Peshawar BRT Avoids Shutdown as Dues Paid to Contractors

Peshawar BRT (Bus Rapid Transit) has narrowly avoided a shutdown by paying a portion of the contractor’s dues. TransPeshawar, the organization responsible for the operation of Peshawar BRT, paid Rs. 424 million out of the contractors’ total dues of Rs. 1 billion earlier today.

Daewoo Pakistan, the operator of 244 buses for Peshawar BRT, had notified the provincial government that it would suspend the service on June 7 if TransPeshawar failed to pay Rs. 754 million, representing the last four months’ dues.

Following approval from TransPeshawar’s board of directors on Tuesday, a payment of dues was initiated. Daewoo Pakistan received Rs. 344 million, while other companies received Rs. 80 million. The remaining dues are expected to be cleared by June 20 after another tranche of Rs. 400 million is released. Once the funds are available, the BRT operator will clear the payments for May.

According to official documents, TransPeshawar owes Rs. 1 billion to five BRT contractors since February. Daewoo Pakistan and other companies have repeatedly requested the provincial government to settle their outstanding dues.

The Asian Development Bank and French Development Agency, international lenders who finance Peshawar BRT, have urged the government to promptly pay the contractors. They warned that a failure to do so would harm their partnership for the province’s development.