Govt clears Mandra-Chakwal Road at higher cost
Ignores instructions and objections raised by technical wing
Ignores instructions and objections raised by technical wing. PHOTO: FILE
ISLAMABAD:
The government has cleared the Mandra-Chakwal Road construction project at a revised cost of Rs10.1 billion, almost four times higher than its original estimate, as instructions of Prime Minister Nawaz Sharif and objections raised by technical wings keep getting ignored.
Headed by Planning, Development and Reform Minister Ahsan Iqbal, the Central Development Working Party (CDWP) cleared the scheme at a price of Rs10.1 billion in mid-December for final approval of the Executive Committee of National Economic Council (Ecnec).
Work on the project has already begun and Rs4.5 billion had been spent by November last year.
Govt green-lights three CPEC projects at 23% higher cost
Former prime minister Raja Pervez Ashraf had originally approved this scheme for his constituency, which was challenged in the court due to violation of rules in the award of contracts.
The National Accountability Bureau (NAB) had also launched an inquiry, which remains pending. The NAB-led inquiry is focused on the basis on which work for the projects was awarded, and the people who violated the procedures and released funds for the execution of the work.
The CDWP had initially approved this scheme in September 2012 at a cost of Rs2.7 billion. After coming into power, the PML-N government approved the project at a revised cost of Rs4.7 billion.
However, it has now made a second revision, increasing the cost by Rs7.4 billion - 375% higher than the 2012 original price.
Out of Rs7.4 billion, about Rs2.7 billion seems justifiable while the rest (Rs4.7 billion) of the increase remains unexplained, showed project documents. The scheme was among the projects that received Rs47 billion funding from PM’s discretionary funds during the last year of the PPP government. In December 2013, Supreme Court Judge Iftikhar Mohammad Chaudhry had declared the discretionary budget of the PM unconstitutional.
The project is still being implemented under PM’s directives; this time issued by Prime Minister Nawaz Sharif during his visit to Chakwal in July 2014.
Project documents show that the Planning Commission’s technical and financial appraisal sections raised objections over the ‘tremendous increase in cost’ and giving profit to the National Logistic Cell on certain components in violation of the PM Nawaz Sharif’s directions.
The CDWP ignored these objections.
LNG power plants: CDWP clears two projects at revised cost of Rs191b
During his visit to Chakwal in July 2014, PM Sharif, for the second time, inaugurated the Mandra-Chakwal Road and also approved expansion in scope of the work. Former PM Ashraf first inaugurated the project.
“As a result of (PM’s) directions, cost has increased from Rs4.7 billion to Rs10.1 billion, which is 115% high, but average increase in scope (of work) is around 31%,” according to findings of Transport & Communication section of the Planning Commission.
The technical section further noted that while approving the increase in the scope of work, the PM directed the NLC to construct it on a cost basis. However, the section observed that while revising the scope of work, the contractor had been allowed to claim profit, which was in violation of PM’s orders. The sponsoring agency allowed up to 58% increase in rates, showed the documents.
Ex-PM Ashraf had given the contract to the NLC in violation of Public Procurement Regulatory Authority (PPRA) Rules. The Islamabad High Court struck down the award of the contract. However, in competitive bidding, the NLC again won the contract by offering the lowest bid.
Under the scheme, the road between Mandra and Chakwal (64-kilometre patch) will be made into a dual carriageway besides construction of a flyover at Chakwal northern bypass. The condition of the existing road is dilapidated, causing sufferings to thousands of commuters.
According to the financial and economic analysis done by the PC, the per-kilometre construction cost of the project, excluding bypass component, has been increased from Rs67 million to Rs106 million, up 58% within a year.
Planning Commission’s version
“The PM’s directives have not been violated and the project is still at the approval stage,” said the official spokesman for the Planning Commission.
He said the PM’s directives led to an increase in the width of the road from 20 feet to 24 feet and 14 kilometre Northern bypass road was also added in the project scope. The increase was more than 31% and cannot be measured in percentage.
The spokesman said the NLC has been awarded the project on previous rates and only escalation has been authorised.
“The PC believes in transparency and has saved Rs570 billion through cost rationalisation of projects in the last two and a half years,” he added.
Published in The Express Tribune, January 10th, 2016.
The government has cleared the Mandra-Chakwal Road construction project at a revised cost of Rs10.1 billion, almost four times higher than its original estimate, as instructions of Prime Minister Nawaz Sharif and objections raised by technical wings keep getting ignored.
Headed by Planning, Development and Reform Minister Ahsan Iqbal, the Central Development Working Party (CDWP) cleared the scheme at a price of Rs10.1 billion in mid-December for final approval of the Executive Committee of National Economic Council (Ecnec).
Work on the project has already begun and Rs4.5 billion had been spent by November last year.
Govt green-lights three CPEC projects at 23% higher cost
Former prime minister Raja Pervez Ashraf had originally approved this scheme for his constituency, which was challenged in the court due to violation of rules in the award of contracts.
The National Accountability Bureau (NAB) had also launched an inquiry, which remains pending. The NAB-led inquiry is focused on the basis on which work for the projects was awarded, and the people who violated the procedures and released funds for the execution of the work.
The CDWP had initially approved this scheme in September 2012 at a cost of Rs2.7 billion. After coming into power, the PML-N government approved the project at a revised cost of Rs4.7 billion.
However, it has now made a second revision, increasing the cost by Rs7.4 billion - 375% higher than the 2012 original price.
Out of Rs7.4 billion, about Rs2.7 billion seems justifiable while the rest (Rs4.7 billion) of the increase remains unexplained, showed project documents. The scheme was among the projects that received Rs47 billion funding from PM’s discretionary funds during the last year of the PPP government. In December 2013, Supreme Court Judge Iftikhar Mohammad Chaudhry had declared the discretionary budget of the PM unconstitutional.
The project is still being implemented under PM’s directives; this time issued by Prime Minister Nawaz Sharif during his visit to Chakwal in July 2014.
Project documents show that the Planning Commission’s technical and financial appraisal sections raised objections over the ‘tremendous increase in cost’ and giving profit to the National Logistic Cell on certain components in violation of the PM Nawaz Sharif’s directions.
The CDWP ignored these objections.
LNG power plants: CDWP clears two projects at revised cost of Rs191b
During his visit to Chakwal in July 2014, PM Sharif, for the second time, inaugurated the Mandra-Chakwal Road and also approved expansion in scope of the work. Former PM Ashraf first inaugurated the project.
“As a result of (PM’s) directions, cost has increased from Rs4.7 billion to Rs10.1 billion, which is 115% high, but average increase in scope (of work) is around 31%,” according to findings of Transport & Communication section of the Planning Commission.
The technical section further noted that while approving the increase in the scope of work, the PM directed the NLC to construct it on a cost basis. However, the section observed that while revising the scope of work, the contractor had been allowed to claim profit, which was in violation of PM’s orders. The sponsoring agency allowed up to 58% increase in rates, showed the documents.
Ex-PM Ashraf had given the contract to the NLC in violation of Public Procurement Regulatory Authority (PPRA) Rules. The Islamabad High Court struck down the award of the contract. However, in competitive bidding, the NLC again won the contract by offering the lowest bid.
Under the scheme, the road between Mandra and Chakwal (64-kilometre patch) will be made into a dual carriageway besides construction of a flyover at Chakwal northern bypass. The condition of the existing road is dilapidated, causing sufferings to thousands of commuters.
According to the financial and economic analysis done by the PC, the per-kilometre construction cost of the project, excluding bypass component, has been increased from Rs67 million to Rs106 million, up 58% within a year.
Planning Commission’s version
“The PM’s directives have not been violated and the project is still at the approval stage,” said the official spokesman for the Planning Commission.
He said the PM’s directives led to an increase in the width of the road from 20 feet to 24 feet and 14 kilometre Northern bypass road was also added in the project scope. The increase was more than 31% and cannot be measured in percentage.
The spokesman said the NLC has been awarded the project on previous rates and only escalation has been authorised.
“The PC believes in transparency and has saved Rs570 billion through cost rationalisation of projects in the last two and a half years,” he added.
Published in The Express Tribune, January 10th, 2016.