Earth, draining, erosion projects: MoC blocked move to spend Rs 13.11 billion

Planning Commission has blocked the move of Ministry of Communication to spend Rs 13.11 billion on earth, draining and erosion works which is 70 percent of total construction cost of 'Improvement and Widening of Jaglot-Skardu Road' project, and for which China is ready to provide loan, Business Recorder has reliably learnt.
Ministry of Communication has raised project cost from Rs 21.0 billion to Rs 26.5 billion over which Planning Commission raised serious concern and project was not recommended for Executive Committee of National Economic Council (Ecnec) for approval. During visit of the President Asif Ali Zardari, China showed its interest to provide financial assistance for the project and Memorandum of Understanding (MoU) was signed.
According to sources, Ministry of Communication has worked out the cost of earthwork (Rs 6, 840.5 million) and drainage and erosion works (Rs 6, 277.2 million) totalling to Rs 13, 117.7 million that is about 70 percent of the construction cost of project.
In the meeting of Central Development Working Party (CDWP) held on November 3, 2010, Chief T&C said that due to higher cost on earth, erosion and drainage works, project cost needed to be reviewed.
Chief T&C, Planning Division, said that the project sponsored by the Ministry of Communication/NHA at a cost of Rs 26,454.00 million envisaged improvement, widening and up-gradation of the existing 3.8m to 5.0m wide, 167km Strategic Road (S-I) from Jaglot to Skardu to a standard width of 7.3m along with allied structures and facilities. The proposed road section which is the only road link, connecting Islamabad and other parts of the country with Northern Areas, takes off from Karakoram Highway (KKH, N-35) from Jaglot town about 45km before reaching Gilgit and terminates at Skardu.
He said that the project is proposed to be funded through Chinese financial assistance. While presenting the project, he said that observations raised in the working paper for the CDWP were discussed with the Sponsoring Agency/NHA before start of the meeting and these were resolved. However, the cost of earthwork (Rs 6,840.5 million) and drainage and erosion works (Rs 6,277.2 million) totalling to Rs 13,117.7 million is about 70 percent of the construction cost of project, which being high cost, needed to be reviewed.
Secretary, Communication Division agreed to review the cost of the project in consultation with stakeholders with the request to recommend the project at reviewed cost for approval of ECNEC.
Ghulam Mohayuddin Marri, Member Infrastructure, Planning Commission, while observing dichotomy of varying figures of the project cost from Rs 21.0 billion to Rs 26.5 billion, stated that instead of recommending the project with reviewed cost for approval of ECNEC, the same should again be placed before the next CDWP for its consideration.
Secretary, Communication while welcoming the observation of Member Infrastructure, stressed that by doing so, it was apprehended that approval of project may be delayed due to late convening of next CDWP meeting. He further said that the project being strategically important for the country's economic development was taken up on high level directives of the Prime Minister and the President.
Secretary, P&D Division as Chairman CDWP while supporting the views of Secretary Communication observed that being high cost of the project its careful review was necessary as recommended by Member Infrastructure.
CDWP decided to review the scope and cost of project by the Sponsoring Agency/NHA in consultation with Finance Division and Planning Commission. The reviewed scope and cost of the project would be placed before the next CDWP meeting for consideration.