BEIJING, May 29: China will send eight locomotives to Pakistan next week to help in modernizing the country’s railway system.

Under a bilateral agreement, another seven locomotives will be made available to Pakistan railways by the end of July, sources told APP here on Thursday.

They said Chinese company Dongfang Electric Corporation would provide 69 modern locomotive engines worth $100 million to Pakistan within two years.

Under the agreement, 15 complete locomotives are to be manufactured in China, while the rest will be assembled in Pakistan. China will provide the spare parts and technology.

The first eight units, equipped with internal-combustion engines, rolled off the production line this week at the Dalian Locomotive Plant and were ready for shipment to Karachi, the sources said.

“Because of the application of advanced technologies, the locomotives boast special features such as lower oil consumption and maintenance costs,” they said.

Under the agreement, the Chinese government has committed to provide a $200 million loan on soft terms for the purchase of 69 locomotives and 175 coaches.

In March, China handed over 28 new passenger coaches to the railways, while 14 coaches were provided in July last year.

According to the sources, the railway authorities are also considering to purchase rail track from China as it has offered a loan on soft terms for the purpose.

A memorandum of understanding was signed recently between the two countries under which a Chinese company would provide 1,300 freight coaches to the Pakistan railways.

Of the coaches, 420 would be manufactured in China in one year and 880 would be produced at the Moghalpura Railways Workshop in the next two years.

Chinese companies have also shown their willingness to help replace the decades-old railway signalling system.—APP