ADB accused of delaying project: construction cost of M-4 jumps by over Rs 30 billion

National Highway Authority (NHA) has revised PC-1 upward for construction of Faisalabad-Khanewal Motorway (M-4) from Rs 28.56 billion to Rs 60.82 billion, blaming the stringent land acquisition policies of Asian Development Bank (ADB) for delay in project implementation.
The official sources revealed that the National Highway Executive Board recommended revised PC-1 for construction of Faisalabad-Khanewal Motorway (M-4) (184km) at the cost of Rs 60.823 million for approval by the Central Development Working Party (CDWP)/Executive Committee of the National Economic Council (ECNEC).
The project will be financed by the government of Pakistan and the ADB in co-financing with the DFID/AIIB. Motorway M-4 (Faisalabad-Khanewal) 184km was planned as an important link of national trade corridor to provide a high speed between southern sea ports with north of the country as well as to facilitate inter-regional trade.
The original PC-1 of 4-lane M-4 amounting to Rs 28.564 billion was approved by the ECNEC on February 06, 2008. Justifying the delay in the project implementation, the NHA maintained that as per original PC-1, all sections of M-4 were planned to commence simultaneously and complete in 3 years (2008-2011) but they could not be started simultaneously. The financing arrangements could not be made timely for all packages. Loan for only Section-1 was signed with the ADB in December 2008, whereas, loans for Sec-II & III were signed in October 2015 and June 2016 respectively.
Stringent land acquisition policies of the ADB caused further delay in implementation of Package-1 and other Packages. The ADB stopped work at Package-1 after mobilization of contractor citing unsatisfactory implementation of LARP. Thereafter, the NHA mobilized contractors at Package-II & III after NOC by the ADB which delayed the project.
Justifying the revised PC-1, the NHA said that number of crossing structures was given much less in original PC-1, while more were required at the site. Such increase in structures resulted increase in profile as well. All the structures have been extended to 6-lane in revised PC-1, while they were planned as 4-lane in original PC-1. The shoulders have been extended from 3m to 3.65m, so that full lane width is available in case of extension.
All interchanges have been made 6-lane for smooth operation during future extension of existing 4-lane Motorway to 6-lane facility, besides addition of 4km long 6-lane wide landing strip for PAF. Major changes like revised x-section having 4-lane Motorway with 6-lane structures, conversion of flyovers into underpasses, requirement of additional structures and time/cost overruns necessitated this revised PC-1 amounting to Rs 60.823 billion which is based on contract costs.