ISLAMABAD (APP) - Pakistan Railways and Chinese firm on Monday signed a Memorandum of Understanding (MoU) about maintenance of 75 locomotives which aims to improve the performance of the Pakistan Railways. General Manager Operations Saeed Akhtar and Hu Weidong, Vice President, Dongfang Electric Corporation (DEC) International signed the agreement on behalf of their respective organizations. Speaking on the occasion, Minister for Railways, Haji Ghulam Ahmed Bilour thanked Chinese company for extending cooperation for the maintenance of locomotives for Pakistan Railways. He appreciated Chinas development and advancement in rail sector and expressed his hope that with the technical assistance of M/s Dongfang, Pakistan Railways would be able to manufacture electrical, diesel locomotives and metro trains in the country. Secretary Railways Sami-ul-Haq Khilji said that the agreement is the part of already approved agreement of 75 locomotives. He said that in the first phase, Pakistan Railways with the help of Chinese company will establish a warehouse for the spare parts of locomotives. In the second and third phases respectively, overhauling of locomotives and their full maintenance will be carried out, he added. The purpose of this agreement is to improve the performance of Chinese Locomotives and there is consensus that for better efficiency of government business activities, Public Private Partnership is the best methodology that is exactly the policy of present government. In accordance with this policy, it was considered to out source the maintenance of Chinese locomotives to its manufacturers who have proprietary rights over manufacturing of most of its spare parts and being the only manufacturer of these locomotives, they understands its mechanism better. The phase-II will start within a period of six months of implementation of phase-I and phase-III will start simultaneously after phase-II. It may be recalled that negotiations were started with M/s DEC/D Loco for entering into a maintenance contract based upon offer of supplying 75 locomotives along with maintenance contract. A technical delegation from Pakistan visited China for detailed negotiations.