GOVERNMENT OF PAKISTAN

(MINISTRY OF RAILWAYS)
(RAILWAYS BOARD)

REHABILITATION, UP-GRADATION
AND CONVERSION OF
400 COACHES
(Revised PC-I)

PC-I Performa
March, 2014

1
 PART – A

1. Name of Project. Rehabilitation, Up-gradation and

Conversion of 400 Coaches.
(Revised PC-I)

2. Location. Pakistan Railways Carriage Factory

Islamabad.

3. Authorities responsible for

i) Sponsoring. Ministry of Railways.

ii) Execution. Pakistan Railways.

iii) Operation & Maintenance. Pakistan Railways.

iv) Ministry responsible. Ministry of Railways.

4. a. Plan Provision.

1. If the project is included in the The project is included in the “10

medium term / five year plan,
specify actual allocation.
Years Prospective Plan. An amount
of Rs. 5200.000 million including
an amount of Rs. 446.432 million
FEC will be provided by the Govt.
of Pakistan through its Annual
Development Programme.

2. If not included in the current Not applicable.

plan, what warrants its inclusion
and how is it now proposed to
be accommodated.

3. If the project is proposed to be -

financed out of block provision,
indicate.

( Rs.in Million )
Total Block Amount already Amount proposed Balance Available
Provision Committed for this project

- - 5,200.000 -

2
b) Provision in the current year PSDP/
ADP for the year 2013-2014.
An amount of Rs. 289.000 million
has been provided in the financial
year 2013-2014. Additionally an
amount of Rs. 575.000 million
including an amount of Rs. 98.000
million FEC is required to achieve
the desired objective.

5. Objectives of the project preferably in

quantitative terms.

The proposed investment includes procurement of the essentially required important

spares including airbrake kits to improve safety, reliability and availability of passenger
coaches.
The object of this project /investment is to procure the essentially required important
imported/ locally manufactured spares and to undertake rehabilitation / up-gradation of
400 locally manufactured coaches including conversion into 135 A.C. coaches, 15 Dining
Cars and 30 power vans catering for improved availability, safety and reliability of
passenger coaches apart from rehabilitation of 220 2nd Class / Economy Class Coaches
/TL Vans. Out of the project 275 Passenger Coaches have already been turned out and
added in Pakistan Railways fleet.

6. DESCRIPTION AND JUSTIFICATION OF PROJECT.

Original PC-I of amounting to Rs. 3434.000 million including an amount of Rs.
1023.420 million FEC was approved by the ECNEC in its meeting held on
7.03.2007 for the rehabilitation, up-gradation and conversion of 400 Coaches. The
Project is under execution in Carriage Factory, Islamabad. So far an amount of
Rs. 3336.731 including Rs. 27.888 million FEC has already been spent on the
project and 275 Passenger Coaches have been rehabilitated and up-graded into air
conditioned standard /business class, whereas, 13 coaches have already turned out
after rehabilitation while 52 passenger coaches are in hand on the shop floor and
being rehabilitated and up-graded as under:-

i. Air conditioned business class = 27

ii. Power vans = 24
iii. Dining cars = 01

Further more 125 passenger coaches are required to be rehabilitated and up-
graded by conversion into air conditioned standard and business class coaches as
under:-

i. Air conditioned standard /business class = 60

3
 The cost of the project has already over run as indicated above, incurring an
expenditure of Rs. 3336.731 million till June, 2013 and an allocation of Rs.289.000
million made for the year 2013-14. In order to complete the work Rs. 575.000 million
including an amount of Rs. 98.000 million FEC additionally required for the year 2013-
14 and an amount of Rs. 704.120 million for the year 2014-15. Total cost of the project
will as such work out to Rs. 5200.000 million i.e. is an increase of Rs. 1766.000 million
including Rs. 446.432.000 million FEC which is about 51.4 % higher than the approved
cost.

WHY THE COST OVER RUN

The cost has over run due to the following factors:-

i. Labour charges have increased 117% during the execution period i.e.
2006-07 Rs. 30.000 per man/hr to Rs. 65 man/hr.

ii. During 2013-14 overhead charges have been increased from 2006-07 to
2012-13 as under:-
2006-07 = 911%
2007-08 = 517%
2008-09 = 430%
2009-10 = 476%
2010-11 = 549%
2011-12 = 551%
2012-13 = 558%

iii. The average rate of overhead charges during the execution year is 570%
due to increase in the utility bills and wages of staff and allied facilities
provided to staff.

iv. Material cost has been increased from 50 to 100% during the
corresponding years.

v. Rupee has been devalued against US$ and Euro by about 66.7% during
2006-2013, resulting in the increase of the prices of raw material used for
the rehabilitation, up-gradation and conversion of passenger coaches into
air conditioned coaches (AC Standard/AC Business).

vi. 750 employee were allowed on TLA vide annexure-XVI of the original
PC-I to complete the rehabilitation work within target time but due to
inadequate allocation of funds during 2009-10 to 2011-12, only 42
coaches were rehabilitated, up-graded and converted into air conditioned
coaches (AC Standard/AC Business) and factory has also made payment
to TLA staff from the PSDP allocation which was also a reason of cost
over run. At present the TLA staff strength has been reduced to 462 (vide

4
 Annexure-V/I) employees. It is suggested to continue to deploy them on
subject project.

vii. Inflation rate in Pakistan during 2006-07 to 2012-13 was above 10%
which increased the cost of material for the rehabilitation, up-gradation
/conversion of passenger coaches into air conditioned (AC Standard/AC
Business) coaches. (See Annexure- VII )

TIME OVER RUN:

i. Inadequate allocation of funds against actual demand has been provided during
the execution period and demanded funds were not provided to achieve targets
fixed. The execution time has increased from three years to nine years, resulting
in increase in the cost due to inflation of prices. Furthermore, funds were released
on quarterly basis due to financial constrains. It created problems in timely
procurement of material and purchase orders for material had to be placed in low
quantity on requirement basis.

ii. Turn-out factory is badly suffering due to load shedding of electricity and natural
gas, resulting in shortage of water supply and consequent reduction in working
hours & increase in idle hours, which were beyond the control of factory
administration from January, 2008 till 30 June, 2013.

iii. The growth of passenger traffic in Pakistan is directly related to the increase in
population, urbanization and rise in national income. The extent to which the
railways can play their role in sharing the responsibility of carrying passenger
traffic will, however, depend upon the operational economics of different modes
of transport and passenger amenities offered.

The railway is undoubtedly the cheapest mode of long distance transport

characterized by its capacity of mass transportation, comfort and safety. The
importance of rail transport potential has assumed new dimensions in view of
steeply rising prices of fuel and congestion on roads. In view of this situation,
Pakistan Railways will have to play a major role in the national transportation
system of the country.

Passenger and freight traffic targets for 2017-18 have been fixed in Business Plan
from 2012-13 to 2017-18 as 32,800 MPKMs and 25,200 MTKM. Railway carried
16,093.350 million PKMs and 402.481 million TKMs during 2011-2012.
Passenger traffic has increased by 4 % per year during 2000-2001 to 2008-2009,
i.e. 19,589 MPKM to 25,702 and decreased 30 % during 2009-2010 to 2011-2012
23, 522 MPKM to 16,093 MPKM @ 10 % per annum. Freight traffic have been
increased by 4 % per year during 2000-20001 to 2008-2009 i.e. 4,519 million
TKM to 5,896 million TKM and decreased 90 % during 2009-10 to 2011-20122
from 4,846 to 402.481 million tones @ 30.6% per annum. The decrease of
passenger traffic and Freight traffic was due to less availability of locomotives.

5
 Due to economic activities in Pakistan, the time consciousness has increased and
every one prefers better means of transportation with less journey time and
facilities specially the A.C standard / A.C business class. Passenger traffic of A.C
standard / A.C business class has been increased by 25 % during the last five
years. A big potential for increase in passenger traffic specially in A.C standard /
A.C business class and Economy class is available if journey times of trains are
reduced by increasing speeds of trains.

At present, there are 1687 coaches on the System (See Annexure-VIII. 113
coaches have already completed their economic life. This number would increase
with passage of time and it would increase to 300 by the year 2014-2015 as ample
number of coaches would require condemnation on age cum condition basis.
However, in order to keep the trains in service and in view of resource constraints,
it would not be possible to withdraw all these coaches from the system. As such,
it is considered imperative that a maximum No of coaches is rehabilitated, up-
graded and converted into A.C standard / A.C business class coaches to make
these coaches operational for another 15 years of service providing better
facilities and amenities to the travelling Public.

At present, there is shortage of Mechanical/ Electrical/ Traffic spare coaches on

the system due to which there is tremendous pressure on the maintenance staff to
keep maximum number of coaches in service to avoid problems to travelling
passengers. A large number of passenger coaches have been deteriorated with
passage of time, particularly, those manufactured locally which require frequent
replacement/rehabilitation. This situation is an outcome of low priority given by
previous Governments to Railways as a result of which there was an inadequate
allocation of funds under the head. "Stores" in the Revenue Budget for Repair and
Maintenance of coaches.

Under these circumstances, with a view to keep required number of coaches in

service, it would be imperative to carry out rehabilitation, up-gradation and
conversion into A.C standard / A.C business class coaches on a mass scale basis
for which the Project has been proposed.

Salient features of the rehabilitation project are as under:-

The salient features of the project are discussed as under:-

i) At present, first class sleeper coaches have a low earning potential. It will be in
the fitness of things to replace these first class sleeper coaches with A.C standard /
A.C business class coaches to significantly improve Railways earning. It is,
therefore, planned to convert 70 first class sleeper coaches and 65 2nd class
/Economy Class Coaches into A.C standard / A.C business class traveling public
and at the same time to improve the Railway earnings.

6
ii) Present availability of power vans is hardly sufficient to meet the present
commitment of A.C standard / A.C business class coaches on various trains. For
inducting additional 135 AC lower class coaches, there is a need to provide
matching power vans so that A.C standard / A.C business class coaches are
worked independent of existing power vans. For this purpose, thirty (30) 2nd class
coaches will be converted into power vans under this “rehabilitation/ up gradation
and conversion project”.

iii) As per grand reality it has been decided to rehabilitate 280 BG-64 bogies instead
of procurement of new design high speed bogies.

iv) The present capacity of the Pakistan Railways to carry passenger traffic is
approximately 26.000 billion passenger kilometer annually which is not sufficient
to meet the needs of developing economy which requires growing volume of
passengers to be transported across the length and breadth of the country.
Pakistan Railways is, at present, carrying 20% of the total passenger traffic
moving only from Karachi due to which balance 80% is carried by road which is
more expensive as compared to rail but also generates excessive pollution and is
less safe. There is an additional demand of over 4 billion PKMs to be moved from
Karachi to up country cities like Multan, Lahore, and Rawalpindi etc. for which
Pakistan Railways is required to expand its transportation capacity.

v) It is necessary that these coaches are fitted with air brake system because the
existing vacuum brakes are unable to provide the required braking power to match
higher speeds and loads of passenger trains. The cost of air brake set has been
included in the cost for conversion of coaches from sleeper class and second class
into Air Conditioned Standard / Business Class.

vi) With advancement in carriage design in the world, it is considered essential to

improve standard of rehabilitation/conversation and up gradation, particularly, in
case of AC coaches. It has, therefore, been planned to provide new design modern
compartments and toilets with modern accessories so that the level of passenger
comfort and interior look is greatly improved.

As the prices of material have been increased due to price hike in the World
market, specially with respect to steel, coal and consumable items, devaluation in
Rupees against U.S. Dollar, Euro, Pound Sterling and annual increase in labour
cost/charge along with utility bills which can be seen as per comparative
statement placed at Annexure-II. The PC-I is, therefore, revised and additional
51.4% amount of Rs. 1766.000 million is required for changing the scope of work
whereas, the quantity will remain the same. The revised PC-I has been submitted
for the approval of the competent authority to regularize expenditure already
incurred for the procurement of material, payment made to the Factory
workers/labour and the utility bills.

7
 The salient features of the revised project are further discussed as under:-

a) Conversion into Air Conditioned Standard/Business Class Coaches.

Due to low earning potential of first class sleeper / economy/ 2nd class, 135
coaches shall be converted into Air conditioned standard/Business class coaches
to fetch more revenues. With the conversion of 135 Air conditioned
standard/Business class coaches, the revenue will increase.

b. Conversion of 15 Nos Dinning Cars.

15 Nos 2nd Class /Economy Class Coaches will be rehabilitated and converted
into Air Conditioned Dinning Cars to provide better facilities and amenities to the
travelling public /passengers during the journey.

c. Conversion into Power Vans.

In order to provide electric power to the Air Conditioning and electric equipment,
of 135 AC Lower coaches, 30 Nos. 2nd class coaches Brake Vans / Guard Vans
will be converted into power vans under the project with rehabilitated bogies.

d. Rehabilitation of 280 bogies

As the present, bogies of BG-64 design are giving maintenance and operational
problems as such it is planned to rehabilitate 280 trolleys (bogies) instead of
procuring imported material. These will be fit to run at a speed of 110 KMPH.

e Fitment of air brakes to 284 coaches.

284 coaches shall be converted from vacuum brake to air brake system so that
after their putting into service, speed and load of trains are significantly enhanced,
reducing the journey time and increasing revenue.

f. Rehabilitation of 220 Nos. 2nd Class / Economy Class Coaches Including/TL

Vans.

220 Nos. 2nd class/ Economy class coaches/ TL Vans have been deteriorated with
passage of time, particularly, those manufactured locally which require
replacement / rehabilitation as such these coaches would be rehabilitated provided
with modern facilities/amenities along with head end generation system and Train
lighting Van for smooth working of train lighting and air conditioning system
which had already been introduced in the past.

8
(IV). SCOPE OF WORK FOR REHABILITATION / UP GRADATION OF
COACHES

Following is the brief detail of repairs which will be attended during

rehabilitation and up gradation of coaches.

i) Replacement of complete floor

j) Repair of side wall, under frame and pillars of coach
k) Strengthening of under frame
l) Replacement of interior paneling
m) Replacement of window units and aluminum mouldings
n) Laying of PVC layer on floor top
o) Conversion of two tier seat into three tier cushioned seat in
economy class coaches
p) Provision of new fans and tube lights working on 220-V
q) Conversion of coaches on head end generation instead of
dynamo.
r) Provision of DG set for train lighting and air conditioning
s) Rehabilitation of bogie under frame
t) Fitment of air brake kits on vacuum brake coaches
(Replacement or additional fitment)
u) Fitment of AC unit and duct
v) Manufacturing of compartment for AC coaches
Provision of sealed window unit in AC coaches
w) Provision of latest kitchen equipment in dining car.
x) Provision of vestibule connections throughout the train.
y) Fitment of air brake kits

Climatically, geological and other data

* TEMPERATURES:
i ) .Max. recorded ambient temp: 520c
ii) Average max. readings : 480c
iii) Min. recorded ambient temp: (-) 180c
iv) Average min. readings: (-) 50c

9
 * RELATIVE HUMIDITY :
a) Max. 100 %
b) Average of max. reading 48 %
c) Min. 2%
d) Average of min. reading 21 %

7. Capital cost estimates.

a. Phasing of capital cost be worked

out on the basis of each item of
work, as stated above and provide
as per following :

b. Indicate date of estimation of MARCH, 2014.

project.

c. Basis of determining the capital
cost to be provided. It includes
market survey, schedule rates,
estimation on the basis of previous
work done etc.
d. Provide year wise estimation of
physical activities.
The Costs are based on the last,
present purchase rate (material
procured during the execution and
existing market rates and up-dated
according to planning commission
formula.
See annexure- I

Year –wise/component –wise financial phasing

See Annexure –I.

8. Annual operating costs.

Item wise annual operating cost on

proposed capacity utilization be
worked for 5 years and sources of
its financing.

Repair / Maintenance Cost

The average annual maintenance cost of a coach during the Financial Year
2006-2007 is worked out as Rs. 0.630, Rs. 0.473 and Rs. 0.840 million for A.C
class, economy class and power van respectively. This cost is shown in column 5
of the work sheet. These costs have been increased/ updated upto 2015-16 and
remaining cost is assumed to remain the same like passenger fare charges which
have also been frozen like-wise. Any increase in maintenance and operating costs
will be charged directly to passenger fares in future to maintain the present I.R.R.

Operating Cost

10
 The average annual operating cost of a coach during the Financial Year
2006-2007 is as worked out Rs. 0.368, Rs. 0.357 and Rs. 4.725 million for A. C.
class, economy class and power van respectively. This cost is shown in column 6
of the work sheet. These costs have been increased /updated upto 2015-16 and
remaining costs have been assumed to remain the same like passenger fares
which have also been frozen like-wise. Any increase in maintenance and
operating costs will be charged directly to passenger fares in future to maintain
present I.R.R.

9. Demand and supply analysis.

a) Existing capacity of services its

supply /demand.

At present, there are 1687 PCV coaches on the System. 113 Nos. of coaches
have already completed their economic life. This number would increase with
passage of time and it would increase to 197 by the year 2014-2015, as an
ample number of coaches would require condemnation on age cum condition
basis. However, in order to keep the trains in service and in view of resource
constraints, it would not be possible to withdraw all these coaches from the
system. As such, it is considered imperative that a maximum No of coaches is
rehabilitated, up-graded and converted into Air conditioned standard/Business
class coaches to make these coaches operational for another 15 years of service
providing better facilities and amenities to the traveling Public.

b) Projected demand for 10 years.

The present capacity of the Pakistan Railways to carry passenger traffic is

approximately 26.000 billion passenger kilometers annually which are not sufficient
to meet the needs of developing economy which requires growing volumes of
passengers to be transported across the length and breadth of the country. Pakistan
Railways is at present, carrying 20% of the total passenger traffic moving only from
Karachi due to which balance 80% is carried by road which is more expensive as
compared to rail and also generates excessive pollution and is less safe. There is an
additional demand of over 4 billion PKMs to be moved from Karachi to up country
cities like Multan, Lahore, and Rawalpindi etc. for which Pakistan Railways is
required to expand its transportation capacity. The projected demand for next three
years at 3% growth rate.

c) Capacity of the project being

implemented in public/private See justification of the project.
sector.

11
d) Supply –demand gap.

Passenger and freight traffic targets for the years 2017-18 have been fixed in
Business Plan from the F.Y. 2012-13 to 2017-18 as 32,800 MPKMs and
25,200 MTKM. Railway carried 16,093.350 million PKMs and 402.481
million TKMs during 2011-2012. Passenger traffic has increased by 4 % per
year during 2000-2001 to 2008-2009, i.e. from 19,589 MPKM to 25,702 and
decreased 30 % during 2009-2010 to 2011-2012 i.e. from 23, 522 MPKM to
16,093 MPKM @ 10% per annum. Freight traffic has been increased by 4 %
per year during 2000-20001 to 2008-2009 i.e. from 4,519 million TKM to
5,896 million TKM and decreased 90 % during 2009-10 to 2011-20122 i.e.
from 4,846 to 402.481 million tones @ 30.6% per annum. The decrease in
passenger traffic and Freight traffic was due to less availability of locomotives.
Due to growing economic activities in Pakistan, the time consciousness has
increased and every one prefers better means of transportation with less
journey time and facilities specially the Air Conditioned Standard/Business
Class Coaches services. Passenger traffic of Air Conditioned
Standard/Business Class Coaches has been increased by 25% during the last
five year. A big potential for increase in passenger traffic specially in Air
Conditioned Standard / Business Class Coaches and Economy class is
available if journey time of trains is reduced by increasing speed of trains. The
major bottlenecks are the non-availability of Passenger coaches and speed. To
increase speed, the design proposed in this project will up-grade passenger
carriages with bogies capable of running upto 120 KPMH.

e) Designed capacity and out put of

the proposed project.

At present, first class sleeper coaches have a low earning potential. It will be in
the fitness of things to replace these first class sleeper coaches with Air Conditioned
Standard/Business Class Coaches to significantly improve Railways earning. It is,
therefore, planned to convert 70 first sleeper class coaches and 65 Economy Class
Coaches into Air Conditioned Standard/Business Class Coaches with separate
compartments to provide better comfort to the travelling public and at the same time
improve the Railway earnings.

Present availability of power vans is hardly sufficient to meet with the present
commitment of Air Conditioned Standard/Business Class Coaches on various trains.
For inducting additional 135 Air Conditioned Standard/Business Class Coaches, there
is a need to provide matching power vans so that AC coaches are worked independent
of existing power vans. For this purpose 30 coaches will be converted into power vans
under this rehabilitation project.

It is considered most appropriate to rehabilitate at least 280 bogies for fitment

under 140 existing carriages to overcome the problem of repeated maintenance within
short intervals and increasing speed of trains.

12
10. Financial Plan

Sources of financing.

a) Equity.

Indicate the amount of equity to be Foreign exchange, component

financed from source.
amounting Rs. 446.432 million will be
provided by the Government of Pakistan
through Cash Foreign exchange and
Local rupees Rs. 4753.568 million will
also be provided by the Govt; of
Pakistan. Total requirement of the
project is amount of Rs. 5200.000
million, out of which an amount Rs.
3336.731 million including an amount
of Rs. 27.888 has already been spent on
the project.

Sponsors own resources. Not applicable.

Federal Government. An amount of Rs. 4753.568 million

local component would be provided by
the Govt. of Pakistan, out of which an
amount of Rs. 3336.731 million has
already been spent on the project.

Provincial Government. Not applicable.

DFI’s/Bank. Not applicable.

General Public. Not applicable.

Foreign equity. Not applicable.

NGO’s /Beneficiaries. -

Others. -

b) Debt.

Indicate the local & foreign debt,

grace period and repayment for Not indicated at this stage
each loan separately.

13
 The loan repayment schedule be
also annexed.
c. Grants. Not known

d. Weighted cost of capital. It can not be indicated at this stage.

11. Benefits of the Project and

Analysis:-
The object of this project /investment is to procure the essentially required imported/
locally manufactured spares and to under take rehabilitation of 400 coaches locally including
conversion into 135 A.C. lower coaches, 15 Dining cars and 30 power vans to improve
availability, safety and reliability of passenger coaches apart from rehabilitation of 220
economy class Coaches /TL Vans according to the following schedule and up to 31/7/2013,
275 Nos. of passenger coaches have already been rehabilitated, up graded and converted in air
conditioned standard / business class & remaining. 125 passenger Coaches will be
rehabilitated during F.Y 2013-14 and 2014-15. It is also pointed out that 43 Passenger
Coaches are already in the factory and rehabilitation work is continuing.

REHABILITATION / CONVERSION SCHEDULE

YEAR CONVERSION REHABILA TOTAL
TION
A.C POWER DINNING ECONOMY
Business VAN CAR CLASS/ TL
/A.C Vans
Standard
2006-2007 0 0 0 0 0
2007-2008 13 6 2 47 68
2008-2009 15 0 3 108 126
2009-2010 11 0 0 36 47
2010-2011 03 0 0 01 4
2011-2012 0 0 0 25 25
2012-2013 0 0 2 3 5
2013-2014 17 0 8 0 25
2014-2015 76 24 0 0 100
TOTAL 135 30 15 220 400

CAPITAL COST.

Capital cost has been divided into following distinct groups as under:

Group-I.

The estimated cost of Rehabilitation of 220 Economy Class coaches/TL Vans under
Rehabilitation Plan and cost of conversion of 70 first class sleeper coaches and 65 2nd class
economy class coaches into 135 Air Conditioned Standard/Business Class Coaches, 15

14
Dinning Cars and 30 2nd Class Coaches into Power vans under this project for the Rolling
Stock of the Passenger Business Unit, has been worked out to be Rs. 5180.633 million with
Rs. 2664.851 million labour charges including over head charges including establishment
charges and Rs. 2515.782 million for the procurement of material required for rehabilitation
of passenger coaches and up-gradation and conversion of first and economy into air
Condition classes coaches, Dinning cars and Power Vans. It includes the cost of material such
as melamine panels for compartments and toilets, toilet fittings, local material, charges, etc.
for the Rolling Stock of the Passenger Business Unit.

NOTE :-

Rs 600.00 million depreciation cost (booked value) have been calculated for 400
coaches to be rehabilitated or converted into air conditioned lower class coaches and power
vans for group I and II and has been charged to the project while making financial and
economic analysis on work sheet at annexure III and IV.

Group-II

The estimated cost for procurement and fitment of air brake kits to 288 passenger
coaches worked out to Rs. 76.285 million. It includes the cost of 288 imported air brake Kits,
local material and labour charges which are included in the cost for the rehabilitation of
coaches. Being a minor cost, all the costs have been charged to the project.

i) Financial.
Income to the project along with
assumptions.

Benefits (earnings)
Earnings based on one day passenger fares. The charges per passenger for the financial years
2007-08, 2008-09, 2009-10, 2010-11, 20011-12 and 2012-13 on actual average basis and
class-wise earning have been taken into account and divided by the Nos. of passenger coaches
running /working on the line during every year. Fares of the financial year 2013-2014 and
2014-15 are kept same as of the F.Y 2012-13. These carriages were re-used for trains between
Peshawar Cantt – Karachi Cantt and as unit trains in future between Rawalpindi – Karachi
Cantt., Multan Cantt – Karachi Cantt, Quetta – Peshawar Cantt, Sukkur –Karachi Cantt and
Lahore – Karachi Cantt. and their earning has been calculated at annexure- VI and charged
accordingly.

30% of this earning is attributed to coaches on the basis of investment ratio on other
elements of infrastructure i.e. Track. Locomotives etc.

* Economic
Benefit to the economy along with
assumptions.

15
 1. Rehabilitation, up gradation and conversion of old coaches into Air Conditioned
Standard/Business Class Coaches and increased transportation capacity of
Pakistan Railways.
2. Better utilization of available Railway infrastructure.
3. Improved financial liquidity.

* Social
Benefits with indicators. i) To provide better, comfortable, reliable
and safe journey to the traveling
passengers.
ii) Improvement in quality of services to be
rendered to traveling public.
iii) Improvement in standards of efficiency.
iv) Good will of Public through punctual
running of trains.
ii) Environmental.
Environmental impact assessment For the haulage of one metric tonne over
negative /positive. a distance of one kilometer by road,
18000 BTUs are consumed, whereas, by
rail only 3000 BTUs are consumed for
the same distance. Thus pollution
generating ratio between road haulage
and Railway haulage is approximately
6:1.
Financial/Economic Analysis
( with assumption )

Financial Analysis
iii) Quantifiable output of the project. See section 11 Financial.

iv) Profit and loss account and Cash See Annexure-III.

Flow statement. Discounted @ 12 %

v) Net present value (NPV) and NPV. 487.658 Million

Benefit Cost Ratio. Benefit Cost Ratio = 1.092 : 1

* Internal financial rate of return 15.008 %

(IFRR)

vi) Unit Cost analysis. Not applicable

* Break even Point ( BEP) Not applicable.

16
vii) Pay back period.
Return on equity ( ROE)
* Economic Analysis.
Provide taxes & duties separately in
the capital and operating cost.
* Net present value (NPV) and
benefit cost ratio (BCR)
* Internal economic rate of Return
( IERR)
* Employment analysis.
viii) Employment generation (direct and
Indirect)
ix) Sensitivity Analysis.
x) Impact of delays on project cost
viability.
12 Implementation Schedule.
xi) -
Indicate starting and completion
date of the project.
17
05 Years.
Not applicable.
See Annexure-IV.
Year–wise Custom Duty /Sale Tax in
the capital cost is as under :
2008-2009 = Rs. 4.504 million
2009-2010 = Rs. 3.620 million
2013-2014 = Rs. 32.000 million
2014-2015 =Rs. 102.570 million
Total: = Rs. 142.694 million
As far as the operating cost is
concerned, it is very difficult to
calculate taxes /duties due to its
complex nature.
NPV. 540.143 Million
Benefit Cost Ratio = 1.102 : 1
15. 329%
Discounted @ 12%
See Annexure –V,V/I,V/II.
Not applicable as the project cost has
already been over run and the project is
five years delayed.
Project has already been started from
May, 2007. Completion period was 36
Months w.e.f 1st May 2007. Now the
project has already been delayed and
cost has already been over run by more
than 15%. Project will be completed by
30th June, 2015, because the provision of
funds was not made in time and project
 was delayed on this account.

* Item-wise /year wise

implementation schedule in line See Annexure-I.
chart co-related with phasing of
physical activities.

* Result Based Monitoring (RBM)

Indicators.
Indicate Result Based Monitoring (RBM) frame work indicator in quantifiable terms
in the following table:

REHABILITATION/UP-GRADATION AND CONVERSION OF 400 COACHES.

S. In Put Out Put Out Come Targeted

No Baseline Targets after Impact
Indicator Completion
of project
1. Conversion of Type of Coaches Present Availability To meet with
old age coaches Economy Class Availability of passenger shortage of
into air =220 Economy coaches 15% coaches
conditioned Air Conditioned = Class = 740 will be required for
coaches having 135 Air increased. handling of
almost above Dining Cars = 15 Conditioned targeted
20 years age. Power Vans = 30 = 154 passenger
Dining Cars coaches
Coach building, = 44 resulting
raw material, Power Vans enhancement
spare parts and = 34 of passenger
labour. Total = 972 kilometers.
275 coaches
have
already
rehabilitated
and
included in
972
passenger
coaches.
13 Management Structure and
Manpower Requirements.
* Administrative arrangement for (i) MD Carriage Factory will be the
implementation of project. incharge of the project.
(ii) For additional requirement of staff
for Carriage Factory, see annexure-V/I.
They are admissible for their pay and

18
 allowance according to Finance
Division’s letter No. F-4(9)R-3/2008-
499 dated 12.08.2008
(iii). For operational and maintenance,
staff requirement of these coaches may
kindly be seen at annexure-V & V/II.
This will be required on permanent
basis.

* The manpower requirements by Work charged posts will be created for

skills during execution operation of operation of the project and staffed from
the project be provided. available manpower / recruitment of
temporary labour /staff. See Annexure-
V, V/I & V/II.

xii) The job description, qualification,

B See Annexure V, V/I &V/II.
)
experience, age and salary of each
post be provided.

14 Additional projects/ decisions.

xiii) Indicate additional projects /

decisions required to optimize the
investment being under taken on
the project.

15 Certificate

* The name, designation and Phone #

of the officer responsible and
checking be provided. It may also
be confirmed that PC-I has been
prepared as per guidelines issued by
the Planning Commission for the
preparation of PC-I for
Infrastructure Sector project.

19
 It is certified that PC-I has been prepared as per guidelines issued by the Planning
Commission for the preparation of PC-I for Infrastructure Sector project.

(RAHAT MIRZA)
Prepared by DY. CHIEF MECHANICAL ENGINEER/DEV.
# 042-920 1657
RAD. 2666

(AMBREEN ZAMAN)
Checked by CHIEF ELECTRICAL ENGINEER

(CAPT. RTD. ANSAR BILLAH KHAN)

Checked by CHIEF MECHANICAL ENGINEER/CARRIAGE.
# 042-920 1645
RAD. 2818

(RANA ABRAR ANWAR)

Vetted by ADDITIONAL GENERAL MANAGER/MECH.

(MUHAMMAD JAVED ANWAR)

Vetted by ADDITIONAL GENERAL MANAGER/TRAFFIC.

Approved by (ANJUM PERVAIZ)

GENERAL MANAGER/OPERATIONS.

(PARVEEN AGHA)
Sanctioned by ACTING SECRETARY/CHAIR PERSON RAILWAYS

(ECNEC)

20
 It is certified that PC-I has been prepared as per guidelines issued by the Planning
Commission for the preparation of PC-I for Infrastructure Sector project.

Prepared by (RAHAT MIRZA)

DY. CHIEF MECHANICAL ENGINEER/DEV.
# 042-920 1657
RAD. 2666

Checked by (ANJUM SHEHZAD)

DY: CHIEF ELECTRICAL ENGINEER/REHAB: OF
400 PASSENGER COACHES

(CAPT. RTD. ANSAR BILLAH KHAN)

Checked by CHIEF MECHANICAL ENGINEER/CARRIAGE.
# 042-920 1645
RAD. 2818

(RANA ABRAR ANWAR)

Vetted by ADDITIONAL GENERAL MANAGER/MECH.

(MUHAMMAD JAVED ANWAR)

Vetted by ADDITIONAL GENERAL MANAGER/TRAFFIC.

Approved by (ANJUM PERVAIZ)

GENERAL MANAGER/OPERATIONS.

(PARVEEN AGHA)
Sanctioned by ACTING SECRETARY/CHAIR PERSON RAILWAYS

(ECNEC)

21
Rehabilitation, Up gradation and Conversion
of 400 Passenger Coaches
( conversion of 70 First Class Sleeper Coaches, 80
Economy Class Coaches into Air Conditioned Lower
Class, 15 Dinning Cars & 40 Power Vans.)

Year –wise/component –wise financial phasing

( Million Rs. )
Year FEC LOCAL TOTAL
2006-2007 44.160 1011.840 1056.800
2007-2008 1315.860 1261.140 2577.000
2008-2009 - 353.000 353.000
Total project cost:- 1360.020 2625.980 3986.000

REHABILITATION / CONVERSION SCHEDULE

YEAR CONVERSION REHABILA TOTAL

TION
A.C. POWER DINNING ECONOMY
LOWER VAN CAR CLASS.

2006-2007 10 8 2 20 40
2007-2008 70 20 4 82 176
2008-2009 70 12 9 85 184
TOTAL 150 40 15 195 400

PROCUREMENT /MANUFACTURING SCHEDULE OF BOGIES.

YEAR PROCUREMENT MANUFACTURING TOTAL

(CBU)
2006-2007 - - -
2007-2008 30 230 260
2008-2009 - 100 100
TOTAL 30 330 360

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xiv) Net present value ( NPV) and NPV . 325. 582 Million
Benefit Cost Ratio. Benefit Cost Ratio = 1.051 : 1

* Internal financial rate of return 13.434 %

( IFRR )

* Net present value ( NPV ) and NPV . 595.223 Million

benefit cost ratio ( BCR ) Benefit Cost Ratio = 1.097 : 1

* Internal economic rate of Return 14.784 %

( IERR) Discounted @12 %

23