also present.

A spokesman for the transport minister claimed that the head of the team complained that they were still in the dark about the finalization of a deal on the KCR, and they did not know as to whom they should contact.

She, however, hoped that the MoU would be finalized soon.

The transport minister assured all possible assistance to the delegation on the revival of the KCR.

“We have already wasted millions on the mass transit programme and due to inefficiency and lethargy on the part of some people, work could not be initiated,” the spokesman quoted the minister as saying.

Dr Tahir Soomro told the meeting that due to delays in the mass transit programme, its cost had surged to Rs442 million.

Sources in the transport department said that the Chinese firm had earlier shown an interest in the transport sector and the circular railway.

The delegation raised certain questions when they were given copies of some previous studies on the KCR.

The sources said the delegation was also interested in reviewing the economic situation of the country with regard to foreign investment and the potential of revival of the KCR.

The circular railway project was shelved as the federal government denied a grant of Rs20 billion to the Sindh government some seven months back.

It was shelved after a presentation on the project made to the president in a meeting in Karachi in September 2002. The federal government had observed that it was unable to provide funds for the revival of KCR.

Adil Siddiqui, after assuming charge as transport minister, attached importance to the revival of KCR and also went to China in this regard.

Before his departure for China, he had stated that he wanted revival of the KCR, and any flaws in the project would be removed as the project was in the extreme interest of the people.

A senior official in transport department stated that the CMC wanted to carry out a separate study on the project at an estimated cost of $3 million.

He said the study would be carried out independently by the CMC representatives and the transport department officials would provide them any assistance, if they needed.

About the new study, he said it had been mutually agreed upon by the company and the Sindh government that the cost of the study would be incurred by the CMC and after its completion, it would be the prerogative of the Sindh government to allow the company to operate the KCR on BOO basis or invite fresh tenders.

The provincial government had spent more than Rs3 billion on construction of flyovers on various railway level-crossings in the city for an uninterrupted flow of the circular railway. Besides, the government has also spent Rs322.5 million on many studies for the mass transit plans, but nothing was on the ground for implementation of the project, the sources said.