Chinese firms to build Lahore metro line on BOT

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Chinese firms to build Lahore metro line on BOT

This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

The Punjab government (Pakistan) and a consortium of Chinese firms will develop the Lahore Orange Line Metro Train public private partnership (PPP) project.

The governments of Pakistan and China signed an agreement in May 2014 to start the project. Later in May this year the Executive Committee of the National Economic Council (ECNEC) gave a go-ahead to the project, which will be financed by a US$1.6 billion loan from China.

Specifically, the total project investment is estimated at Rs165 billion (US$1.61 billion).

According to sources, the 27-km-long metro line will be developed on a build, operation and transfer (BOT) basis and the concession contract will have a period of 25 years. 

The project will be handled by China Railway. The Chinese consortium has selected the Lahore Development Authority (LDA) for the project construction of track and other related works. Construction works are scheduled to begin by July 2015 and the project is expected to be completed between 22 and 26 months after that.

The new metro line, which will be the first in Lahore, will connect Raiwind, Multan Road, Mcleod Road, Lahore Junction Railway Station and the Grand Trunk Road. The project will have a total of 25.4 km elevated and a total of 26 stations.

The metro will have capacity for two trains running both up and down the track and will be capable to handle up to 30,000 passengers per hour. The project is expected to benefit from about 250,000 passenger a day at the beginning and 500,000 passenger a day by 2025.

Lahore, the capital city of the Pakistani province of Punjab, is one of the most densely populated cities in the world. It is also the second largest metropolitan area in the country.

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