ISLAMABAD The Jeddah-based Islamic Development Bank (IDB) has agreed to provide $140 million for replacement of decades-old and obsolete signalling system of Pakistan Railways.

Under the agreement, the bank would finance the procurement, installation and commissioning of equipment to establish modern computerised signalling system including training, project supervision, consultant and corresponding project contingency.

Minister for Railways Haji Ghulam Ahmad Bilour confirmed this development and said the project would be completed by 2012 and under the agreement, Automatic Train Protection (ATP) system would be installed in 160 locomotives.

'Most of the existing signalling equipment consists of very old mechanical gear. The relay interlocking system installed in 1960s at 40 stations has also outlived its normal life,' he added.

'With the installation of modern signalling system, Pakistan Railways will enter into new era,' he said.—APP