CDWP clears seven schemes of Rs283 billion

Sends Peshawar metro bus project for ECNEC’s approval at 38% higher cost

ISLAMABAD: The federal government cleared on Wednesday seven development schemes at a cost of Rs283 billion including the Peshawar metro bus project which was approved at 38% or Rs18-billion higher cost compared to the initial estimate of the provincial government.

In its maiden meeting, the Central Development Working Party (CDWP) gave the go-ahead to five projects costing Rs141.93 billion and referred two schemes of Rs141 billion to the Executive Committee of National Economic Council (Ecnec) for approval. According to its mandate, the CDWP can approve projects of up to Rs3 billion.

The CDWP deferred approval for the Sindh government’s Red Line Bus Rapid Transit System (BRTS) due to objections over its modalities. The Rs65.6-billion project was proposed to be financed by the federal and provincial governments through loans from the Asian Development Bank, Asia Infrastructure Investment Bank, French Agency for Development and Green Climate Fund.

Its cost was calculated at an exchange rate of Rs115 to a dollar as opposed to the prevailing rate of around Rs133.

Federal Minister for Planning, Development and Reform and Planning Commission Deputy Chairman Makhdoom Khusro Bakhtiar chaired the CDWP meeting. The projects presented for approval were related to agriculture, food, physical planning and housing, energy, transport and communications, etc.



The CDWP referred the Peshawar Sustainable Bus Rapid Transit Corridor project with a revised cost of Rs68 billion for Ecnec’s approval, according to a statement issued by the Ministry of Planning.

The project had been designed to provide a high-quality mass transit facility which would promote urban development, activities and density along the BRT corridor, thus improving economic growth besides giving access to the city, it added.

However, three months ago, the caretaker government had put off approval of the metro bus project at a cost higher by 38% or Rs18 billion. The cost of the pet project of the last PTI provincial government was reportedly increased from Rs49.4 billion to Rs68 billion.

The 38% increase within one year of the project’s initial go-ahead suggests that the provincial government had launched the scheme without proper research.



The original PC-I of the project was approved by Ecnec in July 2017. The last government sought the 38% increase in the cost despite reducing the number of bus stations and buses. In its technical appraisal, the planning ministry wrote, “Proper working on the project’s design was not carried out, based on ground conditions, investigations at the preliminary design stage. From the preliminary design phase to the detailed design phase, there are generally no major deviations, as is in the case which could have resulted in 38% increase from the original cost,” it added.

In a more glaring comment, the ministry wrote that the revised PC-I stated that international competitive bidding (ICB) had been carried out for the selection of the contractor. However, local firms were chosen for the execution of works.

The interim finance minister had constituted a committee to review the revised PC-I of the Peshawar metro project, but its findings were not shared with the CDWP.

The CDWP also approved the upgrading of the Arid Zone Research Centre and establishment of a new adaptive research-cum-demonstration institute at a cost of Rs691.6 million. The main focus of the project would be on poverty alleviation through the introduction of improved agricultural technologies in project areas. Research centres would also strengthen the linkages with provincial and international research organisations.

The CDWP referred the Lahore Water and Wastewater Management Project worth Rs67.5 billion to Ecnec.

In the energy sector, the project of 220-kilovolt Head Faqirian Sub-station along with 220kv Double Circuit Transmission Lines from Head Faqirian to Ludewala was also sent to Ecnec for approval.

The project will be completed at a cost of Rs5.5 billion and is aimed at improving the power supply system including reliability and uninterrupted supply.

In the health sector, the project for strengthening the monitoring and surveillance of health systems was sent to Ecnec’s approval by the CDWP. The project is worth Rs157.8 million and is aimed at improving access to healthcare services by providing facilities at people’s doorsteps.

Published in The Express Tribune, October 18^th, 2018.

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