LAHORE, Sept 1: An agreement for the procurement of 75 locomotives is likely to be signed between Pakistan Railways and a Chinese firm by the end of the current month.

The firm will deliver 25 completely built-up (CBU) and 50 completely knocked down (CKD) locomotives under the agreement. The 25 locomotives could be put in operation soon after arrival while the rest would be assembled at the PR Locomotive Factory in Risalpur, an official of the Railways Ministry told Dawn on Monday.

Giving the breakdown, the official said the Chinese would deliver 15 CBU locomotives of 1,500HP, five each of 2,000HP and 3,000HP engines while 25CKD units would have 2,000HP and as many 3,000HP engines.

Five CBU locomotives of 3,000HP engines would be added to the PR fleet within 10 months after the contract effectiveness and could be put in operation soon after arrival while the remaining 70 locomotives would be delivered within three years.

The official said a letter of intent (LoI) was issued on July 31 in favour of the Chinese firm and an agreement for the procurement of new locomotives would be inked by Sept 30.

Two firms – the General Electric of the US and the Dongfang Electric Corporation of China – qualified the tender process through open bidding. The GE offered US $2,521,740.98 and DEC US $1,197,755.76 average price per locomotive. After evaluation of the technical specifications by PR engineers and a review by the high-level tender committee, the two qualified bidders were asked to quote cost of spares for the first intermediate overhaul, required during the first three-year operation of their locomotives along with principal assemblies and tools. Again a considerable difference was found between the maintenance cost of the two qualified bidders and the letter of intent was issued in favour of the Chinese firm that had already supplied 69 locomotives to the PR.