ISLAMABAD(National Times)- The Central Development Working Party (CDWP) has cleared five development projects involving an estimated cost of over Rs60 billion, including a multi-billion-rupee water supply project to provide water from Mirani Dam to Gwadar through a 125-kilometre pipeline.
The CDWP meeting, presided over by Planning Minister Ahsan Iqbal, approved three development projects with a combined estimated cost of Rs11.7bn. It recommended two other projects worth Rs48.545bn for approval by the Executive Committee of the National Economic Council (Ecnec), including the procedural clearance of the Rs19.55bn Karachi Neighbourhood Improvement Project (KNIP), which is already nearing completion with a World Bank loan.
Under the current financial rules approved by the National Economic Council (NEC), the CDWP is empowered to approve projects costing up to Rs7.5bn, while projects with higher estimated costs are approved by Ecnec on the recommendations of the CDWP after technical clearance.
Based on a technical evaluation by the Planning Commission, the CDWP recommended reducing the estimated cost of the “Construction of Water Supply Scheme to Gwadar Town from Mirani Dam under Balochistan Socio-Economic Development Projects Phase-III” by around 20 per cent to Rs23.82bn, against the Rs29bn proposed by the Balochistan government. The reduction would result in an estimated saving of Rs5.235bn without any change in the design or scope of the project.
The Planning Commission rationalised the project cost by 20 per cent, exclusively under non-scheduled items, which account for approximately Rs23.4bn, or 86.7pc, of the base cost, by curtailing contractor overheads.
It has, however, asked Ecnec to approve the project subject to satisfactory resolution of outstanding technical observations, particularly regarding demand figures, hydrology, confirmation of the water source, procurement strategy, land acquisition status, a self-sustainable operation and maintenance (O&M) strategy, and a realistic implementation plan.
While reviewing the project, Minister Ahsan Iqbal directed the provincial government to initiate a study on wastewater treatment in Gwadar, observing that the city should not be allowed to become another Karachi, with sewage polluting the sea.
He also allowed the project to proceed to the bidding stage to save time, but directed that the contract should not be awarded until the project receives approval from Ecnec.
The CDWP also cleared the “Karachi Neighbourhood Improvement Project”, with a revised cost of Rs19.55bn, for approval by Ecnec. The project is proposed to be financed through foreign funding, including an $85 million (Rs16.7bn) World Bank loan and Rs2.8bn contributions from the Sindh government.
While discussing the Karachi project, the CDWP constituted a committee comprising the Planning Commission’s member (Population), member (Infrastructure) and a representative of the Economic Affairs Division (EAD) to develop a comprehensive framework for effective monitoring, transparency and accountability of foreign-funded development projects.
Of the three smaller projects, with a combined estimated cost of Rs11.714bn, the CDWP approved the establishment of a Medical and Nursing College at Gilgit at an estimated cost of Rs4.924bn.
The CDWP also approved the establishment of a National Defence University (NDU) FCS Campus at Defence Complex Islamabad (DCI) at an estimated cost of Rs2.75bn.
It also approved the “Construction of Road from Zera to Daboori, District Orakzai (53.4 km)” at a cost of Rs4.037bn. The minister directed that funds be released before the winter season to facilitate completion of the project, which has been lingering since 2016.
