A meeting of the PPP's policy board on Wednesday decided to initiate bidding for the Yellow Line bus rapid transit system (BRTS) afresh after a Chinese firm remained unable to secure financing for the mass transit project.

The decision was taken during the 26th meeting of the Public-Private Partnership Policy Board chaired by Sindh Chief Minister Syed Murad Ali Shah, according to a statement issued by the provincial government's spokesperson.

The meeting, which was attended by provincial ministers, advisers and MPAs, took some important decisions to expedite the procedures for the construction of Yellow and Blue Lines BRT and improve functioning of other development projects.

The board was informed that the Sindh Transport and Mass Transit Department (TMTD) had launched the Yellow Line project through an international competitive bidding process.

A Chinese firm and the TMTD signed the concession agreement for the project in September 2016.

However, the project faced delays after the Chinese firm remained unable to secure financing for the Yellow Line from Chinese Banks despite efforts in this regard.

As per the Sindh PPP Act, the private party is required to achieve financial close within 12 months of signing the agreement.

Because the Chinese firm remained unable to do so, the policy board approved the scrapping of the existing procurement process under 'PPP mode'.

"The board... directed the PPP unit to start bidding for the project afresh so that it could be started," read the statement.

The 26.5-kilometre-long Yellow Line project — from Landhi to New M.A. Jinnah road — is to be built with an estimated cost of Rs14.4 billion with 104 new buses on the route, Dawn had earlier reported.

Earlier this month, the World Bank had proposed $400 million for the Karachi Urban Mobility project aimed at improving urban mobility, accessibility and road safety in Karachi.

Under the project, the WB would construct the Yellow Line corridor, including development of infrastructure, rehabilitation and BRTS construction.

Blue Line project

The meeting was informed that two bids were submitted for the Blue Line BRT project after its solicitation process was initiated as international competitive bidding in February earlier this year.

Both the bidders were technically qualified and the financial bids were opened. However, the project was put in contravention after one of the private parties raised complaints, the handout said.

On the advice of the Sindh chief secretary, the policy board set up a 'complainant redressal committee' to address the grievances of the bidder consortium. It also directed the PPP unit to take all the decisions in time so that the project could be started.

The 11.80km-long Blue Line project — from Gurumandir to Sohrab Goth — is to be built with an estimated cost of Rs8 billion.