Western route, Sukkur-H'abad Motorway: NHA fails to make any major progress

ISLAMABAD: The National Highway Authority (NHA) has failed to achieve any major progress on western route and Sukkur-Hyderabad Motorway, which are critical components of the China-Pakistan Economic Corridor (CPEC), connecting Gwadar port with other parts of the country, during the first two years of government.

This was confirmed through NHA mobile application (NHA-IS), which provides up to date information about work on CPEC and other road projects.

Hakla-D I Khan Motorway (CPEC) is 285 kilometers long and part of western route which was divided into five packages at an estimated cost of Rs 145.5 billion including Rs 20 billion for land acquisition and utilities. The project was divided into five smaller sections so that work could be completed according to the given time frame, i.e. by end 2019.

According to NHA-IS, construction of Package-III (Daud Khel-Tarap) began in 2016 at an estimated cost Rs 20.618 billion and was scheduled for completion by May 2019. However, 58 percent physical and 53 percent financial progress has been achieved so far.

Construction of Package-II-C (Rehmani Khel-Kot Balian) was initiated in 2017 at an estimated cost of Rs 7.137 billion and was scheduled to be completed by December 2019. About 42 percent physical and 39 percent financial progress has been achieved so far.

Construction of Hakla on M-I to Yarik D I Khan Motorway (CPEC) (Pindi Gheb to Hakla) Package-V was started in 2017 at an estimated cost of Rs 16.8 billion and was scheduled to be completed by January, 2019, but so far 46 percent physical and 43 percent financial progress has been achieved.

Construction of Hakla on M-I to Yarik D I Khan Motorway (CPEC) (Tarap - Pindigheb) Package-IV was started in 2016 with estimated cost of Rs 21.38 billion and was scheduled to be completed by September 30, 2019, but so far 51 percent physical and 41 percent financial progress has been achieved.

Construction of Hakla on M-I to Yarik D I Khan Motorway (CPEC) (Rehmani Khel to Kot Belian) Package-IID was started in 2017 with estimated cost of Rs 4.43 billion and was scheduled to be completed by September, 2019, but so far 99.8 percent physical and 90 percent financial progress has been achieved.

For the Sukkur-Hyderabad Motorway project an advertisement was released in the national and international print media on October 10, 2016 inviting Expression of Interest (EoI) regarding pre-qualification of firms. The NHA bid opening/evaluation committee opened technical proposals on February 14, 2017. Subsequent to finalization of technical evaluation, financial proposals of all the three bidders were opened on March 7, 2017 and scheduled completion of the project in three years at a cost of Rs 175 billion.

However, after assuming power the incumbent government shelved Hyderabad-Sukkur Motorway (M-6) project. The Executive Committee of the National Economic Council (Ecnec) recently approved the project at a cost of Rs165.679 billion, and the paper work of Sukkur-Hyderabad motorway is being completed.

Federal Minister for Communications and Postal Services, Murad Saeed stated on Monday that Sukkur-Hyderabad Motorway had been tendered internationally. The Hyderabad-Sukkur Motorway project envisages construction of 306-km-long, 6-lane wide, access-controlled motorway.

Officials' sources revealed that road projects under the CPEC framework -particularly the western route-are behind the completion schedule deadline due to short releases of funds, which may escalate its cost.

According to the two years performance report (Aug 2018-2020) of the incumbent government revenue of NHA increased from Rs. 33.011 billion in 2018-19 to Rs. 50.068 billion in the year 2019-20. Total revenue earned in 2 years of present government was Rs. 83.079 billion.

However a senior official revealed that auction of 219 vehicles and increasing toll tax contributed to increase in revenue. NHA auctioned 219 vehicles, which generated over Rs 213 million. This was confirmed by NHA spokesperson Mushtaq Ahmad to Business Recorder that increases in toll tax and auction of vehicles contributed to increase in revenue.

Sources revealed that cost overruns in mega projects of NHA have become routine due to inconsistent policies, shortage of funds, security reasons and willful incompetence on the part of contractors.

Copyright Business Recorder, 2020