Petition against metro train project

LAHORE : A division bench of the Lahore High Court on Thursday sought replies from the Punjab government and others on a writ petition challenging tendering process till award of contact of Orange Line Metro Train Project to CR-NORINCO, a Chinese company.A local lawyer moved the petition, stating that Metro Bus Authority now Mass Transit Authority violated PPPA laws while awarding contract to the Chinese company. The petitioner said no tendering process took place and contract was awarded to CR-NORINCO in violation of transparency and merit.  He said PC1 of the project was approved without acquisition cost and displacement cost in April, last year at $1.626 billion and ECNEC approved on 8th of May, 2015 but intentionally for contract purposes on 20th of April, 2015, $1.457 billion dollar was mentioned. And on August 25, it was revised to $1.626 billion intentionally for contract purposes, said the petitioner. 

He said about Rs50 billion of acquisition cost and displacement costs about Rs20 billion was not included in PC1. The petitioner further said that in view of clause 7 of the 20th April contract, the agreement can only be effective after signing of the loan agreement and loan agreement with Axim Bank was signed on January 2016 at high mark-up and without competition. The Orange Metro Line Project was not placed before the Punjab Provincial Assembly for approval while EIA decision from Environment Pollution Agency of 8th of July, 2015 was defective as department was short of staff and equipment and company whose prepared technical report was non-certified. The bench comprising Justice Abid Aziz Sheikh and Justice Shahid Kareem issued notices to all respondents and called for para-wise comments and report till March 07.