PESHAWAR, Feb 5: Escalating costs have thrown plans for a major bus terminal in the city into jeopardy. Initially, the bus terminal was to be built at a cost of Rs500 million. But a city district government official said the project would now cost Rs1 billion on account of higher costs.

Sources said that the city district government had already taken Rs500 million loan with an average 11 per cent mark-up from the Bank of Khyber for the construction of bus terminal at the Haji Camp.

Financial wizards in charge of the scheme have already spent Rs50 million on preparation of feasibility reports and so-called consultancy work of the project.

Sources said the district government was in a quandary over the new terminal’s construction.

They said District Nazim Haji Ghulam Ali was considering the option of abandoning the present site spread over 140 kanals and constructing a bus terminal on a ‘suitable’ piece of land in the rural suburb of the provincial capital.

However, transporters say the existing site was adequate enough to cater to the needs of the transporters and commuters alike.

According to a transporters association, the district government generates Rs1.2 billion annually by auctioning bus stands, but all the three major bus terminals of the city were in a bad shape. In 1998, the provincial government drew up plans to build an ultra modern bus terminal at Haji Camp along the Grand Trunk Road and the then Peshawar Development Authority was directed to undertake work on the project.

Officials said that according to the PC-I the estimated cost of the project was Rs500 million and the government obtained a loan from the Bank of Khyber.

Despite the loan the project was put in cold storage. Later the previous city district government revised the PC-I of the project and consultancy work was handed over to a local firm.

The government had approved PC-I of the project about two years ago and estimated cost of the terminal was Rs950 million, but due to non-availability of resources the project was delayed.

Quoting District Nazim Haji Ghulam Ali, officials said that financially the project was not feasible and directed the concerned department to revise the cost of the project.