Chashma Right Bank Canal (Lift-Cum-Gravity) Project: Ministry resubmits PC-1 with 141 percent cost hike

The Ministry of Water and Power, which had willingly submitted a revised PC-1 of the ''Chashma Right Bank Canal (Lift-Cum-Gravity) Project'' to Planning Commission after a lapse of many months, has increased the cost to Rs 61 billion, which is 141 percent higher than original estimate.
Sources told Business Recorder that the Ministry of Water and Power had submitted a revised PC-1, costing Rs 39,123.649 million for processing through Central Development Working Party (CDWP)/Executive Committee of National Economic Council (Ecnec) after a lapse of 26 months. The revised PC-1 was considered in the CDWP meeting held on October 10, 2008, which was returned on the request of the Ministry of Water and Power.
"Now again after a lapse of 14 months, the Ministry submitted an updated PC-1 to the Planning Commission on January 1, 2010 with the increased cost of Rs 61 billion, which is 141 percent higher than original PC-1," sources said, adding that the project is under examination in Planning and Development Division and would be submitted to the CDWP in its upcoming meeting, expected to be held during the current month.
Original project was considered by the CDWP in its meeting on July 7, 2005 which directed the Ministry of Water and Power to re-examine it. The issues relating to preparation of feasibility, enormous size of pumps to carry 2,533 cusecs of water to a height of 64 feet, large O&M requirements of the project with ever-increasing electricity tariff, approval of environmental impact assessment (EIA) study and resettlement action plan by the concerned environmental agency were raised in the meeting.
According to sources, after detailed discussion, it was decided that the engineering of the project required to be re-viewed. Sources said that the study group of Pakistan Engineering Council (PEC) discussed the engineering part of the project in a series of meetings held on 26th January, 21st March, 4th April and 18th April 2006 in PEC.
Wapda and government of NWFP made detailed presentations before the study group. After a series of meetings PEC submitted technical report to the Ministry of Water and Power and Wapda with the recommendations that (i) technical evaluation of CRBC should be carried out expeditiously, being an immediate need of NWFP; (ii) futuristic needs of the project be given due consideration so as to make it sustainable; (iii) future gravity option be considered; and (iv) 2nd and 3rd lifts be evaluated for the command areas.
Ecnec, which met on January 21, was informed that in pursuance of PEC proposals, the Ministry of Water and Power hsd submitted revised PC-1 costing Rs 39,123.649 million for processing through CDWP/Ecnec after a lapse of 26 months. Now again after a lapse of 14 months, the Ministry had submitted updated PC-1 with an enhanced cost of Rs 61.00 billion to be considered by the CDWP in its meeting, likely to be scheduled in current month.