Karachi Mass Transit Project dropped

Karachi: The much publicised $600 million Karachi Mass Transit Project (KMTP) has finally been wrapped up.

Reason: bickering over the control of the project between the Sindh provincial government and City District Government Karachi (CDGK). The Asian Development Bank (ADB) which had undertaken to finance the project has cancelled the agreement it had earlier entered into with CDGK.

Sources in the Sindh Planning and Development department said that earlier ADB had approved US $1.1 billion for the project. But later it had been cut by US $350 million and revised it by US $600 million, owing to the official indifferences.

The hostile relationship amongst both governments has thwarted all efforts made for the project, they said. They further added the ADB officials had expressed grave concern over the issue during several meetings with the Sindh government, CDGK and other relevant officials and had also stopped process of funds.

Therefore, a team, comprising Nazar Hussain Mehar, Additional Chief Secretary, P&D department, Ghulam Ali Pasha, Additional Chief Secretary, Finance department, Malik Islam, Project Director, KMTP and other officials had visited ADB head office, Manila to convince ADB officials to restore all activity related to the project.

However, ADB is of the view that if the fund was released for the project, it would be pointless because the issue of controlling the project is still not decided, they added. To a question, they said the high-ups posted in Finance and P&D departments were reluctant to give complete control to the CDGK, saying the Sindh government should deal the project.

Therefore, the notification to establish Sindh Mass Transit Authority (SMTA) was issued by the authority concerned, which later was withdrawn after strong reaction by the CDGK. They further said the City Nazim Mustafa Kamal called President Asif Ali Zardari and expressed his concern over the establishment of the SMTA.

He has also requested the president to intervene for resolving the matter, sources maintained. They said that ADB would reallocate these funds for the project of any other country and added that if both governments did not quarrel for taking control of the KMTP, ADB would not stop funds for the project.

They termed it as a huge loss for the country especially for the Karachiities, who are suffering due to inadequate public transport. Furthermore, they said that another reason for its annulment was that the government had not reviewed all the practical options of the project and had failed to convince ADB officials about the significance of the project for the commuters.