PAC informed: Neelum Jhelum Hydel Power Project's cost jumps from Rs 15 billion to Rs 404 billion

The Public Accounts Committee (PAC) was informed on Tuesday that Neelum Jhelum Hydel Power Project cost was escalated from Rs 15 billion to Rs 404 billion due to delay in execution of the project. Secretary Planning, Development and Reforms, Shoaib Siddique briefing the panel which held under the chairmanship of Syed Khurasheed Ahmad Shah, said that the project was the oldest Public Sector Development Program (PSDP) pending, approved in 1989 with a cost of Rs 15 billion but its cost was escalated to Rs 404 billion due delay in execution.
He informed the body there were a total of 573 on-going PSDP projects and Rs 534 billion were allocated for these schemes for 2017-18. He said that Rs 62 billion are allocated for special areas and Rs 119 for special programme, adding that there are 429 new schemes in PSDP 2017-18.
He said there the incumbent government had clear instructions to complete the pending projects as soon as possible, and the Planning Commission had written to all ministries to provide details of their pending projects near completion.
Shah expressed serious anger over the absence of secretary cabinet and Deputy Commissioner Rawalpindi from the meeting. The Committee issued show cause notice to secretary cabinet over his absence with directives to send copies of the show cause notice to Prime Minister, Speaker National Assembly and Chairman Senate.
Secretary Planning said that the government has allocated over Rs 1000 billion for PSDP projects during ongoing financial year, adding that delay in projects has caused rupees multibillion financial losses to national kitty. He said that Rs 151 billion has been allocated for new schemes.
Secretary Aviation Division informed the panel that work on New Gawadar Airport has not yet started as China so far didn't provide any grant which has agreed to give Rs 22 billion grant for the project.
The secretary planning and development also informed the panel that Karachi sewerage project cost has jumped to Rs 39 billion from Rs 7.9 billion, which is again due to non-release of funds by the Karachi Water Board which had released only 20 percent funds during the last ten years.
The meeting was further informed that New Islamabad Airport cost escalated from Rs 35 billion to Rs 110 billion due to delay in execution.
Chairman PAC said that cost of most of the projects escalated due to delay in their execution and non issuance of funds, adding that the cost of Nelum Jhelum project was escalated but no responsibility was fixed for the losses.
The committee directed the ministry to classify the pending projects in accordance of their aging, importance and ministries concerned.
The body observed that funds were allocated for health schemes in the budget but no releases were made to execute them timely.
Shafqat Mehmood said the ministry should classify the projects in accordance of their age in a bid to provide complete information of the pending schemes to PAC.
Syed Khursheed Shah asked the secretaries of all ministries to identify their ministries' pending projects so that PAC could issue directives to the relevant ministry to expedite work on them.
He said a strategy should be introduced for release of funds for development schemes for timely execution of projects.
The body also sought report from the Planning Commission regarding a pending project of Nolan Dam in Balochistan province within fifteen days.
Shah said the cost of the project was brought down from Rs 30 billion to Rs 19 billion but work on the project couldn't be started so far.
The committee also directed the District Administration of Rawalpindi to complete the project of a Women College on land of Pakistan Railways and make it operational as soon as possible.
Sheikh Rashid said 80 percent work of the college was completed but remaining is delayed for years despite having funds with the district administration.
Briefing the PAC about construction of 200 bed hospital for Obstetrics & Gynecology in Rawalpindi, Secretary Cabinet said the ECNEC had approved the PC-1 of the project with cost of Rs 5.316 billion, saying that the Prime Minister had directed to execute the project timely.
He said the project under the Health Ministry was approved in 2005 with the cost of 1.32 billion but the cost was escalated due to delay in execution.
Sheikh said that in 2005 he managed to allocate 200 kanal land for the construction of "400-Bed Women Hospital and Chest Diseases Centre" started in Rawalpindi, wherein most of the work has been done but after the Pakistan Muslim League (PML-N) government take charge of the Punjab government and Pakistan People Party (PPP) federal government in 2008 provision of funds for the hospital was stopped.
Cabinet Division has taken notice of the issue. Cabinet Division has prepared a revised PC-I in consultation with NESPAK for conversion of above hospital into a "400-bed hospital for Gynecology and Obstetrics".
The phase-I (200 beds of this revised PC-I) is under submission to M/o Planning, Development and Reforms for onward placement before Central Development Working Party (CDWP). The funds would be released for the said hospital subject to approval by the relevant forum, he stated.
The meeting was also attended by other members including Abdul Rashid Godil, Mehmood Khan Achakzai, Sardar Ashiq Gopang, Mushahid Hussain Sayed, Ghulam Mustafa Shah, Tavir Khan, Shafqat Mehmood, Hadayatullah, Syed Naveed Qamar, Azam Khan Sawatti, Dr. Azra Fazal and Sheikh Rashid Ahmed.