ECNEC approves schemes worth Rs196b

Clears new mechanism for improving project management to cut planning, execution period

ISLAMABAD:

The federal government on Thursday approved half a dozen development schemes costing Rs196 billion and also cleared a new mechanism for improving project management to cut the planning and execution period.

Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh chaired a meeting of the Executive Committee of National Economic Council (Ecnec) which approved these schemes, according to a finance ministry statement.

Ecnec approved the simplification of development procedure to improve project management. The ministry claimed that reforms were needed in areas of project identification and preparation of PC-I, processing and approval of PC-I, project management and staffing, opening of project assignment account, procedure for release of funds, and monitoring and evaluation.

Pakistan’s existing project concept process is largely driven by foreign lenders and most of the time the concerned ministries and divisions hardly give any input. There are also usual bureaucratic delays in the project approval process on part of the Planning Commission.

Ecnec approved the Indus Highway (N-55) additional carriageway project - the Shikarpur-Rajanpur section having total length of 222 kilometres. The project will be completed at a cost of Rs44.7 billion.

The Asian Development Bank (ADB) will also share the cost and give a loan of Rs40.2 billion. The project, which will be completed in three years, envisages construction of additional two lanes and widening/ rehabilitation of the existing two-lane carriageway of the Shikarpur-Rajanpur section of Indus Highway N-55.

The National Highway Authority (NHA) shall be responsible for the execution, operation and maintenance of the project and just Rs1 billion has been allocated in the federal Public Sector Development Programme (PSDP) for the completion of the project in the current fiscal year.

The construction of Rajanpur-DG Khan section of N-55 was also approved by Ecnec at a cost of Rs33.2 billion. The ADB will provide Rs28.5 billion in loan for the project.

It will be completed in three years by the NHA. The project road starts from Rajanpur and passes through Fazilpur, Muhammad Pur Dewan, Jampur and terminates at Dera Ghazi Khan. A meagre amount of Rs500 million has been allocated in the budget for the current fiscal year.

Successive political governments, including that of the Pakistan Tehreek-e-Insaf (PTI), have been approving new schemes for years without caring for the growing unfunded project portfolio. There is hardly any project in recent history that has been completed within the stipulated time due to lack of funds.

The dualisation and rehabilitation of DG Khan-DI Khan section of N-55 was also approved by Ecnec at a cost of Rs52.3 billion. The ADB will extend a loan of Rs45 billion. The project will be completed in three years by the NHA. The project road starts from DG Khan, passes through Shah Sadar Din, Kala, Shahdan Lund, Taunsa, Tibi Qasrani, Mahra, Paroa and terminates at DI Khan. Again, only Rs500 million has been allocated in this year’s budget.

Ecnec also approved the rehabilitation and upgrade of 80km Jhaljao-Bela Road at a cost of Rs11.1 billion. The project will be completed in three years by the NHA. The project road starts from Jhaljao and terminates at Bela, Awaran district. The road traverses through towns of Augani, Sipai Sing, Chauki and finally terminates at Bela.

It is expected that the completion of the project will save vehicle travel time and vehicle operating costs for the commuters. Ecnec approved the 32.2km Peshawar Northern Bypass Project at a revised cost of Rs21.4 billion. The project envisages construction of a 32.2km, four-lane bypass with service roads on either side, on the northern side of Peshawar city.

Ecnec approved, in principle, the Locust Emergency and Food Security Project. The World Bank will provide $200 million or Rs33 billion in loan for the project.

Published in The Express Tribune, October 2^nd, 2020.

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