PESHAWAR: The provincial government and a Chinese firm on Wednesday agreed to construct US dollar 1.6-billion Circular Railway Project, interlinking Peshawar, Nowshera, Mardan and Charsadda districts.

The project would later be extended to Swabi district, and would also have a speedy railway service between Peshawar and Islamabad.

A Memorandum of Understanding in this regard was signed by Special Assistant to CM for Transport Malik Shah Mohammad Wazir and Country Head of China Communications and Constructions Corporation, Limited Waing Xiaoping at a ceremony at the Chief Minister Secretariat here, according to a handout.

The Chinese firm is a public sector major construction company with expertise in rail communication and infrastructure development.

According to the MoU, the Chinese firm would conduct a feasibility study inclusive of concept design and cost estimation, and will prepare a technical and financial proposal to the provincial government in respect of the development of the project. It would also provide technical specification to government for the soil investigation and survey.

The provincial government would be responsible for obtaining all approvals, land rights or other necessary permissions to enable the company to complete the feasibility work. The government will facilitate the company to fulfill its obligations and responsibilities by providing relevant local technical information and other necessary documents.

The financial model of the project has to be agreed upon between the parties prior to commencement of the project through an agreement to be signed after fulfilling all legal and codal formalities.

The speed of the train under the project will be 2,200 kilometres per hour.

Published in Dawn, August 4th, 2016