Projects over Rs one billion audit: Planning Commission asked to hire reputed firms

The Executive Committee of National Economic Council (Ecnec) has directed the Planning Commission to hire reputed firms for audit of all projects costing over one billion rupees to ensure transparency and timely execution, Business Recorder has learnt.
According to sources, it observed that the State Bank of Pakistan (SBP) maintains a list of reputed auditors, and the Planning and Development Division should issue necessary instructions to all concerned, in consultation with SBP, for development projects audit.
"All projects costing over one billion rupees must have audit from firms of repute, Ecnec directed, adding that informal audit will be conducted after every six months and formal every year to ensure transparency, timely execution of the projects and financial propriety.
The Ecnec gave these directions while considering a summary in its meeting on January 21, submitted by the Planning Commission/ Planning and Development Division on 'Quetta Water Supply and Environmental Improvement Project (QWSIP) Revised', which was approved at a revised frozen cost of Rs 17,092.60 million without foreign exchange component (FEC).
The apex body observed that any further increase in this cost of project will be borne by the government of Balochistan. It directed that before execution of the project report of Chief Minister's Inspection Team shall be finalised to ensure transparency, and recommendations made therein shall be fully implemented.
The project was considered by the CDWP on September 17, 2009 and noted that cost of project had risen from 7.3 to 26 billion rupees. It was, however, recommended for approval of Ecnec subject to rationalisation of scope and cost in consultation with Member (Infrastructure) and Member (I&M), Planning Commission.
The Ecnec was informed that, in compliance of CDWP decision, a meeting of the Committee was held on January 13, 2010 which took serious view of increased cost of the scheme from Rs 7.3 billion to Rs 26 billion, as some of this was due to inaccurate/ depressed/escalation. It was also partly attributed to change in the scope of work. The committee further directed the Government of Balochistan to urgently finalise enquiry report on the issue and take action against the delinquent officials.
The enquiry is being conducted by Chief Minister's Inspection Team. After detailed deliberations, the scheme was recommended to the Ecnec for approval at a revised/rationalised cost of Rs 17,092.60 million. The cost exceeding the amount would be met by the provincial Government.
The objective of the project is to develop and utilise all possible water resources, both surface and underground, in and around Quetta to meet the water requirement. The components of the project have been divided into two packages. Package 'A' is (i) rehabilitation of water supply pipelines (ii) replacement of shallow tube wells (iii) digging new tube wells in hard rock (iv) laying of new condition and distribution water pipe lines (v) construction of ground and elevated water tanks (vi) laying of sewerage system (vii) construction of waste water treatment plants (viii) stork water drainage channels (nullahs( (ix) enhancement of ground water recharge measures (x) A project Management Unit (PMU). Package 'B' is (i) construction of Mangi Dam (ii) acquisition of land for dam (iii) water conduction main line (60 km).