CDWP clears Rs178 billion Malakand Tunnel project

Tunnel will link Mardan, Malakand and Chitral; serve as a trade route with Central Asia

ISLAMABAD: Despite a huge backlog of unfinished schemes, the government on Thursday added Rs360 billion worth of two and a half dozen more projects to its development portfolio, further thinning out already scarce resources.

Headed by Planning Commission Deputy Chairman Sartaj Aziz, the Central Development Working Party (CDWP) cleared 31 schemes. A dozen of them valuing at Rs342 billion have been recommended for final approval of the Executive Committee of National Economic Council (Ecnec), according to the Ministry of Planning.

The CDWP cleared the construction of Malakand tunnel at a cost of Rs177.9 billion. It also endorsed implementation of the second phase of Prime Minister’s National Health Insurance programme at a cost of roughly Rs33 billion.

The Planning Commission had reservations about that project as health was a provincial subject. Yet the CDWP chairman approved the scheme on the insistence of Health Minister Saira Afzal Tarar while setting aside the objections.



The government has approved these projects despite serious resource constraints. The inclusion of more schemes to the federally-funded Public Sector Development Programme will further squeeze the funding pot.

The total financing required for completing ongoing and new projects stands at over Rs5.7 trillion and at the current pace of allocations, the government will need about seven years to complete the schemes.

The CDWP cleared the way for construction of Malakand Tunnel on the N-45 National Highway. The tunnel will link Mardan, Malakand and Chitral. It will serve as a trade route between Pakistan, Tajikistan and other Central Asian countries.

However, the Khyber-Pakhtunkhwa government is also constructing an expressway parallel to this tunnel, which may result in overlapping of projects.

In the energy sector, the CDWP approved three projects worth Rs3.714 billion. In addition to these, three energy projects worth Rs41.387 billion were referred to Ecnec for final approval. The CDWP considered two projects of water resources with total proposed cost of Rs16 billion. Both were referred to Ecnec for its consideration.

The water resources projects include construction of 200 dams/check dams in Killa Abdullah, Gulistan and Dobandai tehsils, Killa Abdullah district and construction of Garuk Storage Dam, Kharan district, Balochistan.

The CDWP also recommended for approval two projects of transport and communications with total proposed cost of Rs193 billion. Both the projects will now be reviewed by Ecnec.

The projects included design, tendering assistance and construction of Malakand Tunnel valuing Rs177.9 billion, and procurement/construction of maritime patrol vessels (4 x 600 tons and 2 x 1,500 tons) for the Pakistan Maritime Security Agency at a cost of Rs15.948 billion.

A total of nine physical planning and housing projects were discussed in the CDWP meeting, of which seven were approved and one was referred to Ecnec. The total proposed cost of these projects was Rs28 billion.

The CDWP also considered four science and technology projects, of which three were approved. The cost of these projects was Rs2.35 billion

It reviewed five projects of industries and commerce out of which three were approved and one was referred to Ecnec. Among the projects approved were a fruit, vegetable and condiment processing centre to be built in Naushehro Feroze, the National Business Development Programme for SMEs and Product Development Centre for Composite-based Sports Goods.

The CDWP approved a governance project at a total cost of Rs732 million. The project was named CPEC Support Project of the Ministry of Planning, Development and Reform.

In the environment sector, the CDWP approved one project costing Rs193.6 million. The project was about generation of global environmental benefits from improved decision-making processes.

Published in The Express Tribune, October 20^th, 2017.

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