LAHORE: Lahore High Court’s decision of scrapping the signal-free corridor project has made the future of 27.1km Orange Line Metro Train and other projects uncertain.

A short-order by the LHC stopped on Friday the Lahore Development Authority (LDA) from launching mega projects calling powers of the LDA to launch such schemes unlawful and unconstitutional.

The LDA, officials say, was executing the Orange Line project under a joint venture with the China Railways and Norinko. The Chinese government approved a soft loan of $1.5 billion for Pakistan last year.

Officials said senior Chinese and Pakistani officials would sign a commercial agreement in the presence of the Chinese president during his visit to Pakistan. After this, the Exim Bank of China will issue the loan to Pakistan, a senior official told Dawn on Saturday.

Requesting anonymity, he said the government had decided that the LDA would get the project implemented as the LDA and its subsidiary – Tepa – had got expertise in the execution of mega projects such as the Lahore Metro Bus Project.

“Similarly, LDA/Tepa officials were also helping the execution of metro projects in Rawalpindi. Likewise, the government was also helping the local administration of Multan in planning and designing of the metro bus project. It will not be possible now for the government to get Metro Train project implemented,” the official said.

Another senior official said the Punjab government had been conveyed that the LHC decision would be challenged in the Supreme Court. The government has asked the LDA to plead the appeal vigorously. He said as the decision restricted LDA’s role in development projects, the authority would be unable to prepare PC-I and 2 of the Orange Line project to be launched in three months or so.

“If the project is delayed, the government will have to pay damages to the Chinese government under the agreement,” he said.

Published in Dawn, April 19th, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play