KARACHI, Dec 23: The government will float "municipal bonds" through the proposed Karachi Urban Transport Corporation (KUTC) to generate funds for the revival of Karachi Circular Railway (KCR).

"The floating of the bonds would generate Rs 3.5 billion required for the revival of the KCR," state minister for railways Ishaque Khan Khakwani said on Thursday. Prime Minister Shaukat Aziz will inaugurate the KCR on Jan 15.

Speaking at a Press conference at the Railways DS office, he said as a first step towards the revival of the KCR, the federal government would be asked to inject funds which would be paid back after generation of funds from the municipal bond.

The minister spoke about the decisions taken at a meeting of the implementation committee of the task force on revival of KCR. The task force has been set up on the directives of the prime minister.

The proposed Karachi Urban Transport Corporation, he said, would handle all the work pertaining to streamlining of the entire urban transport system, and as a first component, the KCR revival would be tackled by it.

Speaking about the floating of municipal bonds, the minister said the government would hire services of an investment bank, a corporate law firm and a commercial bank to suggest ways and means to float this bond.

"The government will invite interested firms shortly and would shortlist pre qualified firms in the next meeting of the implementation committee on Jan 15. About the KUTC, he said it would be an independent entity and would be owned by the provincial government and its chief would be from the private sector, having expertise in transport sector. The government would also have some representation on it to keep a check on its working.

"The corporation would be established through a bill to be moved in the Sindh Assembly soon," he said. Speaking about the progress on revival of the KCR, the minister said that the service of KCR from City Station to Malir would start in mid of next month. The entire revival of it would be carried out in 18 months.

"In the first phase, 30 wagons would be inducted in the KCR on five rakes and these are being built in the Lahore workshop," he said. For a complete revival of the KCR, he said, construction of underpasses and flyovers would be carried out. Moreover, 22 level crossings would be maintained and communication system would be set up.

He said once the KCR is revived, transport problem of the metropolis would be resolved to a greater extent as it would carry around half million commuters daily. He said after the revival of the KCR in the first phase, the Quaid-i-Azam Terminal would be connected with the Drig Road and few other spurs in the second phase.

Meanwhile, railways minister Mian Shamim Haider on Thursday briefed the chief minister about the steps taken to improve the railways network and said that Prime Minister Shaukat Aziz will inaugurate KCR on Jan 15.

Dr. Arbab Ghulam Rahim underlined the need for improving the system of railways in the interior of Sindh on modern lines. Chairman Railways and state minister for housing and works Sardar Asif Nakai were also present.

Meanwhile, the railways has prepared a project costing Rs 55 crores to repair and improve tracks from Mirpurkhas to Khokharapar in Sindh to reopen rail service across the border to Monabao in Indian Rajasthan province. -Agencies