The Planning and Development Division has expressed dissatisfaction over external financial assistance in Karachi in the past, saying that it was piecemeal, with no integrated approach to improve urban infrastructure and services on sustainable basis.
Commenting on Lyari Expressway resettlement project (revised), to be considered by the Executive Committee of National Economic Council (Ecnec) in its meeting on Thursday, Secretary, Planning and Development, Suhail Safdar, stated that the immense size of Karachi, the magnitude of investment requirements, and scale of needs for urban policy and institutional reforms suggest that challenges of this mega city cannot be addressed with a traditional approach of one-off projects.
The project cost has been revised, upward, to Rs 8.72 billion from the original estimate of Rs 4.685 billion. Sources said that the enhanced cost of Rs 4.034 billion on account of resettlement works/arrangements has been agreed, to be shared between the federal and provincial governments as follows:
I. The federal government must share 50 percent of the enhanced cost to a maximum level of Rs 2.017 billion.
II. The remaining 50 percent cost would be shared amongst the provincial government and City District Government (CDG). Sources said that any further increase in the cost would be borne by the provincial government/CDG.
The Lyari is being constructed along with the bank of Lyari River, which is approximately 16.4 km long, and is connecting Sohrab Goth with Mauripur, thus easing out movement of heavy traffic from the city. The original scheme, costing Rs 2871.652 million, was approved by Ecnec on April 23, 2002, to accommodate 14,817 families. This including federal financing of Rs 1806.652 million (63 percent of total cost), whereas Sindh government was required to arrange balance of 37 percent of total cost.
Later, on the request of provincial government, that federal government should arrange total financing, another summary was submitted. The Ecnec, in its meeting on July 27, 2004, provided another Rs 500 million, thereby increasing federal government share to Rs 2307 million (83 percent of total cost).
The project was revised due to inclusion of 4 interchanges, ramps and slip ways, and the total length of ROW was increased from 23.8 km to 38 km, which also required removal and resettlement of additional affectees with this area for construction of LEW. The revised scheme, costing Rs 4687.635 million, was approved by Ecnec on December 14, 2005. The scope of the revised scheme was to resettle 24,419 affected families.
Currently, the revised PC-1 has been submitted by the sponsors for the following reasons: (i) the number of affectees has increased from 24,419 to 30,011 households; (ii) acquisition of lease/properties at revised market prices; (iii) cost of electricity work to be paid to KESC has been revised upward; and (iv) development of 205 acres land for revised number of additional affectees ie 5592. Prime Minister Yousaf Raza Gilani has already directed the government to complete the Lyari Expressway immediately.
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