Due to delay in completion of the project, the cost in revised PC1 of Gwadar linkage road increased from Rs 7 billion to Rs 12 billion, incurring unnecessary loss of Rs 5 billion to the national exchequer. This was revealed by the officials of National Highway Authority (NHA) while briefing the National Assembly Standing Committee on Communication regarding infrastructure network at Gwadar vis-à-vis National Trade Corridor (NTC).
The committee which met with Seed Zafar Ahmad in the chair Thursday, expressed serious reservations over the delay in completion of Gwadar network. The chairman of the committee said China may have signed or going to sign an agreement with the government of Pakistan under which $10 billion would be spent on the development of Gwadar Port. NHA officials said due to security reasons the completion of Khuzadar-Ratodero section has been delayed and the cost of revised PC1 has increased from Rs 7 billion to Rs 12 billion.
The committee rejected the proposal of the Communication Ministry and NHA to include security cost in the project cost on the plea that if once this precedent was set, it would be demanded for every project being initiated in the country. The committee lashed out at the Ministry and NHA for not completing the portion of Khuzadar-Ratodero road section in Sindh where there were no security issues.
NHA officials said FC has demanded Rs 1 billion per annum as security cost to provide security on different road projects in Balochistan. Due to security reasons, local contractor has also not been able to complete the project, officials maintained. NHA officials informed the committee that timely completion of Gwadar linkages is only possible if requisite funding is made available with proper security. The government of Balochistan should ensure provision of security while FC be deployed on M-8 project, they maintained.
The committee observed that all the oil and gas exploration companies were doing their work in the province, but they arrange their security themselves. Therefore, NHA should award these contracts to FWO, if they could not carry out these projects. The committee directed to call on Chief Secretary, Home Secretary, IG Balochistan and FC Commandant in the next meeting to prepare a proper roadmap for completing these important road projects in the province.
The committee observed that NHA may take the matter of provision of security, for its employees and contractors to government of Balochistan through proper channel to timely complete Gwadar-Hoshab Road (M-8). The completion of Gwadar linkages (National Trade Corridor) will bring the economic upheaval in the lives of people.
Earlier, secretary communications briefed the committee members about the strategic importance of NTC improvement programme. The vision of the NTC improvement programme is to plan to improve logistics, develop business and achieve sustained economic growth; to upgrade existing transport infrastructure and create new assets; to create greater synergies among rural, provincial and federally supported transport infrastructure; to develop broad range of support services such as shipping, freight management, bucking, insurance and banking; and to bring about substantive and qualitative changes to industrial and services base by better economic mix. Among the programme's targets are to reduce 50 percent travel time; to decrease 50 percent transportation losses and to reduce 70 percent road fatalities, the secretary added.
The committee was also apprised that in compliance with Public Accounts Committee (PAC) directives, NHA has adjusted outstanding liabilities with FWO and letters to this effect have been written to FWO on September, 6 & 24, 2012. Describing the adjustments, Member Finance (NHA) apprised the committee that FWO has deposited Rs 791.450 million on account of Motorway revenue for July, August & September, 2012. Correspondingly, NHA has paid O&M charges of Rs 138.061 million to FWO, he added. The committee directed Member Finance to provide the copy of written agreement to National Assembly Secretariat within 10 days for the perusal/examination by committee members.