169 projects delayed: MoF disbursed only Rs23bn of Rs40bn budget, Senate panel told

ISLAMABAD: The Senate Standing Committee on Housing and Works was informed that the delays in completing 169 projects were mainly due to the Ministry of Finance disbursing only Rs23 billion of the Rs40 billion budget that was allocated.

The committee meeting was chaired by Senator Nasir Mahmood in which various issues, including the implementation of recommendations from the committee's meeting on July 12, 2024, were discussed.

The committee discussed the details of completed and pending Public Sector Development Program (PSDP) projects, the reasons for the incomplete G-13 flats project, the use of budget/funds for the renovation of Qasr-e-Naz in Karachi, and actions taken against the previous administration, including legal proceedings and their current status. The slow progress of the Kuchlak project in Quetta and actions against the project's designer were also examined.

The Director General of Pakistan Public Works Department (PWD) briefed the committee on the PSDP projects, stating that out of the 202 projects for the fiscal year 2023-24, 33 have been completed and work is ongoing on 169. He mentioned that most projects could be completed on time if funding issues were resolved. The committee requested details of the incomplete projects, additional costs, and completion timelines for the next meeting.

Additional Secretary of the Ministry of Housing and Works Alamgir Khan explained that various factors contribute to project delays, noting that only Rs23 billion of the allocated Rs40 billion budget were released by the Ministry of Finance.

Senator Saifullah Niazi highlighted that contractor-related issues have been causing project delays for the past four years. Senator Saifullah Abro questioned why PWD is being shut down and emphasised that it should not be closed. The committee decided to hold a briefing on PWD in the next meeting. Senator Khalida Ateeb expressed concerns over the lack of maintenance and management of Qasr-e-Naz, an architecturally significant building. The Ministry of Housing and Works stated that a PC-1 has been prepared for the Qasr-e-Naz project, but funding approval is pending. The committee emphasised that timely completion of projects prevents additional burden on the national treasury and ensures timely project delivery.

The committee resolved to call the Ministry of Finance and Planning Division in the next meeting to discuss the release of funds. Senator Bilal Ahmed Khan suggested that no new projects should be assigned to PWD to avoid future issues, as the cabinet has approved PWD's closure. A committee has been formed to oversee ongoing projects. The committee requested details on the closure of PWD. Regarding the Murree project, the committee was informed that the land comprises 36.8 kanals, with PWD holding 6.8 kanals, the district administration 18 kanals, and a former PWD watchman occupying 12 kanals. A court ruling favoured PWD, but further legal challenges have arisen.

The committee decided to write a letter to the Chief Secretary of Punjab regarding the project. The committee was informed that a small cemetery and an inactive old Brazilian embassy building are located on the project site. Chairman Committee inquired about the construction of a jail in Islamabad. The DG PWD clarified that PWD is responsible for the jail's construction, which has faced funding issues for the past five years. The Ministry of Interior had ordered the project's completion within 100 days, and work resumed after receiving funds in June.

The Director General PHA briefed the committee on the Kashmir Avenue and Lifestyle Residencia projects in G-13. The Kashmir Avenue project started in 2020 but was halted due to Covid-19. The project includes 1,467 flats, and 16 per cent of the work was completed by 2021. A new PC-1 was prepared in May 2024, and the project's cost has increased from 15 billion rupees to 33.5 billion rupees. The project comprises three blocks, with commercial use planned for some spaces. The cost of one flat has risen from 10 million to 20 million rupees. An open tendering process will be used, and the project will follow a government-to-government model. Senator Saifullah Abro raised concerns about the misuse of the government-to-government act and the selection of an incompetent company. The committee was informed that eight towers of the Lifestyle Residencia have been completed, and 19 billion rupees are needed for finishing work. The project includes 2,886 apartments, and the work began in 2016. The original contractor passed away, and two new advertisements have been issued for a replacement contractor. The project's total assets are valued at 32 billion rupees, with 2.6 billion rupees owed by buyers but only 90 million rupees received. The committee decided to review this project with a dedicated agenda item in the next meeting. The Ministry of Housing was also requested to provide details of those working on deputation.

The committee was briefed on the Kuchlak project in Quetta by the MD PHA. The project, designed in 2019, covers 86 acres and includes 714 houses and 637 apartments for 1,350 families. The project faced issues due to its location on a fault line and the 2022 floods. The contractor had taken legal action against the agency regarding infrastructure issues. The project was initially awarded at 645 million rupees but is now estimated at 960 million rupees, with 433 workers currently involved. There were concerns about the project's design, especially regarding a drainage canal passing through the site.

Senator Bilal Ahmed expressed concerns about the canal's location within the project, questioning the design. The Chairman Committee requested a complete video and design of the project for the next meeting, including the consultant's presence. The committee was informed that politically connected individuals had influenced the project's outcomes, resulting in legal setbacks.

The Chairman Committee emphasised the ministry's importance in meeting housing needs and stressed adopting strategies to complete projects on time without additional financial burdens on the national treasury.

The meeting was attended by Chairman Committee Senator Nasir Mahmood, Senator Bilal Ahmed Khan, Senator Muhammad Aslam Abro, Senator Khalida Ateeb, Senator Saifullah Sarwar Khan Niazi, Senator Hassana Bano, Senator Saifullah Abro, Senator Hidayatullah Khan, Secretary Housing and Works Shehzad Khan Bangash, Additional Secretary Housing Alamgir Ahmed Khan, and other senior officials.

Copyright Business Recorder, 2024