ISLAMABAD: The Capital Development Authority (CDA) on Tuesday asked the Punjab Metro Bus Authority (PMBA) to sign an agreement with it for sharing the subsidy on the metro bus service.
So far there is no agreement between CDA and PMBA to share the nearly Rs2 billion per annum subsidy to operate the service.
Last year, the federal government released Rs375 million to the CDA for sharing with the PMBA but in the absence of any agreement it could not utilise or hand over the amount to the PMBA.
According to the initial plan, the federal government wanted to share the subsidy with the Punjab government at the ratio of 50:50 in the same way both the governments shared the cost of the Rs45 billion project. However, the provincial government opposed the 50:50 formula and last year Chief Minister Shahbaz Sharif wrote to Prime Minister Nawaz Sharif requesting him to review it.
Punjab not ready to pay half the expenses for metro
The Punjab government was of the view that the formula should be based on the length of the metro bus track in Rawalpindi and Islamabad instead of the passenger load. Because of the row, the PMBA and the CDA could not sign an agreement so far.
“On Tuesday, we sent a reminder to the PMBA, requesting it to finalise the matter with us,” said an officer of the CDA, who requested not to be named. He said the letter was written ahead of a meeting between the federal and the Punjab finance ministers to be held in coming days.
Speaking to Dawn, PMBA general manager (operations) Ozair Shah confirmed the deadlock. However, he said the issue was being discussed at the higher level.
Damages to the metro bus stations
The PMBA general manager said a three-member committee was assessing the damages caused to the metro stations by the protesters. “I hope tomorrow the committee will finalise its report.”
Mr Shah said per day a revenue of around Rs2.5 million was collected from the metro bus service. “However, for the last three days, the service remains suspended.”
The pro-Mumtaz Qadri protesters damaged the metro stations located at Jinnah Avenue and Pakistan Secretariat. It is also not clear who will bear the cost of the repair.
The PMBA general manager said technically the CDA was supposed to repair the damaged metro bus stations.
“The CDA is supposed to carry out repair work in stations which are located in Islamabad,” he maintained.
However, a CDA officer said the civic agency had nothing to do with the project. “Since we were not given the control of the stations in Islamabad, we cannot be held responsible for the repair and maintenance work,” said an officer who also requested anonymity.
“Without signing an agreement with PMBA, we cannot take the responsibility of the repair work.” However, he said in case the federal government, directed the CDA, the repair and maintenance work would be carried out as a special case.
Published in Dawn, March 30th, 2016
Comments (8)
The days are near when these buses wil be found in junkyard like the green bus project in Karachi. The transport mafia won't allow such projects to prosper.
2nd,January 2030. Punjab government auctioned about 500 metro buses which were imported by the then PML(N) government with built in commission. The successful bid amount exposed the losses in billions of rupees. FIA has been entrusted with the task to discover the evil genius who played havoc with the public money. The reasons for closure of this much publisized public transport project must be haunted and made public.
@Philosopher (from Japan) yes. True. Particularly in Karachi where KP connected mini bus mafia even removed the remaining railway tracks of circular railway.
Extending subsidies of such proportions to facilitate a small segment appear like a sin when we see huge masses are deprived of an access to drinking water
More money down a black hole...once these buses have finished their working life who will pay for replacement stock? Another white elephant from Nawaz and Co.
And they don't have money for schools, hospitals, clean water etc etc. What a pathetic govt.
System cost Rs45 billion.
Collects 2.5 million a day, but loses Rs6 million a day.
Maintainence,renovation and replacement of rolling stock not budgeted for.
Meanwhile real priorities are ignored.
Only in Pakistan !
PHILOSOPHER (FROM JAPAN) This is a mismanaged project & has noting to do with the transport mafia.