Unpaid Funds – Peshawar BRT at Risk of Closure

0 1,506

Peshawar Bus Rapid Transit (BRT) is at risk of closure as Khyber Pakhtunkhwa (KP) government has remained unable to clear over Rs. 500 million dues of the operating companies. BRT caters to around 300,000 commuters in the provincial capital on a daily basis.

Daewoo Pakistan operates the transit project along with privately-owned LMK Resources Pakistan, which is responsible for the intelligent transport system, fare collection, and station management. Both companies have taken up the issue with the provincial government, stating that the government owed them over Rs. 500 million. “The government company TransPeshawar has the required funds at its disposal, but political interference in its affairs is causing a delay in the payments,” the officials told media.

Station Management Company’s Dues 

Meanwhile, the Station Management Company of BRT has also written a letter to the chief minister for clearance of dues. The media reports stated that in its letter, the company has requested the release of Rs. 11 crores, 47 lacs funds. The reports suggested that the companies have raised the issues with the government multiple times, but it has still not been resolved.

Government Statement 

Commenting on the situation, the Caretaker transport minister of KP, Shahid Khan Khattak, said he doesn’t know about the development. “You need to talk to an additional chief secretary in whose domain lies the funds issue,” he told the media.

The companies have told the provincial government that they are facing a financial burden due to the unavailability of due payments. “Until now, we have been able to face the burden and ensured timely payments to our subcontractors; however, it is becoming increasingly challenging to sustain things,” Daewoo highlighted in a letter. 

On the other hand, the sources claimed that TransPeshawar has hundreds of millions of rupees at its disposal, while requesting additional funds is also in process. 

What do you think about the possible closure of Peshawar BRT? Please share your thoughts with us in the comments section. 

 

Google App Store App Store

Leave A Reply

Your email address will not be published.