Releasing Rs 1.050 billion for new Gwadar airport: Planning Commission told to take action against officials

Finance Minister Shaukat Tarin has directed the Planning Commission to take strict action against those officials who released Rs 1.050 billion for the New Gwadar International Airport (NGIA) without anticipatory approval.
At a recent meeting of the Executive Committee of the National Economic Council (Ecnec), Tarin was reportedly furious at the Planning Commission for not following the rules and procedures in letter and spirit. It was also observed that due diligence had not been done when the project had been developed by the stakeholders.
"Responsibility must be fixed for not obtaining anticipatory approval in this case, before releasing the funds. Those found responsible in the Planning and Development Division may be reprimanded formally," sources quoted Tarin as directing the Planning Commission.
According to the summary submitted by the Planning Commission to the Ecnec, the revised scheme envisages acquisition of around 4,300 acres of land for construction of NGIA at Gurandani, 26 km east of Gwadar City. The estimated cost of construction of the project would be approx Rs 6.800 billion, out of which Rs 1497 million is required for acquisition of Rs 4.300 acres of land as Rs 1.050 billion had been released during 2005-06 under an original approved project. Basically, this was a case of ex post facto approval.
In its own defence, the Planning Commission stated that the present Gwadar airport is located 12 km north of Gwadar town. The airport is spread over an area of around 700 acres and is capable of handling Fokker F-27 operations only. The terminal building has a capacity of handling Fokker flights only. The construction of new Gwadar International Airport at Gwadar forms an integral part of the overall objective of the transport sector in providing easy and efficient access to the southern region of Balochistan.
The new Gwadar International Airport (NGIA) will be developed as a green field airport and all major components of an airport facilities will be developed as part of this project. The new airport will augment the airport facilities in Pakistan. As a result of new airport, a network of roads and other essential infrastructure will be developed.
Sources said that the original cost of land was Rs 157,000 per acre, which was later revised to Rs to Rs 300,000 per acre. An allocation of Rs 8.938 billion has been made in the MTDF 2005-10 for Ministry of Defence under transport development, whereas Rs 750 million had been allocated in the PSDP of 2008-09.
The revised project was considered by the CDWP in its meeting on September 18, 2008 and it was decided to set up a fact-finding committee comprising the following to look into the reasons for delay in the implementation of the project and increase in cost of the land under the chairmanship of Member Implementation and Monitoring, Planning Commission: Additional Chief Secretary (Development), Government of Balochistan., Additional Secretary, Finance Division, Additional Secretary, Defence Division, Dy. DG Civil Aviation Authority, M/o Defence, Senior Member Board of Revenue, Government of Balochistan, Joint Chief Economist (Projects), Planning Commission, and Specialist PSDP, Planning Commission. The CDWP, however, agreed in principle to submit the project for decision of Ecnec on the basis of the report of the committee.
In pursuance of the CDWP decision, a meeting of the fact finding committee was held on October, 28, 2008 in Islamabad under the chairmanship of Member Implementation and Monitoring, Planning Commission. After detailed deliberation, the committee found following two reasons for delay in implementation and increase in project cost: (i) repeated demands by the Balochistan government to reduce size, readjust location and enhance price of NGIA land, were the major factors.
Deliberations by the CIC (Coordination and implementation Committee for integrated development of Gwadar under the chairmanship of Governor Balochistan) to have the Ecnec decision reviewed, which took time, was an inherent subsidiary factor; and (ii) even when the project was realigned and the additional cost of land made available, Balochistan government took 11 months to acquire land and handed over possession of the land after receipt of total funds.
The committee also observed that Balochistan government increased the price of land by 122 percent by changing the basic data for calculating the average price of land. After detailed deliberations over the issue, the Ecnec allowed the Civil Aviation Authority (CAA) to accelerate its planned efforts for the establishment of NGIA besides ex post facto approval of Rs 1.051 billion already released by the Planning Commission.