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Strengthening ties with China: IDB provides $39m loan to PR for 530 new wagons

ISLAMABAD: With the financial collaboration of Islamic Development Bank (IDB) worth $39.07 million, a signing ceremony for the procurement and manufacturing of 530 newly designed high capacity bogie wagons, including Brake vans, was held between the Ministry of Railways and Chinese Firm Dongfang Electric Corporation on Saturday.

Secretary and Chairman Railways, Samiul Haq Khilji and Vice President of Dongfang Electric Corporation Hu Weidong signed the papers.

Earlier, Federal Minister for Railways, Ghulam Ahmad Bilour read out the details of the agreement and expressed hope that in result of the said agreement, Pakistan Railways would get a chance to strengthen and boost its freight system. It would also be beneficial in terms of revenue generation and availability of employment opportunities at domestic level. It may be recalled that IDB is financing this project by providing loan by way of instalment sale. The instalment sale financing is for a period of 12 years after three-year gestation and mark up of 5.1 percent per annum. The country representative of IDB M Akhtar Bhatti was also present during the ceremony.

Khilji, while elaborating about the details of the agreement, said that these 530 high capacity wagons would be brought in completely knock down condition at a cost of $37.0 million in Pakistan Railways Workshops, Mughalpura. Here it would be finally assembled and manufactured locally. He said that it would help in upgrading and strengthening the freight system of Pakistan Railways.

Source: Daily Times

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