LAHORE, May 23: Punjab Law Minister Rana Sanaullah Khan has said a pre-feasibility study initiated by the previous government in 2006 had given the estimated cost of the Lahore Metro System at about $2.4 billion whereas the initial agreement signed by the present government with the Chinese company is for about $1.7 billion and this cost may further be reduced after proper investigation and feasibility report. Thereby, he said, a saving of a substantial amount of $700 million was on the cards.

In response to a report on the project carried by Dawn on Monday, he said the previous regime had struck the deal for a luxury system whereas the new agreement had been made on the pattern of Beijing Metro which was comfortable and affordable.

The minister further pointed out that Chinese company NORINCO had vast experience in this sector. He said that the company besides laying a railway track in Tehran was now working on a similar project in Mashhad. Moreover, NORINCO had laid a track in Beijing.

Rana Sana further said the Chinese company would also arrange funding for the project.

He said the Punjab government was committed to its austerity drive and no wastage of funds could be allowed.