LAHORE, Feb 19: The Traffic Engineering and Transport Planning Agency has referred the Light Rail Transit Project to the Economic Affairs Division after upgradation for permission for investment from Japan and China.

The cost of the project is likely to increase by some 50 per cent due to over 10 years delay in its execution. Instead of the previous cost estimates of $500 million, it is likely to cost some $750 million due to increase in the cost of the project components.

Tepa chief engineer Khushhal Khan told Dawn that the agency had referred the project to the Economic Affairs Division because it could not negotiate for foreign investment without the government permission.

He said the agency had decided to invite fresh bids for the project because the private sector Monolite consortium had failed to start work on it despite repeated extensions in deadline. The last extension allowed to it had expired in December.

He said the chief minister was taking interest in the project, and the Japanese and Chinese were ready to finance it. The Japanese were interested in the project because the JAICA had spent some $200 million on its study and planning.

Former prime minister Benazir Bhutto had also signed an agreement for its execution with Japan in 1996. It, however, could not be executed due to the dismissal of her government.