ADB has refused to finance western route: Senate body told

Asian Development Bank (ADB) has refused to finance western route of the China-Pakistan Economic Corridor (CPEC) and the government will have to make alternative arrangements for the project, revealed Chairman National Highway Authority (NHA) Shahid Ashraf Tarar. "Prime Minister Nawaz Sharif has directed to arrange finances for the western route from ADB and in case of failure, the government will make alternative arrangements," said Chairman NHA while briefing the Senate Standing Committee on Communication which met with Daud Khan Achakzai in the chair.
The Chairman added that a meeting was held with ADB Country Director in Pakistan; however they refused to finance the project. The NHA failed to satisfy the parliamentary panel with respect to progress/allocation for western route under the CPEC as the later termed it a ''big joke'' and a fraud with the nation.
"China has made it clear that they are not interested in any route, however Government of Pakistan has priorities," said Committee Chairman, adding that Rs 3 billion was earmarked in the outgoing financial year for the western route, but not a single penny was released. For the upcoming financial year (2016-17) only Rs 1.2 billion has been earmarked for western route, which reflects government''s interest in the project, said Achakzai. He further said that in a meeting held with Chinese officials, it was maintained by the later that even one division comprising 100,000 force would not ensure security to the project unless the locals are not satisfied. The Chinese side further maintained they would think about western route in future, Achakzai added.
Senator Muhammad Usman Khan Kakar termed it a ''big joke'', saying that Planning Minister Ahsan Iqbal and government associates are confusing the nation on the western part of the project. We would go to any extent to get our rights, he added. Senator Kamil Ali Agha seconded him while expressing serious reservations over progress on the western route, saying it may cause threats to the integrity of federation.
Replying to committee''s members'' questions, Chairman NHA said that Rs 20 billion was earmarked for land acquisition under the western part in 2015-16, but did not reveal how much was released so far. Tarar said the ADB and the NESPAK are carrying out two separate feasibility studies of the western part which is likely to be completed by end July. NHA''s initial study has been prepared with an indicative price of Rs 99 billion.
He further said that $46 billion is for the early harvest projects while more investment will come under the short-term, medium-term and long-term. He said that China has initially selected two projects named Thakot-Havlian and Multan-Sukkur worth $1.3 billion and $2.9 billion, respectively. The committee directed Finance Ministry and Planning, Development and Reforms and NHA to hold a joint meeting and prepare answers to the Committee''s questions and brief it on the progress about western route in the next meeting.
The committee also discussed the non-payment issue to small contractors by the NHA due to a tussle between the NHA and the FWO. Senator Lieutenant General Salahuddin Tirmizi (retd) informed the committee that some small contractors are not getting their due payments. One contractor, according to him, has died while making efforts to get his dues.
He said that the FWO is of the view that it has dues towards the NHA and it will pay the amount to contractors only after it is paid by NHA. The Chairman NHA informed the committee that this issue purely relates to FWO and NHA has no concern with non-payment to their sub-contractors. He said the small contractors were hired as sub-contractors by FWO. He admitted that the FWO owed some amount to NHA and vice versa. However, he stated that the FWO is not under their control but will raise the issue again. The committee also decided to call on FWO in next meeting.