KARACHI, Oct 1: The implementation of Karachi Mass Transit project was discussed at a meeting held with the committee constituted by the Federal Government for the purpose on Friday.

The committee was formed on the recommendation of Sindh government to interact with the seven pre-qualified firms to implement KMT project for construction of 15.2-Km Corridor-1, from Sohrab Goth to Tower, on build, operate and transfer (BOT) basis.

Karachi DCO Mir Hussain Ali apprised the meeting of the need and mandate of the committee, and invited director-general, Karachi Mass Transit Cell, Malik Zahirul Islam, to explain the bidding process and the city government's efforts made since March, 2003.

He informed the meeting that in response to the EOI invitation, 22 firms showed interest in the project, and only eight were pre-qualified and the project document, duly reviewed by the CDGK consultants, was sent to them.

Later, a pre-bid meeting was arranged for interaction with the bidders to facilitate them in submission of bids, which was attended by almost all the pre-qualified firms, he said.

Only two firms, American Maglev Technology Inc, USA, and the China National Machinery and Equipment Corporation Group (CNMEG), submitted their proposals, and the same were considered as non-responsive.

The City Nazim Naimatullah Khan on the occasion explained the circumstances under which the city government had to sign a preliminary implementation agreement with CNMEG.

The agreement was initiated in furtherance of a memorandum of understanding signed by the Sindh governor and CNMEG on Sept l6, 2003, for Priority Corridor-2 (Orangi Township to Cantt Station), in which it was categorically mentioned that if no BOT offer was received for Priority-1 Corridor, then credit financing facility would also be available for the same corridor, the nazim said.

He further explained that the agreement with CNMEG was also signed in due consideration of the friendly relations with China and of a preferential loan agreement signed during the visit of President Gen Musharraf to China last year.

Speaking at the meeting, Sindh Planning and Development Minister Shoaib Bukhari expressed his reservation on the procedure proposed by the deputy chairman, Planning Commission, and was of the view that this would delay the implementation of the project under the BOT.

He said that preliminary implementation agreement signed between CDGK and CNMEG was in furtherance of the MoU signed by Sindh governor and the firm. The minister also pledged the support of Sindh government for the project.

Mr Bukhari observed that not a single project was ever initiated or completed on BOT basis in the last 57 years in the country, adding that there was no justification of undertaking the project on BOT basis, as even in New Dehli such projects were completed with credit financing. -APP