Development work: Projects worth Rs343 billion approved despite budget cut
Central Development Working Party okays 79 projects.
ISLAMABAD:
The government on Friday approved 79 new projects worth Rs343.4 billion despite the fact that it cut the development budget by one-third of the quarterly allocation in the past three months.
Headed by Planning Commission (PC) Deputy Chairman Dr Nadeemul Haque, the Central Development Working Party approved 79 projects costing Rs343.47 billion, said an official handout released by the PC. For these projects, the government will take Rs135 billion new foreign loans.
For the current fiscal year, the government has allocated Rs300 billion for development projects. In the first quarter (July-September), it released only Rs49.3 billion against an allocation of Rs75 billion to keep the budget deficit within targeted limit.
While the PC approved 79 new projects, at the same time it is in the process of conducting a second rationalisation exercise in less than three months to close those projects which were approved in the past under political pressure. During the last one year, it has already closed or deferred hundreds of projects after finding no economic justification for them.
The official handout said that of the 79 projects, 60 were related to infrastructure, costing Rs317.9 billion. In the social sector, 17 projects costing Rs22.5 billion were approved.
The CDWP is authorised to approve projects costing up to Rs1 billion each. However, 35 projects, each costing over Rs1 billion, were recommended to the Executive Committee of National Economic Council (Ecnec) for final approval.
The PC said that after the 18th Amendment to the Constitution, the federal government has focused on implementation of infrastructure projects, being its primary responsibility.
In this sector, important projects like Hasanabdal-Havelian-Mansehra Expressway worth Rs46.8 billion, Lowari Tunnel and Access Roads Project Modified as a Road Tunnel costing Rs18.1 billion, Rehabilitation of Track on Lahore-Lalamusa Section with new signalling and telecommunication system costing Rs18 billion, Modernisation of Gaddani Ship-breaking and Recycling Industry and Development of Allied Facilities at Gaddani were approved.
In the energy sector, projects like Tarbela Fourth Extension Hydropower Project, mainly financed by the World Bank and costing Rs79.5 billion and Detailed Design and Construction of Matiltan Hydropower Project (84 megawatts) District Swat, costing Rs15.1 billion were cleared.
For rehabilitation and reconstruction of flood-hit areas, seven development schemes costing Rs5.5 billion were approved.
In the physical planning and housing sector, the Municipal Services Delivery Programme (MSDP) project for Sindh and Khyber-Pakhtunkhwa costing over Rs15 billion will be implemented with USAID assistance of Rs13 billion.
Twelve projects of the Higher Education Commission costing about Rs20 billion were approved. The main project was Indigenous PhD Fellowships for 5,000 Scholars.
Published in The Express Tribune, October 22nd, 2011.
The government on Friday approved 79 new projects worth Rs343.4 billion despite the fact that it cut the development budget by one-third of the quarterly allocation in the past three months.
Headed by Planning Commission (PC) Deputy Chairman Dr Nadeemul Haque, the Central Development Working Party approved 79 projects costing Rs343.47 billion, said an official handout released by the PC. For these projects, the government will take Rs135 billion new foreign loans.
For the current fiscal year, the government has allocated Rs300 billion for development projects. In the first quarter (July-September), it released only Rs49.3 billion against an allocation of Rs75 billion to keep the budget deficit within targeted limit.
While the PC approved 79 new projects, at the same time it is in the process of conducting a second rationalisation exercise in less than three months to close those projects which were approved in the past under political pressure. During the last one year, it has already closed or deferred hundreds of projects after finding no economic justification for them.
The official handout said that of the 79 projects, 60 were related to infrastructure, costing Rs317.9 billion. In the social sector, 17 projects costing Rs22.5 billion were approved.
The CDWP is authorised to approve projects costing up to Rs1 billion each. However, 35 projects, each costing over Rs1 billion, were recommended to the Executive Committee of National Economic Council (Ecnec) for final approval.
The PC said that after the 18th Amendment to the Constitution, the federal government has focused on implementation of infrastructure projects, being its primary responsibility.
In this sector, important projects like Hasanabdal-Havelian-Mansehra Expressway worth Rs46.8 billion, Lowari Tunnel and Access Roads Project Modified as a Road Tunnel costing Rs18.1 billion, Rehabilitation of Track on Lahore-Lalamusa Section with new signalling and telecommunication system costing Rs18 billion, Modernisation of Gaddani Ship-breaking and Recycling Industry and Development of Allied Facilities at Gaddani were approved.
In the energy sector, projects like Tarbela Fourth Extension Hydropower Project, mainly financed by the World Bank and costing Rs79.5 billion and Detailed Design and Construction of Matiltan Hydropower Project (84 megawatts) District Swat, costing Rs15.1 billion were cleared.
For rehabilitation and reconstruction of flood-hit areas, seven development schemes costing Rs5.5 billion were approved.
In the physical planning and housing sector, the Municipal Services Delivery Programme (MSDP) project for Sindh and Khyber-Pakhtunkhwa costing over Rs15 billion will be implemented with USAID assistance of Rs13 billion.
Twelve projects of the Higher Education Commission costing about Rs20 billion were approved. The main project was Indigenous PhD Fellowships for 5,000 Scholars.
Published in The Express Tribune, October 22nd, 2011.