CAA’s ‘tunneled vision’ approach may hit Islamabad, Gwadar Airports’ projects

ISLAMABAD: A parliamentary panel on Thursday was informed that the New Islamabad International Airport Project and Gwadar International Airport Project may face irreparable damage and loss of billions of rupees to the public exchequer due to persistent “tunneled vision” approach of the Civil Aviation Authority (CAA).

The matters related to “unusual phenomenon” at the AIAP Airport Lahore, non-payment of US, Saudi Arabia and the UAE to the CAA, enforcements at CAA lands near airports, non-payment of dues from inactive airlines were taken in a sub-committee meeting of the Public Accounts Committee (PAC).

Convener Committee Munaza Hassan attributed that all the issues highlighted by audit reports were the result of incompetence, responsibilities and sympathy factor of the CAA towards the violators.

The committee was apprised that the new terminal of the AIAP Lahore was constructed by the CAA at a cost of Rs10.23 billion, and was made operational in March 2003.

Within a span of few years after its operation, the pavement quality concrete (PQC) slabs started movement toward Terminal Building (TB).

After failure of some quick fix solutions, consultancy contract was given to Pakistan Consulting Associates (PCA) for Rs192.56 million.

The consultant report placed the blame on original design consultants Flughafen AG and ADP-Nespak.

The design period was for 20 years and 17 years have already passed but the relevant department failed to find out the unusual phenomenon.

Advisors of Nespak appeared with various explanations, which the committee did not accept, and directed Secretary Aviation Hassan Nasir Jamy to submit a detailed report and opinion of technical experts of the Pakistan Engineering Council (PEC) within one month.

Audit noted that no attention was paid by PCA towards most critical issues of land reclamation for building such large scale project, accurate assessment of rate of settlement based on results of site investigation, and laboratory report and relocation and diversion of natural water courses and drains.

“In case, timely corrective measures are not taken, huge volume of moving slabs hit foundation of terminal building (AIIAP), like collision of tectonic plates, resulting in partial damage, collapse of certain portions or collapse of whole structure,” audit observes.

Secretary Aviation questioned the technical expertise of audit for giving above observations.

In another case, audit officials was informed that US government has to clear dues of Rs280 million charged for using Pakistan airspace and receipt was submitted under coalition support fund (CSF).

Amounts need to be recovered from the UAE and the Saudi governments.

The total amount against the countries is Rs346.080 million.

The secretary informed the committee that the matter was taken up with the US Embassy via the Ministry of Defence, and also pursuing for recovery of the amount from other countries.

The audit also observed that there was no mechanism in place to monitor the recovery and to take timely action under the revenue generating activity (internal control manual) of the CAA.

Due to delay in timely action towards realisation, the outstanding aeronautical charges accumulated to Rs25.8 billion, which might become irrecoverable with the passage of time.

The Secretary Aviation acknowledged that regulator must be strong to take timely action against those inactive airlines, Shaheen Air International (SAI), AeroAsia and Bhoja Airline, which shut down their operations without settlement of their dues with the CAA.

Shaheen Airline International has yet to make payment of Rs1.5 billion to the CAA, which had shut their business long time ago.

Audit contended that the authority was at the verge of bankruptcy due to non payments by the PIA (Rs130 billion) to the CAA.

The Convener Committee observed that the CAA officials renewed the licences of default inactive airline and did not timely receive the charges from them.

Audit further observed that despite expiry of 25 years, 339 acres of land was not mutated in the name of the CAA.

Due to non-mutation, several claimants, grabbers of the land appeared. Consequently, the CAA got entangled in litigation.

The committee expressed its serious concern over encroachments on the CAA land adjacent to airports in Karachi, Lahore, Hyderabad, and legal department of CAA failed to vacate the court cases pending in various courts of law.

Copyright Business Recorder, 2020