In August 2016, the Government of Khyber Pakhtunkhwa signed a $1.6 billion memorandum of understanding (MoU) with China Communication and Construction Company for the project.
[2][3] This railway is expected to resolve transportation problems in the Peshawar region and generate jobs leading to the overall economic revival of the province.
According to the MoU, China Communication and Construction Company shall conduct a feasibility study, inclusive of concept design, cost estimation and will prepare a technical and financial proposal to the provincial government in respect of the development of the project.
The Government of Khyber Pakhtunkhwa shall be responsible for obtaining all approvals permits, land rights and other necessary permissions to enable the company to complete the feasibility work.
The government will facilitate the company to fulfill its obligations and responsibilities by providing available relevant local technical information and other necessary documents available in respect of project.