Foreign-funded projects: Design changes, consultant delays stall work: Senate panel

ISLAMABAD: The Senate Standing Committee on Economic Affairs expressed serious concerns over the delay in the implementation of foreign-funded projects, while observing that projects were delayed on account of change in design in later stages as well as delay in hiring consultants, which cost millions of dollars in terms of paying interest.

The committee was also informed that National Highways Authority (NHA) has set to increase toll rate by 100 percent.

The committee meeting chaired by Senator Saifullah Abro, convened to discuss ongoing and completed projects of communications sector, particularly national highways, motorways and road infrastructure under multilateral, bilateral and UN agencies along with the details of tendering process and interest paid by federal government on these projects.

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The officials informed that a total of 33 projects have been completed as of July 2024, of which, 15 projects were funded by the Asian Development Bank, five projects by World Bank, seven projects by China, one project funded by Saudi Fund for Development, one projects by USAID, three projects by Japan, one project was funded by Kuwait Fund.

The total commitments for these projects were $10 billion. However, 10 projects are ongoing with a commitment of $1.547 billion, and from these four projects are each funded by the Asian Development Bank (ADB) and Korea and one project each by Saudi Fund for Development and World Bank.

While discussing communications sector (ongoing projects) funded by Korea, Senator Saifullah Abro raised concerns over the delay in completion of the projects. It is unfortunate to witness that projects have delayed due to change in design in later stages or due to delay in hiring the consultants, he added.

The chairman committee mentioned that, in foreign-aided projects, interest has been charged since the signing of the agreement and any delay in its completion cost around millions of dollars to the nation.

It has been revealed that the consultants and contractors for the Korean Funded Projects have been hired from the list provided by Korean Exim Bank.

Senator Kamran Murtaza stated that local contractors and consultants should be given a fair chance to compete in the bidding process and any restriction on local constructors and consultants infringes their constitutional rights (Article 18 and 25 of the 1973, Constitution of Pakistan).

Abro inquired about the rate charged by Korean contractors and consultant and their comparison with the local contractors and consultants. The committee recommended the NHA to provide details of rates charged by Korean local contractors and consultants and also EAD to investigate about it.

Murtaza also sought details related to total amount and percentage of communications sector (completed projects) of Balochistan. The committee recommended EAD and its concerned department to provide the details related to loans funded by Korea along with names of Korean companies to the committee.

The committee recommended the NHA to provide one-page information of all communications sector (ongoing projects) to the committee. The committee also recommended NHA to provide copy of agreements to all schemes funded by Korea to the committee.

Senator Haji Hidayatullah highlighted the increase in motorway toll rates. The officials of the NHA stated that toll rate has been increased every three years, and after 2018, there has not been made any increase in toll rates.

The NHA was set to increase the toll rate by 100 per cent, but the increase will be made on a quarterly basis. The collection of the toll was utilised for the maintenance of NHA road network as the NHA did not receive any grant from the government for road maintenance. Murtaza remarked that toll rate should be increased at once instead of increasing it on a quarterly basis.

Furthermore, the committee was briefed on ongoing and completed projects by agriculture, works and services and school education departments of Sindh under multilateral, bilateral partners and UN agencies.

Officials apprised that a total of 16 projects have been completed by the government of Sindh, of which, six projects were funded by Asian Development Bank, eight by World Bank, one project each by the European Union and USA (INL-Pakistan).

The total commitment for these projects was $2.228 billion. After the detailed deliberations, the committee recommended the provincial departments, government of Sindh to provide the tendering details of all the ongoing projects and concerned project directors to attend the next committee meeting.

The committee recommended EAD to write letter to Sindh chief secretary to ensure the presence of concerned officers in the next committee meeting.

Regarding the complaints received during the tendering process of 765kV Dasu- Islamabad Transmission Line Project and ADB 401B-2022 LoT II A (ACSR Bunting Conductor), the committee, unanimously, decided and recommend EAD and its concerned department to provide the details concerning complaints received and action taken by the department against involved officials to the committee.

Copyright Business Recorder, 2025