AGL 40.01 Decreased By ▼ -0.20 (-0.5%)
AIRLINK 127.00 Decreased By ▼ -0.64 (-0.5%)
BOP 6.69 Increased By ▲ 0.02 (0.3%)
CNERGY 4.51 Increased By ▲ 0.06 (1.35%)
DCL 8.64 Decreased By ▼ -0.09 (-1.03%)
DFML 41.04 Decreased By ▼ -0.12 (-0.29%)
DGKC 85.61 Decreased By ▼ -0.50 (-0.58%)
FCCL 33.11 Increased By ▲ 0.55 (1.69%)
FFBL 66.10 Increased By ▲ 1.72 (2.67%)
FFL 11.55 Decreased By ▼ -0.06 (-0.52%)
HUBC 111.11 Decreased By ▼ -1.35 (-1.2%)
HUMNL 14.82 Increased By ▲ 0.01 (0.07%)
KEL 5.17 Increased By ▲ 0.13 (2.58%)
KOSM 7.66 Increased By ▲ 0.30 (4.08%)
MLCF 40.21 Decreased By ▼ -0.12 (-0.3%)
NBP 60.51 Decreased By ▼ -0.57 (-0.93%)
OGDC 194.10 Decreased By ▼ -0.08 (-0.04%)
PAEL 26.72 Decreased By ▼ -0.19 (-0.71%)
PIBTL 7.37 Increased By ▲ 0.09 (1.24%)
PPL 153.79 Increased By ▲ 1.11 (0.73%)
PRL 26.21 Decreased By ▼ -0.01 (-0.04%)
PTC 17.18 Increased By ▲ 1.04 (6.44%)
SEARL 85.60 Decreased By ▼ -0.10 (-0.12%)
TELE 7.57 Decreased By ▼ -0.10 (-1.3%)
TOMCL 34.39 Decreased By ▼ -2.08 (-5.7%)
TPLP 8.82 Increased By ▲ 0.03 (0.34%)
TREET 16.82 Decreased By ▼ -0.02 (-0.12%)
TRG 62.55 Decreased By ▼ -0.19 (-0.3%)
UNITY 27.29 Decreased By ▼ -0.91 (-3.23%)
WTL 1.30 Decreased By ▼ -0.04 (-2.99%)
BR100 10,112 Increased By 26 (0.26%)
BR30 31,188 Increased By 17.5 (0.06%)
KSE100 94,996 Increased By 232 (0.24%)
KSE30 29,481 Increased By 71 (0.24%)

There are certain things in the life of a nation, which are extremely harmful for its development but unfortunately, become a part of its culture. Delays in the implementation of projects in Pakistan is one of those routine events that are very inimical but often ignored or hardly taken notice of because of their vast prevalence.
In a recent meeting presided over by the Minister of Water and Power, for instance, it was revealed that three major water sector projects - Mangla dam raising, Katchhi canal and Gomal Zam dam - are suffering from cost overruns and slow implementation due to poor planning, faulty monitoring and security problems.
These projects costing Rs 150 billion were part of seven major irrigation schemes launched by the Musharraf government. The Rs 64 billion Mangla dam project was reported to be behind schedule. Its two components Dhangali Bridge and Jeridam could not go beyond completion of 15 percent and 55 percent respectively against their targeted schedule of 80 percent. The Katchhi canal project was started in 2002 with an estimated cost of Rs 31.2 billion and was to be completed by June 2008.
The project cost, according to Wapda sources, has now increased to about Rs 70 billion, or more than double the original estimates, because it was initiated in 2002 without proper planning and meeting the necessary procedural codes. The government is reported to have ordered an investigation to fix the responsibility.
The Rs 13 billion Gomal Zam dam in Balochistan had, likewise, been delayed by more than two years due mainly to security problems and a new contract had now been given to Frontier Works Organisation (FWO) of Pakistan Army to complete it at a negotiated price, which is being kept secret for the time being.
The meeting, after a detailed briefing and discussion, is reported to have taken certain decisions. The Prime Minister would be updated about the progress on the projects.
The Secretary, Ministry of Water and Power, was directed to conduct an inquiry into the cost overruns and implementation delays as regards the Katchhi canal project and he has to submit a report within two months for disciplinary and legal action. The meeting also decided to depute a permanent representative of the Ministry of Water and Power to monitor the mega projects so that the ministry could keep abreast of the progress of work on these projects.
Sadly, this is not the first time that such an unfortunate development has been noticed. Our past history is replete with instances when projects were designed and announced with great fanfare but were subsequently abandoned or delayed for a variety of reasons. This callous attitude has cost the country dearly and shows that projects are not planned carefully and taking into account all the likely unforeseeable developments. In fact, even the projections for macro-aggregates like growth and exports are made and publicised in the hope that all the factors impacting these aggregates would remain favourable, which is never going to be the case.
The mechanism for implementing the projects is also very much less than perfect with the result that cost overruns are routine, which increases the amount of debt and debt servicing, the country is deprived of the benefits that were likely to accrue, and people lose trust in the government's pronouncements. Another loss is the payment of commitment fee on foreign loans in foreign exchange in case the country does not utilise the project loans in time, which often is the case. We are a poor country and cannot afford this luxury of commission and omission.
The Ministry of Water and Power, in our view, has made a good beginning in monitoring projects, that needs to be followed earnestly to change the culture of criminal waste. One of the difficulties in following such a course could be the continued tussle between the Ministry of Water and Power and Wapda, a battle for turf that needs to be sorted out. The appointment of a permanent representative of the ministry to monitor the projects could help but intervention at a higher level may be needed to ensure a better relationship between the two organisations.
In the meantime, other departments of the government also need to undertake such exercises to determine the reasons for delays, if any, in the implementation of their projects and remove the bottlenecks in order to ensure smooth and timely implementation of projects falling within their domain.

Copyright Business Recorder, 2006

Comments

Comments are closed.