Non-utilisation of Rs 140 billion funds: PSDP releases to ministries put on hold

The Ministry of Planning and Development put on hold the Public-Sector Development Programme (PSDP) releases to the ministries, which have failed in utilisation of less than 20 percent funds released in the first two quarters of the current financial year.

The unutilized amount from the funds currently stands at Rs140 billion. This was revealed by senior officials of the ministry, while briefing the Senate Standing Committee on Planning, Development and Special Initiatives, which met with Agha Shahzaib Durrani in the chair, Wednesday.

Officials of the Planning Ministry said that some departments such as the National Highways Authority (NHA) create hype and get projects approved in the PSDP, but later do not utilise the funds.

Nine ministries have so far requested for re-appropriation of funds. The committee was further informed that the federal government would not include even a single unapproved project in the PSDP 2020-2021. In most cases and especially in the communication sector, the procurement of land for the projects remained a complex issue and such issues take years to settle, so the ministry had decided that unless the project is not approved, and land not acquired where required, no funds would be allocated for it in the PSDP.

The chairman of the committee however, pointed out that the government had included 42 unapproved projects in the PSDP 2019-2020 despite its decision for not taking unapproved projects.

The committee was informed that the number was more than 42 but now onwards unapproved projects would not be included in the PSDP. Briefing the meeting about the current status of funds released and utilisation under the PSDP 2019-2020, the Planning Ministry informed the committee that total size of the PSDP during current fiscal year was Rs701 billion out of which Rs424 billion were to be authorized by the Planning Ministry, while Rs149 billion were to be managed and released by the Finance Division whereas the remaining Rs128 billion were part of foreign aid component, which were directly disbursed to the project authorities.

During the first two quarters of the current fiscal year, an amount of Rs320.5 billion including foreign aid of Rs85.2 billion had been authorized for release/disbursed. Against this amount Rs167.1 billion as per SAP system have been utilized by ministries/divisions/agencies.

The meeting was further informed that the Planning Ministry was conducting monthly and quarterly review of the PSDP regularly to stress upon the ministries, divisions and agencies for speeding up project implementation pace and further field monitoring of mega projects was also being carried out.

Senator Hidayatullah pointed out that for the development of merged districts of Khyber-Pakhtunkhwa (erstwhile Fata), the government had allocated Rs24 billion in the PSDP 2019-2020 however only Rs4.6 billion were authorised for disbursement so far.

He said that the erstwhile Fata should be specially focused as it was badly affected during the period when terrorism was on its peak. The ministry official informed that normally maximum utilization was done in third and fourth quarters of the year so full utilization of funds would be ensured before the year end.

The committee was informed that the Pakistan Engineering Council (PEC) would give an expert group of 10 engineers who would be deployed at different projects to evaluate and technically assess all projects to avoid any delays and cost overrun by devising a comprehensive mechanism in this regard.

The meeting also discussed the agenda item regarding RBOD-II mega drainage project (extension RBOD from Sehwan to Sea) and status of M-8 Ratodero to Khuzdar Motorway project.

Discussing the status of the M-8 Ratodero to Khuzdar Project, the committee was informed that all bridges were operational except for a 47km patch. This part entails a hill that needs to be cut. Another issue that has been quoted for delay of the project is poor performance of the contractor, due to which they have been removed.

A revised PC1 has been submitted to the Ecnec for approval. The committee stressed the need for a team to visit the part of the route where work is pending and conduct an inquiry so that work stalled over a period of 21 years may be completed.

The committee chairperson gave directions for the NHA to resolve issues with the Ecnec so that the project might be completed at the earliest. Discussing construction/upgradation of Shabozai (N-70) to Tounsa (N-55) Road, the committee was informed that the government of Balochistan requested the prime minister (Government of Pakistan) in 2009-2010 for construction of the said project.

The BDA official's along with local representatives visited the site and submitted the PC-1 amounting to Rs6,023.89 million.

The PC1 was approved in October 2011.

Later certain amendments were made due to proposed scope of work. The amendments would give access to less developed areas of Balochistan and improve connectivity to the CPEC routes. The committee gave directions to the Government of Balochistan to submit a revised PC-1 to the Ministry of Planning, Development and Special Initiatives at the earliest.

Discussing the RBOD-II Mega Drainage Project (Extension RBOD from Sehwan to sea), the committee was informed that 90 percent of the work had been completed.

However, due to differences between stakeholders, work has been delayed.

Senator Rukhsana Zuberi, while reviewing the project asserted that capacity building was imperative to ensure that projects were monitored from inception.

She said that a pool of consultants must be made available to work side by side with the contractors.

This would save cost and time overruns, Zuberi said.

After hearing briefings of these projects, the committee directed the authorities concerned to fast track work to ensure early completion of the projects. The meeting was also attended by Senator Dr Asad Ashraf.