Cost overruns in mega projects of National Highway Authority (NHA) have become routine due to inconsistent policies, shortage of funds, security reasons, corruption and willful incompetence on the part of contractors, it is learnt. Official sources revealed to Business Recorder that some of the vital road projects' cost escalated by over 200 percent and are still in implementation process despite passage of over 10 years.
According to officials some projects are being delayed due to shortage of funds, flawed designing, relocation of utilities and land acquisition, resulting in cost escalation. But in some cases contracts are awarded to contractors on the basis of political patronage who then proceed to delay implementation to raise construction charges manifold, they added.
The cost of Lyari Expressway project has increased by 154 percent with the original cost of Rs 5.9 billion that was approved by the Executive Committee of the National Economic Council (Ecnec) to Rs 12.99 billion. When work started on the Lyari Expressway in May 2002, the NHA had scheduled completion in 30 months (ie by November 2004) but the project is still being implemented - delays attributed to encroachment, litigation and funds issues.
NHA awarded Karachi Hyderabad Motorway (M-9) project at a cost of Rs 24.93 billion to the Malaysian construction company, Bina Puri Holdings on Built Operate Transfer (BOT) basis in 2012, however later the agreement was cancelled with both parties accusing each other of not fulfilling contractual commitments. The project was later awarded to Frontier Works Organisation. The project commenced on September 17, 2015 and is scheduled for completion by October 2017 at a revised cost of Rs 36 billion.
Construction of the Lowari Tunnel began in September 1975 as a railway tunnel, but work was stopped in 1977 after the change of government. Construction resumed in September, 2005 initially with a scheduled completion in three years, but that time was extended after it was decided to convert it to a road tunnel. In 2015, the government approved additional funds for a revised PC-I of the Lowari Tunnel, and indicated that it would be completed by October 2017 at an estimated cost of Rs 27 billion against the initial cost of Rs 7 billion.
NHA revised the PC-1 of Hassanabdal-Havelian Expressway (E-35) upward from Rs 30.97 billion to Rs 34.37 billion after converting it to six lanes and making some other changes in its design.
The cost of Jalkhad-Chilas section escalated to Rs 7.8 billion against the initial cost of Rs 2.3 billion due to inordinate delay of over six years in project completion. The Jalkhad-Chilas section (68km) is the last section of Mansehra-Naran-Jalkha-Chilas Road (N-15). It is an alternate route to Gilgit-Baltistan and Jalkhad-Chilas section was awarded to FWO in November, 2004.
Initial project completion time was four years; however work on the project was suspended in September 2010. The project was resumed in September 2012 at a revised project cost of Rs 3,752 million which was later further revised upward to Rs 7.808 billion. The project is now complete and final paper work is in progress.
The 193km Gwadar-Hoshab section of Rattodero-Gwadar Motorway (M-8) was completed in February 2016 against the initial deadline of 2006 at a cost of Rs 13 billion, revised several times.
The repeated changes in design and consistent delay in completing Takht Bhai over-head bridge has escalated the cost of the project to Rs 836.47 million against the original cost of Rs 582.12 million. Original time of the completion was 18 months which was later revised and extended to 42.8 months but the project has yet to see the light of day.
The Nishtar Gath Bridge, one of the major infrastructure projects, costing Rs 5.49 billion is expected to be completed this year. This proposed bridge - connecting Balochistan and Punjab via the GT Road (N-5) and the Indus Highway (N-55) on both sides of River Indus was announced in 1988 by former Prime Minister Benazir Bhutto but was delayed for reasons mentioned above.