Center spends Rs450 million on hiring consultants for ML-1SUCHI News

Suchi News

Islamabad- The federal government will spend Rs450 million for hiring consultants for the preparation of management-HR structures, business development and cash flow models and its implementation for the improvement of Karachi to Peshawar Main Line-1 (ML -1) under China- Pakistan Economic Corridor (CPEC).

The Central Development Division (CDWP) has approved the China-Pakistan Economic Corridor Support Project (2nd Revised) at a cost of Rs909.285 million – the main component of which is the recruitment of consulting firms and employee wages, a source. tell the Nation. For the hiring of consulting companies – a portion of Rs450 million, for the payment of salaries and allowances – Rs383.373 million, while the rest will go to other parts of the project, said the source The first PC-I of the project was approved by the Central Development Working Party (CDWP), in 2015, at a total cost of Rs252.0 million without FEC. The project aims to establish a China-Pakistan Economic Corridor (CPEC) Support Secretariat in the Ministry of Railways. The 1st Revised PC-1 of the project was approved by DDWP, in 2020 at a total cost of Rs910.347 million and FEC of Rs198.0 million. Now CDWP has renewed PC-I at a cost of Rs909.285 million.

According to the source, the main reason for the revision of the PC-1 is the hiring of consultants for the preparation of Management and HR Structures and Business Development and Financial Modeling for the improvement of the ML-1 and their performance. Review of salary packages according to the new Project Payment Plans (PPS) issued by the Finance Department and staffing estimates according to the needs of the project.

The 2nd Revised Project envisages the establishment of a Project Management Unit (PMU) in the Ministry of Railways and a Project Implementation Unit (PIU) in Lahore, for efficient and effective implementation of CPEC on the ML- 1 of Pakistan Railways. These activities include supervision and monitoring of projects such as preliminary design, cost estimation, preparation of PC-1, monitoring and scheduling of bids for EPC contract(s), and monitoring and communication during the implementation of the project, and for this. purpose, a special provision was made in PC-1 for employment of labour.

The main objective of the project is to establish/strengthen the Project Management Unit (PMU) in the Ministry of Railways, Islamabad and the Project Implementation Unit (PIU) in Pakistan Railways, Lahore for overall coordination and implementation of project of China-Pakistan Economic Corridor. The project will facilitate, coordinate, monitor and evaluate the program and projects related to ML-I; providing a much-needed framework for multi-stakeholder coordination and a consultative, ‘informed’ approach to trade and transport reform and policy ; improve capacity and provide policy and management advice to support the Government’s modern transport and energy development plan in the context of regional connectivity. In addition, it will enable Pakistan Railways to use new methods of project implementation and financing and use modern sources of financing; providing secretarial services for the procurement of experts in the field; oversee the preparation and implementation of administrative/management changes to achieve the desired benefits of the ML-1 upgrade; Hiring the services of a consulting firm/consultant/individual consultant/consultant for the preparation and evaluation of tender documents/RFPs, design/research, tender evaluation /RFPs and for third party evaluation/proof of feasibility, design/analysis, project evaluation, other documents. and assist the PIU in any matter related to the project, etc.

The special committee of the Planning Commission asked the sponsors of the project to clarify that an amount of Rs239.5 million has been used until June 2022 by the sponsors since the beginning of the project in 2015. as of Jan 2016 to June 2022 only Rs239.5 was used which is 26.32 percent of the original guaranteed price. It was also requested that the sponsors be informed about the implementation of the Project Management Unit/PIU to date as evidence for the review of the project. The cost of hiring the consultancy services provided at Rs450.0 million needs to be estimated and should be realistic – since all consultants employed by the MoR/PIU.


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