CDWP meeting: Nandipur project okayed with 160% higher cost
Govt will ‘fix’ people responsible for the delay and escalation in costs.
Overall, the CDWP approved nine projects with an estimated cost of Rs74 billion as it shortened the original agenda because of paucity of time. DESIGN: MAHA HAIDER
ISLAMABAD:
The federal government has cleared the much-delayed 425-megawatt Nandipur Power Project at an estimated cost of Rs57.4 billion, higher by 160% over the initial cost, and has decided to fix those who are responsible for the delay and cost escalation.
The decision was taken by the Central Development Working Party, headed by Planning Minister Ahsan Iqbal, here on Tuesday. After the CDWP’s clearance, the project will now be taken to the Executive Committee of National Economic Council (Ecnec) for final endorsement.
The move comes just 48 hours before Prime Minister Nawaz Sharif’s scheduled visit to China where he is expected to take up the Nandipur project with his counterpart aimed at pursuing Chinese contractors to complete the project at the earliest.
Overall, the CDWP approved nine projects with an estimated cost of Rs74 billion as it shortened the original agenda because of paucity of time.
The committee discussed the Nandipur project comprehensively and asked the authorities concerned to settle all outstanding issues before Ecnec meeting, said Asif Sheikh, spokesman for the Planning Commission.
Sheikh said the initial cost of the project was Rs22 billion that has increased to Rs57.4 billion following delay in execution.
The machinery imported for the project has remained stuck at the Karachi Port for over three years as the Ministry of Law could not clear sovereign guarantees for the project. The Supreme Court has also taken suo motu notice of the case and issued a notice to former law minister Babar Awan for alleged negligence.
In his budget speech on June 12, Finance Minister Ishaq Dar had announced that the government would take action against all those who delayed the project for their own interests.
The CDWP put off decision on the 150MW Sharmai hydropower project, sponsored by the Khyber-Pakhtunkhwa government, after finding its Rs33.5 billion cost too high.
CDWP Chairman Ahsan Iqbal constituted a three-member committee, headed by Lieutenant General (retired) Shahid Niaz, Member Implementation & Monitoring of Planning Commission, to rationalise the cost.
The CDWP also approved a Rs1.7 billion project to upgrade security equipment at all international airports of the country. Japan will finance the project and the equipment supplier will certify that radiations are not harmful to human health, said Sheikh.
The committee also cleared a Rs8.2 billion project of the Punjab government for creating economic opportunities in the province.
The Sindh government’s project to provide sustainable livestock opportunities in rural areas also won approval at an estimated cost of Rs877.5 million.
The CDWP gave the go-ahead to a Rs4.9 billion road project to add more lanes to the busiest Kashmir Highway of Islamabad for a smooth flow of traffic.
Published in The Express Tribune, July 3rd, 2013.
The federal government has cleared the much-delayed 425-megawatt Nandipur Power Project at an estimated cost of Rs57.4 billion, higher by 160% over the initial cost, and has decided to fix those who are responsible for the delay and cost escalation.
The decision was taken by the Central Development Working Party, headed by Planning Minister Ahsan Iqbal, here on Tuesday. After the CDWP’s clearance, the project will now be taken to the Executive Committee of National Economic Council (Ecnec) for final endorsement.
The move comes just 48 hours before Prime Minister Nawaz Sharif’s scheduled visit to China where he is expected to take up the Nandipur project with his counterpart aimed at pursuing Chinese contractors to complete the project at the earliest.
Overall, the CDWP approved nine projects with an estimated cost of Rs74 billion as it shortened the original agenda because of paucity of time.
The committee discussed the Nandipur project comprehensively and asked the authorities concerned to settle all outstanding issues before Ecnec meeting, said Asif Sheikh, spokesman for the Planning Commission.
Sheikh said the initial cost of the project was Rs22 billion that has increased to Rs57.4 billion following delay in execution.
The machinery imported for the project has remained stuck at the Karachi Port for over three years as the Ministry of Law could not clear sovereign guarantees for the project. The Supreme Court has also taken suo motu notice of the case and issued a notice to former law minister Babar Awan for alleged negligence.
In his budget speech on June 12, Finance Minister Ishaq Dar had announced that the government would take action against all those who delayed the project for their own interests.
The CDWP put off decision on the 150MW Sharmai hydropower project, sponsored by the Khyber-Pakhtunkhwa government, after finding its Rs33.5 billion cost too high.
CDWP Chairman Ahsan Iqbal constituted a three-member committee, headed by Lieutenant General (retired) Shahid Niaz, Member Implementation & Monitoring of Planning Commission, to rationalise the cost.
The CDWP also approved a Rs1.7 billion project to upgrade security equipment at all international airports of the country. Japan will finance the project and the equipment supplier will certify that radiations are not harmful to human health, said Sheikh.
The committee also cleared a Rs8.2 billion project of the Punjab government for creating economic opportunities in the province.
The Sindh government’s project to provide sustainable livestock opportunities in rural areas also won approval at an estimated cost of Rs877.5 million.
The CDWP gave the go-ahead to a Rs4.9 billion road project to add more lanes to the busiest Kashmir Highway of Islamabad for a smooth flow of traffic.
Published in The Express Tribune, July 3rd, 2013.