ICBC provides Rs. 1.36 billion in additional financing for the Lahore Orange Line Metro Train Project (Linked to Record ID#54420, #37280, and #53820)

Project narrative

The Government Pakistan first announced its interest in pursuing a project to develop a city-wide train system in the eastern city of Lahore on April 27, 2011. Lahore, the capital of Punjab province, is Pakistan’s most populous and prosperous province. It is home to more than 5 million people. Pakistani officials expected the new transport system, the first of its kind in the country, to substantially decrease road traffic. Then, on April 20, 2015, a commercial contract for the Lahore Orange Line Metro Train Project was signed between Punjab Mass Transit Authority (PMA) and CR-NORINCO [a joint venture of China State Railway Group Co. Ltd. (CR) and China North Industries Corporation (NORINCO)]. Shortly thereafter, on December 21, 2015, the China Eximbank and the Government of Pakistan signed three separate loan agreements for the Lahore Orange Line Metro Train Project: a $203.25 million buyer’s credit loan (BCL) agreement, a $1,235,480,000 preferential buyer’s credit (PBC) agreement, and an RMB 1,200,000,000 government concessional loan (GCL) loan agreement. The BCL (Record ID#53820 and loan ID#BC-OLL-2015) has a 5.2% interest rate and a 20 year maturity. The PBC (Record ID#37280 and loan ID#PBC-OLL15-34377) has a 20 year maturity and an unknown interest rate. The GCL (Record ID#54420 and loan ID#GCL-OLL15-20559) has a 2% interest rate and a 20 year maturity. According to the Government of Pakistan’s Economic Affairs Division, $672.7 million of this “mixed credit” from China Eximbank had been disbursed as of June 30, 2017. In January 2017, Industrial and Commercial Bank of China (ICBC) also provided a Rs 1.36 billion short-term loan for the Orange Line Metro Project in Pakistan. The terms of this loan (Record ID#57673 ) are unknown. The Lahore Orange Line Metro Train Project involved the construction of a 27km two-lane metro bus corridor that runs through the heart of Lahore along Multan Road, McLeod Road, and GT Road. Upon completion, the Orange Metro Line was expected to have capacity for 30,000 passengers per hour and serve 250,000 passengers per day. CR-NORINCO — a joint venture of China State Railway Group Co. Ltd. (CR) and China North Industries Corporation (NORINCO) — was the entity responsible for project implementation. The project was initially expected to begin by the end of 2014, last for 27 months, and conclude in 2018. However, it encountered various delays. The Lahore Development Authority began marking sites for demolition in August 2015, including government buildings, royal tombs, mosques, schools, and residences. Civil works were then initiated by CR-NORINCO on October 25, 2015. Popular protests prompted the Lahore high court to suspend work surrounding heritage sites in January 2016 while the court deliberated the issue. Then, in August 2016, the Lahore high court ruled that the government could not evict people or harm the heritage sites. The Punjab provincial government challenged the ruling, and in April 2017, the Supreme Court reversed its decision, allowing construction to continue under 31 conditions to limit the disruption and damage of the project. This project was ultimately completed on December 10, 2019.