BRT Red Line: Asian Development Bank Rejects Extension Until 2029, Grants Conditional 10-Month Relief

Karachi: The Bus Rapid Transit (BRT) Red Line project in Karachi has suffered a major setback after the Asian Development Bank (ADB) rejected a request to extend the project timeline until 2029. Instead of a long-term extension, the bank has allowed only a conditional 10-month grace period.

According to sources, the ADB has directed the Sindh government to significantly accelerate progress during the next 10 months, with a target of completing at least 5% of the work each month.

Having completed only 25% of the work over the past seven years, the Government of Sindh is now requesting a three-year extension to finish the remaining 75%. In response, the lending financial institutions have expressed deep concerns and strong displeasure. The bank emphasized that any further extension will depend strictly on improved performance.

It is worth noting that the Sindh government had formally requested an extension until 2029 to complete the project. However, not only the ADB but also other international financial institutions appear reluctant to support such a prolonged delay.

The BRT Red Line project was originally launched in 2019 and was scheduled for completion by June 2022. However, by 2026, only about 25% of the work has been completed. Due to persistent delays, the project cost has increased significantly, with the revised PC-I estimating expenses to exceed PKR 200 billion.

It was a joint investment by foreign financial institutions, including the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), Agence Française de Development (AFD), and Green Climate Fund (GCF). Together, they contributed $417 million (equivalent to 418 million USD), which, at the prevailing exchange rate of 158.50 Pakistani rupees per USD, amounted to approximately 66.37 billion rupees in local currency. Meanwhile, the Government of Sindh contributed its share of $60 million, which equaled 12 billion rupees at the time. Thus, the total cost of the BRT Red Line project came to 78.38 billion Pakistani rupees and now, this cost has exceeded 200 billion Pakistani rupees.