ISLAMABAD (APP) - The Ministry of Railways is all set to initiate work on a project to revive Karachi Circular Railway (KCR) shortly, after finalizing a loan agreement with Japanese government. The KCR was constructed and opened for traffic in two phases in the year 1964 and 1970. It was originated from Drigh Road Station on main line and after crossing Shahrah-e-Faisal passes through populated areas of Gulshan-e-lqbal, Gulistan-e-Johar, Liaquatabad, Nazimabad, SITE, Baldia, Liyari, Kharadar and finally touches Karachi City Station. Minister for Railways Haji Ghulam Ahmed Bilour told media that due to lack of investment in infrastructure, rolling stock etc. the operational efficiency was marginalized, causing increase of running time, lesser number of trains resulting in reduction of passengers and eventually KCR was closed for passenger traffic in December 1999. He said that work on stage I and II of the project will be commenced simultaneously and would be completed within three-year time by introducing two eight-hour shifts. He said that it is expected that loan agreement will be signed between Government of Japan and Government of Pakistan in mid of 2010. The work will be started in 2010 and the operation will be opened for public by 2014, the minister added. Bilour said in order to plan an effective public transportation system in the city of Karachi, numerous studies were arranged but due to various reasons, mainly lack of funds, no project could be implemented. The minister said the KCR would be revived in two phases as Modern Commuter System for the citizens of Karachi and Karachi Urban Transport Corporation (KUTC) will be formed with Ministry of Railways, Government of Sindh and City District Government Karachi as shareholders on basis of their equity. The minister said in October 2005 Japan External Trade Organization carried out a feasibility Study of the project and recommended the revival of KCR as a viable project for mitigating the commuters problems. He said on completion of the project an international operator of repute will be appointed for operations and maintenance of KCR and KUTC will oversee the management of KCR. He said the donor agency namely Japan International Cooperation Agency (JICA) sponsored a final study named Special Assistance for Project Formation (SAPROF) for the project and the final report received in April last year, with estimated cost of $ 1558.8 million (Rs. 128.6 billion). As many as 290 trains per day will operate at 6 minutes headway in each direction with capacity of 1391 passengers per trains, 30602 passengers per hour and 0.69 million passengers per day, he said. He said the stations will be provided with computerized ticketing, automated ticket gates, vending machines and elevators, adding that the entire KCR will be provided with electric traction infrastructure and modernized signalling and telecommunication system. Regarding the funds of the project the minister said JICA will arrange 93.5 percent funding of project cost $ 1558.8 million through soft term loan at a mark-up of 0.2 percent payable in 40 years including 10 years grace period remaining expenditure of 6.5 percent will be borne by the stake holders of KUTC. He said the project would implement on private public partnership and International Consultant will be engaged for designing of the project. Consultant M/s. Louis Berger USA with local Consultant Associates have carried out third party validation of SAPROF final report. The minister said the Satellite Imagery of KCR route has been completed by Pakistan Space and Upper Atmosphere Research Commission (SUPARCO).