FAISALABAD (April 29 2008): Asian Development Bank will provide six million dollars from the Asian Development Fund for Lahore rapid mass transit system, while the Punjab government will provide 1.5 million dollars from its resources to launch the second phase of the project, which will be completed and commissioned by December.
According to official sources, the ADB has agreed to provide 150,000 dollars from its Technical Assistance Special Fund to launch the first phase of Lahore rapid mass transit system, which will be completed in July. The ADB sources mentioned that the project, on completion, would improve the Labourites quality of life.
The first phase of the project include project design and financing agreed upon by the Pakistan government and the ADB, detailed structure and terms of the transaction, pre-qualification and bidding documents for transaction, contract award, and negotiations with the lenders.
The ADB sources said that the expected impact of the first phase would be the initiation of a long-term transport system investment programme that would enable Lahore to make a greater contribution to national development. The ADB sources explained that the transaction advisory work would be carried out in the following three phases – preparation, implementation, and negotiation.
During the preparation phase, the transaction advisor would carry out technical and legal aspects, design the detailed structure and terms of the transaction market the transaction with potential investors and develop pre-qualification and bidding documents as well as the necessary contracts.
During the implementation stage, the transaction advisor would assist the government in obtaining any approvals and permits required, pre-qualifying potential investors, carrying out the bidding process, evaluating proposals, awarding the contract and holding negotiations, with the lenders. During the negotiation, the transaction advisor would support the government in winning the bidder to reach financial closure, official sources said.
Courtesy: business Recorder, 29/4/2008