ISLAMABAD: The Central Development Working Party (CDWP) has cleared five development projects with a combined estimated cost of more than Rs60 billion, including a major water supply scheme aimed at transporting water from Mirani Dam to Gwadar through a 125-kilometre pipeline.
The meeting, chaired by Planning Minister Ahsan Iqbal, approved three projects costing a combined Rs11.7bn and recommended two projects worth Rs48.545bn for approval by the Executive Committee of the National Economic Council (Ecnec).
Among the projects referred to Ecnec was the Rs19.55bn Karachi Neighbourhood Improvement Project (KNIP), which is already nearing completion and is being financed through a World Bank loan.
Under the financial rules approved by the National Economic Council, the CDWP can approve development projects costing up to Rs7.5bn. Projects exceeding that limit are forwarded to Ecnec for approval after technical scrutiny by the Planning Commission.
Following a technical assessment, the CDWP recommended reducing the estimated cost of the “Construction of Water Supply Scheme to Gwadar Town from Mirani Dam under Balochistan Socio-Economic Development Projects Phase-III” by around 20 per cent to Rs23.82bn from the Rs29bn proposed by the Balochistan government.
The proposed reduction is expected to save around Rs5.235bn without altering the project’s design or scope.
The Planning Commission reduced the cost mainly by cutting contractor overheads under non-scheduled items. These items account for around Rs23.4bn, or 86.7 per cent, of the project’s base cost.
However, the Planning Commission recommended that Ecnec approve the project only after outstanding technical issues are resolved. These include verification of water demand estimates, hydrological assessments, confirmation of the water source, procurement arrangements, land acquisition, a financially sustainable operation and maintenance mechanism and a realistic implementation schedule.
During the meeting, Ahsan Iqbal directed the Balochistan government to conduct a study on wastewater treatment in Gwadar, stressing that the city should not face the same sewage-related problems as Karachi.
The minister also permitted the project to proceed to the bidding stage to avoid delays, while directing that no contract should be awarded until Ecnec grants formal approval.
The CDWP also recommended the revised Rs19.55bn Karachi Neighbourhood Improvement Project for Ecnec approval. The project is to be financed through foreign assistance, including an $85 million World Bank loan equivalent to around Rs16.7bn and Rs2.8bn from the Sindh government.
While reviewing the Karachi project, the CDWP formed a committee comprising the Planning Commission members for population and infrastructure and a representative of the Economic Affairs Division. The committee will develop a framework to improve monitoring, transparency and accountability of foreign-funded development projects.
The CDWP separately approved three projects with a combined estimated cost of Rs11.714bn.
These included the establishment of a Medical and Nursing College in Gilgit at a cost of Rs4.924bn and a National Defence University (NDU) FCS Campus at Defence Complex Islamabad at an estimated cost of Rs2.75bn.
The forum also approved construction of a 53.4-kilometre road linking Zera with Daboori in Orakzai district at a cost of Rs4.037bn.
Ahsan Iqbal directed the release of funds for the road project before the winter season to facilitate construction. The project has remained pending since 2016.
