Slow release of funds: National Assembly body decides to summon MoF officials

National Assembly Standing Committee on Water and Power and Ministry of Water and Power on Thursday took on Ministry of Finance and Planning Division for slow release of allocated funds for water sector projects. Presided over by Arshad Khan Leghari, the committee decided to summon the officials of Finance Ministry to the next meeting to quiz reasons for the slow release of allocated funds for 2015-16.
Additional Secretary Ministry of Water and Power, Omar Rasool, informed the committee that the Ministry had sought Rs 120 billion for hydropower projects in federal PSDP 2015-16 but the Finance Ministry allocated only Rs 30 billion. General Manager Finance, Wapda Iftikhar Ahmad, clarified that out of Rs 30 billion, Rs 15 billion was allocated for the water sector but the Finance Ministry has so far released Rs 7.5 billion only despite the fact that the third quarter of the current fiscal year is at an end. Total releases are only 40 per cent.
The Standing committee was further informed that the Ministry of Water and Power has received 74 development projects from Wapda and provinces for 2016-17 of which Wapda has submitted 26 projects, Balochistan 17, KPK-10, Sindh 10, Punjab 8 and a couple of others. The cost of these projects has been calculated at Rs 161 billion. The cost of water sector projects has been calculated at Rs 85.930 billion - for water storage/irrigation dams Rs 44.194 billion, conveyance canals Rs 34.2 billion, research investigation/monitoring Rs 260 million and engineering studies Rs 1.076 billion.
For PSDP, 2016-17, Wapda made the demand as per the following priorities: (i) projects to complete/ wind up if proposed PSDP is allocated/ released for 7 projects needing provision of Rs 21.8 billion; (ii) projects which are at an advance stage of execution (4 projects with the proposed provision of Rs 41.6 billion); (iii) projects at launching pad/ award of contract ( 4 projects with demand of Rs 11.860 billion); and (iv) most essential starter (3 projects requiring provision of Rs 8.936 billion) . Omar Rasool said that allocation for PSDP in 2016-17 will also not be encouraging. The committee maintained that due to a delay in completion of the projects cost increased which resulted in a huge loss to the exchequer.
The committee endorsed all the budgetary proposals of departments/DISCOs and directed the completion of their on-going projects on a top priority basis. General Manager Wapda also informed the committee that physical work on phase-I of Rainee Canal is completed. However, when Chairman of the committee revealed that the people of the area are stealing water from the canal, GM Wapda confirmed that such incidents are taking place. He further stated that the water being released in Rainee canal is only for defence, adding that Sindh has not taken over the project so far. The representative of Sindh government revealed that a summary has been put up for the Chief Minister for this purpose and as the summary is approved, Rainee canal will be taken over for phase-II.
Wapda representative further informed the committee that 87 per cent physical work on Kachhi canal (phase-I) is completed. He acknowledged mismanagement in the projects, adding that a number of agencies including Prime Minister Inspection Commission, have visited the project to investigate the wrongdoings.
However, when the General Manager Wapda said that 47 per cent physical work at Nai Gaj Dam is completed, Minister of State for Water and Power, Abid Sher Ali burst out with "don't tell a lie" and added that he has personally visited the project thrice and there is no evidence of any physical work. Other members of the Standing Committee sided with Abid Sher Ali and demanded that the projects should be physically visited to verify the claims of Wapda.
GM Wapda, seeing the mood of committee members, took the stance that he is just GM Finance and merely repeated the update he got from the field. He further stated that financial close of Daso hydropower project is complete. Additional Secretary informed the committee that the government is also working on improvement in transmission system along with generation and maintained that the government is making a serious endeavour to complete the power projects by the end of 2017 and early 2018 after which the country will be able to produce surplus electricity.
"Two years are very critical. We have to improve the distribution and transmission system. We have breathing space of two years to supply electricity at affordable price," he continued.
Abid Sher Ali and Rao Ajmal exchanged hot words about non-payment of bills by the agriculture consumers of Okara and Kasur. Rao Ajmal accused Kissan Ithihad of not paying bills and added that the general public was being punished as a result. MNAs, Muhammad Junaid Anwar Chaudhry, Malik Ihtebar Khan, Lieutenant Colonel (Retd.) Ghulam Rasul Sahi, Pir Muhammad Aslam Bodla, Rao Muhammad Ajmal Khan, Nawab Muhammad Yousuf Talpur, Malik Ghulam Rabbani Khar, Rai Hassan Nawaz, Maulana Muhammad Gohar Shah, Syed Kazim Ali Shah, Sahibzada Muhammad Yaqub, attended the meeting, besides officials of the Ministry.