KARACHI: Sindh Cabinet has approved several financial allocations for various development projects, including Rs 29.379 billion for payment of government electricity bills, Rs 768.6 million for operation of 50 electric buses on city roads and subsidy of Rs 579.756 million for intra-district people’s buses.

Additionally, Cabinet has approved Rs 1.1 billion for construction of Link Road Interchange, Rs 33.956 million for Khirthar National Park boundary demarcation and fixing of boundary pillars, Rs 1424.720 million for reconstruction of three West district schools and Rs 115 million for restoration of Hindu Gymkhana.

Meeting was held under chairmanship of caretaker Chief Minister Justice (retd) Maqbool Baqar at CM House. Provincial caretaker ministers, chief secretary Dr Fakhre Alam, Chairman P&D Sahkil Mangnejo, and other concerned officers attended meeting. 

Chief Secretary Dr Fakhre Alam told Cabinet that an amount of Rs 300 million (Rs 10 million to each of all 30 DCs), may be provided to all returning officers/deputy commissioners for election expenditures. In case of any shortfall further funds may also be provided separately, on case-to-case basis.

Cabinet also approved an amount of Rs 168 million to be given to deputy commissioners to clear old liabilities of local bodies’ elections. HESCO, SEPCO and KE dues: Cabinet was told that central payment process against all Sindh government electric connections throughout province started in 2019. Lump sum budget was being fixed for payments every year. However, due to continuous increases in electricity prices and increases in Sindh government connections, allocated budget of Rs 41.5 billion is insufficient. Energy department said that against an allocated budget of Rs 41.5 billion, they have paid Rs 35.736 billion to HESCO, SEPCO and KE up to September 2023 and now they are left with only Rs 5.764 billion which was hardly enough for one and half months of electricity charges.

Cabinet was told that current monthly electricity charges on average come to Rs 5,300 million and for next eight months of current financial year, 2023-24, an amount of Rs 42,400 million [5300X8=42400 million] would be required up to June 2024.

Cabinet after deliberation approved an amount of Rs 29.376 billion so that power distribution companies could be made power bills of Sindh government up to April 2024.

Electric Buses: Provincial transport department has initiated Electric Bus Service, being operated by Telephone Industries of Pakistan under Rent to Own Model. Currently, 40 of 50 buses have been put into operation on three routes in Karachi, with 10 buses on standby. TIP has requested provincial government to formalise contractual commitments with them for operational Electric Buses, as well as an investment proposal. Project includes the supply and operation of Electric buses, development of Green Energy Facility and the development of Assembly Kit Plants for EVs in Sindh.

TIP has proposed ‘Rent to Own Financial Model’ for supply, operation and maintenance of Electric Buses, along with EV Charging, Depot Infrastructure and Alternative Energy Production. Under this model, TIP will invest 100 percent of funds required to supply and operate EV buses and charge public transport passengers ticket prices to be mutually agreed upon. Sindh government will have to provide monthly lease payment (rent to own) as agreed between parties on per-bus basis to TIP for lease, operations and maintenance of public transport for eight years.

Monthly payment for nine meters Electric Buses is $ 3,350 and for 12 meters, it is $ 4,500. Ownership of the buses would be transferred to Sindh government after eight years of bus operations. Cabinet has approved Rs 768.6 million per annum for 50 Electric Buses (215/per km x 50 x 71500) for eight years, inclusive of O&M and lease payments. Additionally, Cabinet has approved Rs 200 million to engage reputed consultants for technical, financial and legal evaluation of TIP Electric Buses’ proposal with budgetary allocations up to Rs 200 million.

Transport department proposed to increase fare of BRT Green Line (from Rs 15 to 30 and Rs 55 to Rs 70) and Intra-District Peoples Bus Service which caretaker CM turned down. Cabinet was told that BRT Green Line would be handed over to Sindh government in 2024.

Published in The Daily National Courier, December, 28 2023

Like Business on Facebook, follow @DailyNCourier on Twitter to stay informed and join in the conversation.