A special summary will be moved to the Prime Minister for approval of Rs 80.4 billion additional funding for Kachhi Canal Project, it is learnt. According to sources, the Central Working Development Party (CDWP) on Tuesday discussed the second revised PC-1 of Kachhi Canal Project and approved it, in principle, with the condition that (i) a special summary will be moved to Prime Minister's office seeking approval of additional funding for Kachhi Canal Project and (ii) the cost of the project will be rationalized to a reasonable limit.
The sources revealed that the Chief (Water Resources) of Ministry Planning, Development and Reforms (PD&R) presented the working paper of the project in the CDWP meeting for discussion. The Chief (Water Resources) submitted that first revised PC-I of the project was approved on 31-12-2013 at a cost of Rs 57,562 million. However the project could not be completed within the approved time and cost owing to multiple reasons including frequent variation orders/claims, limited working hours due to precarious law and order situation and improper work sequence.
He said that second revised PC-I of the project was discussed in a consultative meeting held on 01-02-2017 under the chairmanship of Secretary, PD&R which was attended by Secretary, Ministry of Water & Power and Chairman, Wapda. Therein, it was assured by Wapda that project could be completed for 55,000 acres by August 31, 2017 provided that Rs 10 billion during the current financial year is released to the project. In addition, Wapda agreed to certify that 72,000 acres of land will be brought under irrigation by December 31, 2017 for which Ministry of Planning, Development & Reforms will release Rs 13 billion in next financial year.
The sources said Adviser (Development Budget) pinpointed that it was literally impossible for Ministry of Planning, Development & Reform to arrange such a huge amount out of the meager budget for the water sector due to unavailability of fiscal space. Secretary, Ministry of Planning, Development & Reform apprised that a summary would be moved to Prime Minister's Office seeking approval of additional funding for the project.
The sources said Ahsan Iqbal noted that the unprecedented increase of cost from Rs 57.6 billion to Rs 80.4 billion lacked a cogent reason. Secretary, Ministry of Water & Power admitted that the project was ill planned without a proper feasibility and haphazard approval accorded during military regime led to a number of issues culminating in an abnormal increase in cost. However, the project should now be brought to a meaningful and logical end so that intended benefits may be accrued, it was argued.
The sources said that on a query by the Chair, Chairman Wapda assured that project will be completed by August 31, 2017 for 55,000 acres and by December 31, 2017 for 72,000 acres subject to release of requisite funds.
Chief (Water Resources) reportedly submitted that performance of consultants in this project was a question mark despite exorbitant consultancy charges of Rs 900 million. There must be a proper check on the consultants and further payment must be coupled with their performance, he said.
The sources further said the representative of Government of Punjab submitted that Kachhi Canal Project had some implications for DG Canal due to improper hill torrent management. Chief (Water Resources) responded that Kachhi Canal Project after its completion would act as a first line of defense for DG canal and hill torrent management project of Government of Punjab will further help resolve these issues.