RR project sees cost hike amid delays

Key infrastructure scheme's cost rises by Rs13b after multiple revisions

RAWALPINDI:

The much-anticipated Rawalpindi Ring Road project, long regarded as a critical infrastructure 'missing link,' has seen 29 per cent of its construction completed, despite facing numerous delays and cost revisions.

Initially launched with a budget of Rs26 billion, the project has seen its cost revised multiple times, now reaching Rs39 billion, as per the latest estimates.

These revisions come as a result of inflation, rising material costs, and adjustments mandated by the Central Development Working Party (CDWP), which directed the inclusion of escalation charges in the revised project plan.

The Rawalpindi Development Authority (RDA), which is overseeing the project, recently submitted a new Project Concept-1 (PC-1) with the revised cost to the Secretary of Housing. The proposal will now pass through the Punjab Planning and Development Wing (PDWP) and CDWP before being sent to the Executive Committee of the National Economic Council (ECNEC) for final approval.

The Rawalpindi Ring Road stretches for 38.8 kilometres, beginning at Banth Mor on GT Road and ending at the Thalian Interchange on the motorway. However, progress on the project has been slow, with only 29 per cent of the work completed so far. The initial completion deadline has now been extended to June 2025, reflecting the challenges the project has faced in its implementation.

The original contract for the project was awarded to Frontier Works Organization (FWO) at a cost of 26 billion rupees. However, due to inflationary pressures and increased material costs, the RDA was forced to revise the project's cost, raising it initially to Rs44 billion.

The PDWP later reduced this figure to Rs32.9 billion before it was sent for approval to the CDWP. Subsequently, the CDWP instructed the RDA to prepare a further revised PC-1 incorporating updated cost escalation figures, which led to the current estimate of Rs39 billion.

The Rawalpindi Ring Road project has been in the pipeline for over three decades, facing delays and modifications under various governments. During the administration of Imran Khan, the project became embroiled in a financial scandal that led to the arrests of several officials, including a former commissioner. After this controversy, the project was limited to its original route and was finalised during the tenure of the Pakistan Democratic Movement (PDM) government.

Despite the progress, the pace of construction has remained behind schedule, with significant portions of the work still incomplete.

Currently, 71 per cent of the project's construction remains to be done, and the contractor has been instructed to complete the remaining work by June 2025. However, there has been no final decision regarding the establishment of economic zones along both sides of the road, a key demand by the business community in Rawalpindi and Islamabad. Sources indicate that the decision to set up these economic zones will likely be made after the completion of the road itself.

While the project's route will not be altered, the RDA and relevant authorities have reiterated their commitment to completing the Rawalpindi Ring Road within the revised timeframe and budget. The road, once completed, is expected to significantly reduce traffic congestion and promote economic development in the region.

However, the escalating costs and delays have raised concerns about the project's timely completion.