New projects, scarce resources: PM’s commission questions fresh projects worth Rs617b

Planning Commission asked to explain why new projects have been approved when ongoing projects have been delayed.

ISLAMABAD: The Planning Commission has been asked by the Prime Minister’s Inspection Commission to explain why new projects worth Rs617 billion have been approved at a time when ongoing projects have been delayed due to lack of funds.

Sources in the Planning Commission told The Express Tribune that the Prime Minister’s Inspection Commission has asked for details on the status of ongoing schemes and the reason for approving new projects in times of a severe financial crunch. The commission will give a detailed briefing to the Inspection Commission from December 22 to 24, they added.

“Projects of strategic importance have been delayed for years due to non-availability of funds and the government is approving new schemes,” said Malik Amjad Ali Noon, chairperson of the commission. He said the commission has decided to inspect five mega projects as a case study. “We want to know why these projects have been delayed and where the inefficiency lies,” he added.

The Executive Committee of the National Economic Council (Ecnec) approved 33 new development projects costing  Rs617 billion on December 9. With the approval of the new schemes, the total outlay of the federal development portfolio has soared to Rs3.2 trillion, almost equal to the size of this year’s national budget.

According to the Planning Commission’s own estimates at least five years are needed to complete the ongoing projects due to fiscal constraints. Last month, the government cut its development budget by half to Rs140 billion to spare funds for other projects of priority.

The commission has sought details on why five mega projects have been lingering for years, sources said. These projects include National Project of Improvement of Watercourses, Rainee Canal Project, Neelum Jehlum Hydropower Project, Expanded Programme on Immunisation and Nilter Hydropower projects.

The watercourses improvement project was approved in December 2004 by Ecnec at a capital cost of Rs66.4 billion with federal government’s share of Rs50.7 billion. However, because of delays, the federal government has already provided Rs87.4 billion. The delay in the completion is also resulting in wastage of water.

The Rainee Canal project was commenced in 2008 with an estimated cost of Rs18.9 billion. The project is slow moving and its cost has already shot over Rs42 billion. The Neelum Jehlum Hydropower project is falling behind schedule too. This is likely to result in losing priority rights on river Jehlum waters, as India will complete the Kishanganga project before the NJ project. Under the Indus Basin Treaty of 1960, the priority rights on the Jehlum river water will be given to the country that completes its project first.

The inspection commission has received complaints of irregularities in the Expanded Immunisation programme, sources said.

Published in The Express Tribune, December 19^th, 2010.