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Express Tribune
24-05-2025
- Business
- Express Tribune
CDWP okays seven projects worth Rs104b
Listen to article Minister for Planning Ahsan Iqbal on Friday chaired a meeting of the Central Development Working Party (CDWP) that approved seven projects worth Rs104 billion. "Out of these, four projects with a cumulative cost of Rs8 billion were approved at the CDWP level. Additionally, three major projects, amounting to Rs96 billion, were recommended to the Executive Committee of the National Economic Council (Ecnec) for final approval," a news release said. The forum approved two projects relating to industries and commerce namely the "1,000 Industrial Stitching Units (Phase-II)" worth Rs1,950 million and the "Acquisition of Land for Establishment of SME Facilitation Centres at Various Locations" worth Rs1,250 million. It gave the go-ahead to two projects pertaining to information technology namely the "Development of Pakistan Lunar Exploration Rover (PLExR) for Chang'E-8 Mission" worth Rs2,535 million and the "Pakistan Manned Space Mission" worth Rs2,243 million. The CDWP referred three projects belonging to the transport and communication sector to Ecnec including the "Improvement of Road from Sanghar to National Highway N-5 at Point Rohri via Mundh Jamrao and Saleput 0.00 to 221 km" with a revised cost of Rs36,910 million. Another project titled the "Construction of Additional Carriageway along Mehran Highway from Nawabshah to Ranipur (135 km)" was forwarded to Ecnec at a revised cost of Rs41,034 million. The forum referred a project called the "Improvement of Road from Rohri to Guddu Barrage @ M-5 Interchange Sadiqabad via Khanpur Mahar, Mirpur Mathelo & Mureed Shah (150 km)" to Ecnec at a revised cost of Rs17,971 million.
Business Recorder
21-05-2025
- Business
- Business Recorder
CDWP approves four projects worth Rs21.83bn
ISLAMABAD: The Central Development Working Party (CDWP) cleared a total of 10 development projects at a cost of Rs 249.17 billion. The CDWP approved four development projects at a cost of Rs 21.83 billion and referred six development projects valued of Rs 227.34 billion to the Executive Committee of the National Economic Council (ECNEC) for final consideration and approval. The CDWP met with Federal Minister for Planning, Development and Special Initiatives and Deputy Chairman of the Planning Commission Ahsan Iqbal in the chair at P-Block Secretariat. The meeting was attended by Awais Manzur Sumra, Secretary Planning along with chief economist, VC PIDE, other members of the Planning Commission, federal secretaries, heads of Provincial Planning and Development (P&D) departments, and senior representatives from relevant federal ministries and provincial governments. The agenda focused on development projects across key sectors, including transport and communications, environment, higher education and information technology. A project related to information technology was presented in the meeting namely, 'Expansion of Safe City, Islamabad (New)' at a cost of Rs 7,499.339 million approved by the CDWP forum. The project is proposed to be financed through PSDP. Currently, 35 percent of Islamabad is under surveillance through Safe City project after completion of project 100 percent all major areas including major roads, religious places, VVIP areas and government buildings, entry/exit and other important points will be covered. It is pertinent to mention that existing project was planned for coverage of 13 police stations which is now expanded to 28 police stations. The ICT Police facing challenges to have monitoring/surveillance of complete territory of Capital City. Additional 3,655 cameras will be installed in addition to already installed cameras. The scope of the project includes comprehensive capacity building through training programmes for executive staff on all modules developed under the initiative. It also encompasses development of advanced software and analytics capabilities, along with the implementation of an Integrated Video Management System (IVMS). Key features include Automated Number Plate Recognition (ANPR) for standardized plates, facial recognition using high-quality photographs matched against a standardised database, and enhanced traffic management systems. These systems will enable vehicle identification, integration with excise and stolen vehicle databases, as well as vehicle count and classification. The project also involves the installation and distribution of essential hardware, including screens, servers, fixed and PTZ cameras, ANPR cameras, and network distribution switches, ensuring a fully integrated and functional system. A project of higher education sector presented namely, 'Establishment of National Center for Quantum Computing (NCQC) – (New)' worth Rs 3,318.363 million approved by the CDWP. The scope of work for the establishment of the National Center for Quantum Computing (NCQC) includes civil works encompassing HVAC systems and furniture, along with the setup of specialised laboratory equipment for quantum computing and training. It also covers the provision of furniture and fixtures, licensing costs for HUB, UET Main Campus, GIKI, and NED Karachi, as well as human resource expenses. The project includes MS scholarships, international training programmes, institutional linkages, and travel expenses including TA/DA, all combined for the aforementioned institutions. While thoroughly discussing the project, the DCPC and Minister Ahsan Iqbal emphasised that 'Establishing a National Centre for Quantum Computing in Pakistan' is essential to securing the country's technological sovereignty and enhancing its future global competitiveness. He said that quantum computing holds transformative potential in fields such as cybersecurity, artificial intelligence, drug discovery, and climate modeling. Another project related to higher education sector presented in the forum namely, 'Higher Education Development in Pakistan (HEDP) (Revised)' was referred to ECNEC with a revised cost of Rs 21,190.777 million. Under this project tertiary education in Pakistan includes universities and affiliated colleges (ACs), with the former overseen by the Higher Education Commission (HEC) and the latter jointly managed by universities and provincial departments. Six transport and communication projects were presented during the meeting, including the 'Dualization of Sargodha–Khushab–Mianwali Road (60.43 km) in District Khushab – (Revised),' which was referred to ECNEC for further consideration at a revised cost of Rs 11,806.516 million. The project envisages construction/dualisation of 60.43-km long and 7.31-meter wide (having formation width 27.432-meter wide) into a 4-lane dual carriageway from Khushab to Mianwali, in District Khushab. The project road passes through Jauharabad, Hadali, Botala, Mitha Tiwana, Okhali Mohala, Quaidabad, Bandial, which is terminates at Mianwali. The scope of work, includes, construction of bridge on over River Jhelum, flyovers, walkways, box and pipe culverts, retaining walls, pile foundation of bridge. The scope of work also includes, construction of drain, stone pitching, median, toll plaza, improvement of main chowks, provision of shoulders on either side along with allied structures. Another project of T&C sector presented namely, 'Development of a Controlled Access Corridor Facility from Niazi Interchange to BabuSabu Interchange, Lahore (New)' worth Rs 10,842.253 million referred to ECNEC for further consideration. Another project of the T&C sector presented namely, 'Dualisation of Road from Gujranwala to M-2 Interchange at KotSarwar via Hafizabad Length (70.5 Km) (Revised)' which was referred to ECNEC for further consideration at a revised cost of Rs 13,230.672 million. The revised project envisages dualising the existing 2-lane road from Alam Chowk in Gujranwala to KotSarwar Interchange at M-2 via Hafizabad, with a total length of 74.15 kilometres. The alignment passes through two districts, covering 34.00 kilometres in Gujranwala District and 40.15 kilometres in Hafizabad District. The proposed dual carriageway will consist of a 24-feet wide main carriageway with 4-feet and 2-feet wide shoulders on either side. Rigid pavement and a service carriageway are proposed in built-up areas, while the main carriageway will be constructed using flexible pavement with 5-inch thick asphaltic concrete laid in two layers. The scope of work also includes the widening of existing culverts as per site requirements and the provision of one flyover at Ladhaywala Waraich to ensure smooth traffic flow and to address the narrow Right of Way (ROW) in that area. A project of Pakistan Railways was also presented and approved, 'Rehabilitation of Track Maintenance Machines (Revised)' worth Rs 5,312.876 million by the forum. A project related to T&C sector presented in the meeting namely, 'Reconstruction of National Highway N-5 under Pakistan's Resilient Recovery and Reconstruction Framework Project, Phase-I 210 Km (New)' worth Rs 155,408.403 million referred to ECNEC for further consideration. The project is proposed to be financed through foreign funding on 90:10 sharing basis, 90 percent to be provided by the AIIB and 10 percent through PSDP. The Project PC-I of Phase-01, under Pakistan's Resilient Recovery and Reconstruction Framework, involves the reconstruction, rehabilitation, and conversion of a 210-kilometre stretch of the N-5 (GT Road) from a 4-lane to a 6-lane wide dual carriageway. The project scope includes the construction of a 7.3-metre wide service road in urban areas, upgrading the existing corridor into climate-resilient infrastructure with additional cross drainage structures, widening and improvement of existing bridges, geometric enhancements, installation of road safety devices, pedestrian bridges, and provision of dedicated U-turns. Phase-I of the project comprises two sub-phases, Phase I-A and Phase I-B, covering a total of 210 kilometres. Phase I-A, spanning 141 kilometres, includes the sections from Ranipur to Rohri, Rawalpindi to Hassanabdal, and Nowshera to Peshawar. Phase I-B, covering 69 kilometres, includes the Lahore to Gujranwala section and the NaiBaran Bridge. A project related to T&C sector presented in the meeting namely, 'Dualisation of Road from Chishtian to Chak No 46/3R via Dahrnawala (41.154 km) including Two Lane Link Road from Dahrnawala to Chak 175M (4.859 km)-(Revised)' worth Rs 14,859.054 million referred to ECNEC for further consideration. The source of financing is based on 50:50 cost-sharing basis between the federal government and the Government of Punjab. The project aims to provide safer, faster, and more efficient transportation. The dualisation will enable smooth traffic flow, significantly reduce accidents, lower vehicle operating costs, and save travel time. It will also generate employment opportunities for local communities. Aligned with national transport sector objectives, the project addresses inefficiencies in Pakistan's road transport system—such as slow speeds, high costs, and low reliability—which hinder trade competitiveness and increase the cost of doing business. By supporting a more efficient and sustainable highway network, the project will contribute to economic growth and better integration into global supply chains. A project related to environment sector presented in the meeting namely, 'IPF Component for Punjab Clean Air Programme (PCAP) (New)' worth Rs 5,700.351 million approved by the CDWP. The project is proposed to be financed through foreign funding. The Punjab Clean Air Programme (PCAP) is a comprehensive initiative aimed at addressing the severe air pollution crisis in Punjab through a multi-sectoral approach involving key sectors such as transport, environment, and agriculture. The programme includes the introduction of electric buses and electric two- and three-wheelers, alongside the strengthening of vehicle inspection and certification systems. It also focuses on enhancing air quality monitoring and fuel testing laboratories to ensure compliance with environmental regulations. The PCAP prioritises public health and sustainability by targeting the reduction of PM 2.5 emissions and raising community awareness. Additionally, it promotes sustainable agricultural practices by subsidising Super Seeders to prevent crop residue burning, offering a practical solution to improve air quality, safeguard health, and support eco-friendly transportation. Copyright Business Recorder, 2025
Business Recorder
16-05-2025
- Business
- Business Recorder
CDWP clears development projects worth Rs15.9bn, refers Rs127bn schemes to ECNEC
The Central Development Working Party (CDWP) on Friday approved ten development projects, five of which, worth Rs15.9 billion, were cleared at its own level, while five major schemes amounting to approximately Rs 127.1 billion were referred to the Executive Committee of the National Economic Council (ECNEC) for final approval. The meeting, chaired by Federal Minister for Planning, Development & Special Initiatives Ahsan Iqbal, reviewed proposals across multiple sectors including higher education, IT, environment, governance, and transport. Among the key projects referred to ECNEC was the Rs40.76 billion revised FBR modernization project, aimed at overhauling the tax authority's digital infrastructure with World Bank funding. It includes cloud deployment, software upgrades, and the rollout of advanced tools like e-way billing, vehicle tracking, and faceless assessments. ECNEC approves 9 uplift projects worth Rs355.736bn Another major referral included the Rs27 billion Chief Minister Punjab Laptop Program, a non-PSDP-funded initiative to distribute laptops to over 112,000 students across the province to promote digital literacy and human capital development. CDWP also referred the Rs12.3 billion Sindh schools reconstruction project to ECNEC. The project aims to rebuild flood-damaged schools, with a focus on girls' and mixed-enrollment institutions in the worst-hit districts. Two transport projects in Sindh, the Rs37.7 billion Sindh Coastal Highway (Phase II) and the Rs9.28 billion dualization of Tando Allahyar–Tando Adam Road, were also forwarded for ECNEC consideration. Projects approved at the CDWP level include the Rs7.4 billion Revamping IT Industry Landscape, aimed at workforce training and strategic branding to boost exports, and the Rs2.45 billion innovation centre at Islamia College University, Peshawar. Ecnec approves 13 key projects worth Rs1.275trn In the environment sector, the CDWP approved a UN Habitat-funded Rs106 million project for developing a national urban strategy and climate resilience guidelines to reduce the impact of urban flooding and climate disasters. Speaking during the meeting, Ahsan Iqbal stressed that only those projects that directly contribute to institutional efficiency and national growth should be included in the Public Sector Development Programme (PSDP). He emphasized aligning projects with the 'URAAN Pakistan' vision, ensuring cost transparency, and curbing inflated estimates. The minister also directed the Planning Ministry to develop a construction rate notification mechanism and encouraged coordination between the Higher Education Commission (HEC) and Punjab government for consolidated laptop procurement.
Express Tribune
27-04-2025
- Business
- Express Tribune
Lahore to undergo major transformation with Rs49b tunnel boring project
Listen to article The federal government has reportedly approved Lahore's Tunnel Boring Project, estimated at Rs49 billion, according to local media report. The proposal was first reviewed and approved by the Central Development Working Party (CDWP) before being sent to the Executive Committee of the National Economic Council (ECNEC) for final authorisation. Sources noted that obtaining CDWP's clearance was a critical step before securing ECNEC's endorsement. The project involves the construction of a major underground sewerage line using tunnel boring technology, extending from Larex Colony to Gulshan-e-Ravi. Funding will be provided through a soft loan from the Asian Infrastructure Investment Bank (AIIB). The 28-kilometre line will pass through key locations including Shima Pahari, Queens Road, the Punjab Assembly, AG Office, Chauburji, Railway Colony, Sham Nagar, and end at the Gulshan-e-Ravi Disposal Station. A second route will cover Gulberg, Zafar Ali Road, Shadman, LOS, and Samanabad before merging into Gulshan-e-Ravi. The project is designed to minimise surface disruption, as no new roads will need to be constructed. The Water and Sanitation Agency (WASA) had earlier secured PC-1 approval and collaborated with an international firm for feasibility studies and project design.
Express Tribune
13-04-2025
- Business
- Express Tribune
Dasu inquiry fails to fix responsibility for soaring cost
Listen to article An official inquiry has not fixed the responsibility for an "astronomical increase" of 240% in cost of the Dasu Hydropower project to $6.2 billion on any single entity or individual but pointed figures at Chinese contractors, Wapda and the Planning Commission. The three-member committee also blamed the local administration of Kohistan district for a delay in land acquisition. It said that the cost was increased by Rs48 billion because of enhanced security arrangements after two deadly attacks on the Chinese contractors. The impact of security arrangement was hardly 3.8% in the total cost escalation. The report stated that "complex interplay of factors and unforeseen challenges" caused the 10-year delay and Rs1.3 trillion or 240% increase in the Dasu hydropower project cost to Rs1.74 trillion. In dollar terms, the cost was equal to $6.2 billion — an unreasonable price tag for a 2,160 megawatts hydropower project. The committee said that the Chinese contractor ignored the consultants' instructions, local administration could not timely acquire the land and more importantly Wapda awarded the construction contracts "without ensuring availability of the land required by the contractors, which resulted in delays and idle claims". The committee failed to fix the responsibility on any of the Wapda chairmen or any senior officer by name despite finding that it awarded contracts without having land in hand. The Planning Commission has been held responsible for underestimating land acquisition and resettlement problems. Headed by Planning Minister Ahsan Iqbal, the Central Development Working Party on Friday conditionally recommended the Dasu hydropower project for the approval of the Executive Committee of the National Economic Council. "It is a considered opinion that the delays in Dasu Hydropower Project (Stage-1) are the result of a complex interplay of factors," reads the findings of the three-member committee. In December, the government ordered the inquiry to identify the reasons and fix responsibility for inability to complete the project after the first revision made in the cost in 2019. The inquiry committee was led by civil engineer Ather Hameed. Among the other members was Syed Ayaz Muhammad Haider, director monitoring of the Water Resources Ministry and Imran Najam procurement expert of the ministry. The inquiry concluded that the construction delays have been compounded by unforeseen significant administrative challenges and procedural bottlenecks in land acquisition, compensation payment and resettlement processes". Unforeseen technical challenges have further distracted the project implementation schedule. Social issues, including community grievances and resistance, have further slowed progress, according to the committee. The inquiry committee further stated that the lack of seamless coordination between contractors and consultants, security challenges in the project area and natural causes such as difficult terrain, unforeseen geological conditions and flash floods have added to the delays. "These issues are interconnected, making it clear that no single stakeholder or entity can be solely held responsible", concluded the inquiry committee. When contacted, Water Resources Ministry Secretary Syed Ali Murtaza said that the inquiry was conducted by chief engineering adviser, which is an independent entity and is meant for undertaking such inquiries. The secretary further said that the inquiry committee found out that 85% increase in the cost was because of increase in the prices and the remaining 15% was due to changes in the scope and design of the project. The inquiry committee stated that the success of the project depends on a collaborative approach that fosters alignment and cooperation among the federal government, the provincial government of Khyber-Pakhtunkhwa, district administration of Kohistan, Wapda, contractors, consultants, and local communities. The inquiry recommended enhancing stakeholders' coordination, streamlining the compensation and resettlement processes. It also proposed proactively addressing social issues particularly on 132kV transmission line and implementing a robust management strategy to handle technical, social, and security challenges. But these are the issues that should have been catered for in 2014. The project has already been delayed by 10 years to 2029. The original PC-I costing Rs486 billion had been approved in 2014 with an aim to generate 2,160MW of electricity and the completion date was 2019. Due to increased land rate, the cost was revised to Rs511 billion in October 2019 and implementation was extended to June 2024. The main civil work contractor for Stage-I is M/s China Gezhouba Group Company (CGGC) while supervision is provided by a joint venture of M/s Nippon Koei of Japan and M/s Dolsar of Turkey in association with local sub-consultants including M/s DMC, M/s NDC and M/s PEES, according to January 2025 inquiry report. As of January, the overall physical progress is 23.3% and the financial progress at 23%, states the inquiry report on the second revision. The project is mainly funded by the World Bank, local and foreign commercial banks and through Wapda equity. So far, Rs317 billion have been spent on the project. The Rs1.73 trillion total cost included Rs479 billion interest on the loans to be taken for the completion of the project. The World Bank had given $517 million and out of which till December $385 million had been utilized. The Credit Suisse Bank also provided a $350 million loan. The local bank's consortium led by M/s Habib Bank Limited also provided a Rs144 billion loan against the original cost of the project. The World Bank is also ready to pour in another expensive loan of $1 billion for the project. Cost escalation break-up The inquiry report has listed a comparison of increased cost from Rs511 billion to Rs1.73 trillion. The civil works cost increased from Rs224.5 billion to Rs771 billion -a surge of Rs547 billion or 243%. The electrical and mechanical work cost increased from Rs54.3 billion to Rs87.3 billion -an increase of Rs33 billion or 61%. The social resettlement cost was increased from Rs57.5 billion to Rs140.3 billion — a surge of Rs82 billion or 144%. The security cost was increased from Rs1.5 billion to Rs50 billion -an increase of Rs48.2 billion or 3136%. The project has faced two suicide attacks resulting into killings of 15 Chinese nationals and four Pakistanis. The project administration cost was increased from Rs13.5 billion toRs54.4 billion — an increase of Rs41 billion or 304%. The consultancies cost was increased from Rs8.3 billion to Rs56.5 billion — a surge of R48.2 billion or 580%. Since the quantum of the loans jumped, so does the interest cost. The interest cost increased from Rs107 billion to Rs479 billion — an increase of Rs372 billion or 349%. The contingencies were increased from Rs44 billion to Rs99 billion -an increase of Rs55 billion or 124%. The inquiry committee said that there was a significant delay in acquisition of land of 9,875 acres. But the land cost impact had already been included in the first revised project, and it is not the reason for the cost escalation in the second revision. The committee noted that the design of the relocation of 52-kilometre-long Karakoram Highway underwent significant changes due to land acquisition delays and geological conditions. However, the committee did not fix the responsibility for ignoring geological conditions at the time of planning first in 2014 and then in 2019 when the project was revised. The committee validly identified the security as a reason for the delay but it increased the cost by only Rs48 billion out of the total additional increase in the cost of Rs1.27 trillion. Fixing Responsibility The inquiry committee identified lack of coordination between contractor and the engineer. It said that delays occurred due to "the contractor's failure to submit activity plans, frequent disregard for the consultant's instructions, insufficient deployment of resources despite repeated directives and inadequate coordination between the contractor and the engineer". It further said that the contractor's reports indicated that the resources currently available at each worksite are inadequate to achieve the target completion dates. The committee said that the district administration was responsible for acquiring the land, which it could not timely acquire. The committee said that the Wapda awarded the contracts without ensuring availability of the land required by the contractors, which resulted in delays and idle claims. The slow pace of the local area development programme eroded community trust and exacerbated local resistance, reflecting a lapse in Wapda responsibility for effective community agreement. "Both Wapda and the Planning Commission not only clearly underestimated land acquisition and resettlement but also showed lack of cognitive approach regarding project planning and scheduling without substantial completion of land acquisition and resettlement process". The inquiry committee said that the Chinese Contractor is also responsible for slow progress in the construction of the dam and powerhouse works due to mobilization of inadequate resources. The committee said that Dasu Hydropower Consultants ad Design and Supervision Consultants were responsible for "frequent design changes, which highlight shortcomings on the part of the design consultant. The absence of an approved dedicated PC-I for land acquisition as recommended by the Planning Commission, indicates a policy oversight that has contributed to the project delays.
