Project Name Karachi Bus Rapid Transit Red Line Project
Project Number 47279-002
Country / Economy Pakistan
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0649-PAK: Karachi Bus Rapid Transit Red Line Project
Green Climate Fund US$ 11.80 million
Loan 3799-PAK: Karachi Bus Rapid Transit Red Line Project
Ordinary capital resources US$ 235.00 million
Loan 8366-PAK: Karachi Bus Rapid Transit Red Line Project
Agence Francaise de Developpement US$ 71.80 million
Loan 8367-PAK: Karachi Bus Rapid Transit Red Line Project
Green Climate Fund US$ 37.20 million
Loan 8368-PAK: Karachi Bus Rapid Transit Red Line Project
Asian Infrastructure Investment Bank US$ 71.80 million
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP4: Making cities more livable
OP6: Strengthening governance and institutional capacity
Sector / Subsector

Energy / Renewable energy generation - biomass and waste

Transport / Transport policies and institutional development - Urban public transport - Urban roads and traffic management

Gender Effective gender mainstreaming
Description

The proposed project will help increase the use of quality public transport in Karachi by delivering the 26.6-kilometer (km) Bus Rapid Transit (BRT) Red Line corridor and associated facilities, directly benefiting 1.5 million people. The project is economically justified by major time savings for BRT passengers; vehicle operating cost savings; and better air quality and reduced carbon emissions through an innovative waste-to-fuel scheme, which will improve the public health and mitigate climate change. It will also make Karachi safer, greener, and more inclusive and competitive.

The project is aligned with the following impact: quality of life in Karachi improved. The project will have the following outcome: use of quality public transport in Karachi increased.

Project Rationale and Linkage to Country/Regional Strategy

Karachi is Pakistan's largest city and its main seaport and economic and financial center. The population of this fast-expanding megacity was estimated at 15 million in the 2017 census, and 23 million for the metropolitan area. Karachi is one of the most densely populated cities in the world and is consistently ranked as one of the world's most unlivable cities, largely because of traffic congestion and induced air and noise pollution. Car and motorcycle ownership is still low but fast-increasing because of a growing middle class. With other factors such as weak traffic management and inefficient public transport, rapid motorization worsens congestion and pollution. Karachi is one of the largest cities in the world without a formal public transport and mass transit system, and until 2015, large investments in flyovers reflected the prioritization of private road transport over public transport.

Karachi's transport system does not deliver mobility for all and is marked by long commute times, the rise of private and paratransit modes, and the decline of public transport (Table 1). Services are provided by paratransit vehicles and about 4,000 privately owned buses, which together serve 2.8 million passengers daily. These weakly regulated services are irregular and lack designated stops and customer standards. Drivers compete and pull over to pick up passengers at will, or wait idling on the side of the road until their vehicles are full, worsening congestion and impairing safety. During peak commute times, it is common for passengers to sit on the roof or hang from the side of moving vehicles. Vehicles in this informal network tend to be old and poorly maintained, leading to increased emissions and higher operating costs. Services tend to be costly for the urban poor, as customers must pay for each transfer between modes. Therefore, 40% of all city trips are still being made on foot. Karachi's poorest, women, children, elderly, and people with disabilities would benefit from a safe, efficient and accessible public transport system.

Impact

Quality of life in Karachi improved

Project Outcome
Description of Outcome

Use of quality public transport in Karachi increased

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Red Line BRT corridor and associated facilities constructed

BRT operations established

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Karachi
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The environmental impact assessment (EIA) has been prepared by TMTD in accordance with ADB's Safeguard Policy Statement (2009). Adequate mitigation measures are incorporated into project design and will be implemented through an environmental management plan, which includes a capacity building and training program for TransKarachi project staff, and contractors during pre-construction and construction stages. The draft EIA was disclosed on the ADB website on 30 May 2018.
Involuntary Resettlement A draft resettlement plan has been prepared in consultation with the affected persons and relevant agencies. This will be updated following the completion and approval of the detailed design. TransKarachi will be responsible for updating and implementing the resettlement plan, on behalf of SMTA, with support from the consultant team for resettlement under the PDA loan.
Indigenous Peoples The project will not affect any indigenous communities and, accordingly, no indigenous peoples planning documents are required.
Stakeholder Communication, Participation, and Consultation
During Project Design

UNDP will participate to the project design, mainly through stakeholder engagement process and inclusive infrastructure design (i.e. technical design including inputs from future users), including awareness campaigns.

Under ADB Cluster TA and PPTA, a bus industry transition process will be initiated through negotiations with existing private bus operators, to include them at early stages in the BRT operational design.

During Project Implementation

The bus industry transition process, initiated during project design, will continue with the objective that current bus operators will become the operators of the new BRT system.

For operators not participating to future BRT operations, a fleet scrapping and compensation mechanism will be set up and financed under the loan.

Business Opportunities
Consulting Services All consultants will be selected in accordance with ADB's Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers (2013, as amended from time to time). A total of 2,602 person-months will be required.
Procurement Advance contracting and retroactive financing will be considered for consulting services and civil work packages, and if approved by ADB, undertaken in conformity with ADB's Procurement Guidelines (2013, as amended from time to time) and ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).
Responsible ADB Officer Wright, Lloyd F.
Responsible ADB Department Sectors Group
Responsible ADB Division Transport Sector Office (SG-TRA)
Executing Agencies
Sindh Mass Transit Authority (SMTA)
TransKarachi Company
Timetable
Concept Clearance 06 Dec 2013
Fact Finding 06 May 2018 to 21 May 2018
MRM 25 Jun 2018
Approval 05 Jul 2019
Last Review Mission -
Last PDS Update 23 Jul 2019

Grant 0649-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Jul 2019 19 Jun 2020 06 Oct 2020 30 Jun 2024 30 Jun 2026 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 11.80 Cumulative Contract Awards
ADB 0.00 21 Jul 2023 0.00 3.64 31%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 11.80 21 Jul 2023 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 3799-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Jul 2019 19 Jun 2020 06 Oct 2020 30 Jun 2024 30 Jun 2026 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 323.00 Cumulative Contract Awards
ADB 235.00 21 Jul 2023 69.30 0.00 29%
Counterpart 88.00 Cumulative Disbursements
Cofinancing 0.00 21 Jul 2023 30.38 0.00 13%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 6008-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Sep 2016 17 Nov 2016 17 Nov 2016 30 Oct 2018 30 Oct 2020 06 Oct 2020
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.00 Cumulative Contract Awards
ADB 0.00 21 Jul 2023 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 21 Jul 2023 0.00 0.00 0%

Loan 8366-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Sep 2019 15 Mar 2021 15 Mar 2021 15 Sep 2025 30 Jun 2026 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 74.08 Cumulative Contract Awards
ADB 0.00 21 Jul 2023 0.00 20.54 29%
Counterpart 2.28 Cumulative Disbursements
Cofinancing 71.80 21 Jul 2023 0.00 3.73 5%

Loan 8367-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Jul 2019 19 Jun 2020 06 Oct 2020 30 Jun 2024 30 Jun 2026 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 37.20 Cumulative Contract Awards
ADB 0.00 21 Jul 2023 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 37.20 21 Jul 2023 0.00 0.00 0%

Loan 8368-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Nov 2019 24 Feb 2021 13 Apr 2021 30 Jun 2024 30 Jun 2026 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 71.80 Cumulative Contract Awards
ADB 0.00 21 Jul 2023 0.00 18.66 26%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 71.80 21 Jul 2023 0.00 4.65 6%
 
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Source URL: https://www.adb.org/projects/47279-002/main