ISLAMABAD - The Executive Committee of the National Economic Council (Ecnec) on Wednesday approved development projects worth of Rs361.5 billion including the Sukkur-Hyderabad motorway project.
Federal Minister for Finance and Revenue Shaukat Fayyaz Ahmed Tarin virtually chaired the meeting of the Ecnec. Construction of Hyderabad- Sukkur (306 Km), 06 –Lane Divided, fenced motorway on Built Operate Transfer (BOT) Basis Revised was approved by Ecnec at the revised PC-I cost of Rs 191.471 billion. The project is to be implemented on BOT –user-charge basis with provision of capital and operational VGF to improve the financial viability of the project. The project is expected to be completed in 30 months.
A recent meeting of the Public-Private Partnership Authority chaired by Federal Minister for Planning, Development & Special Initiatives Asad Umar had already approved the Sukkur-Hyderabad motorway project.
The project is expected to be financed through debt-to-equity ratio of 70:30 after deducting government of Pakistan’s share of capital VGF in the project. The project is expected to provide 17 per cent equity IRR [internal rate of return] to the investor while generating NHA [National Highway Authority] revenue share amounting to Rs127 billion. It would be the biggest project under the Sindh development package announced by the PM in April. Prime Minister Imran Khan had on April 16 unveiled a historic development package worth Rs446 billion to develop backward areas of the Sindh through power supply, irrigation, sports and communication projects.
Ecnec has also approved the Gomal Zam Multipurpose Project (2nd Revised PC-I) at the total cost of Rs 25,928 million. The Forum also granted the Ex-Post Facto approval of the expenditures and financial closure of the project by relaxing the direction/ decision of the earlier meeting of Ecnec on 28-8-2013. The project is located on the Gomal River in South Waziristan, Khyber Pakhtunkwha. The main objective of the project is to harness flood water and provide assured irrigation water supply of 848 cusecs to irrigate 191,139 acres of land including 28,053 acres additional land which falls under the Waran Canal System and to generate 17.4 MW of electricity. Wapda is responsible for the execution and implementation arrangement of the project.
The Covid-19 Response and Other Natural Calamities Control Program (Sindh Component) was approved at the total cost of Rs 20,822.046 million without any foreign exchange component. Department of Health, government of Sindh will be responsible for sponsoring and executing the programme. The project will be completed on equally shared financing basis by the government of Sindh and the federal government through PSDP. It is expected to be completed by the end of year 2023. The project envisages strengthening of provincial health system to effectively respond to the pandemic like situations at THQ and DHQ hospitals. Ecnec also decided that any escalation in the cost of the project will be borne by the provincial government.
Ecnec also gave approval to the 30 MW Hydro Power Project Ghowari (2nd Revised) at the total cost of Rs16399.760 million. The project is located on the left bank of Shayok River near Ghowari Village in District Ghnache in Gilgit Baltistan. The project is expected to be completed in 4 years.
The 20 MW Hydro Power Project Hazel, Gilgit was also approved by Ecnec at the revised PC-I cost of Rs12, 921.662 million. The project will be executed by Water and Power Department, Gilgit Baltistan.
The Rainee Canal Project (Phase-1: 110 KM), Revised PC-I was approved by Ecnec at the total cost of Rs20, 533.836 million. Wapda is responsible for the execution of the project which will irrigate 412,400 Acres in Phase I at a design discharge of 5500 cusecs in districts of Kashmore, Ghotki, Sukkur and Khairpur.
The Construction of Hoshab–Awaran–Khuzdar Section of M-8 Project; Section 2: Awaran-Naal, length: 168 Km was also approved by Ecnec at the rationalized cost of Rs 32,244.82 million. National Highway Authority will be responsible for executing the project. The scope of work includes construction of bridges, box culverts, retaining walls/ toe walls, shoulders, along with drainage and allied works. The project is expected to complete in 42 months.
The Khyber Pakhtunkhwa Provincial Roads Rehabilitation Project “Under PKHA Portfolio” was also approved by Ecnec at the Revised PC-I cost of Rs 28,155.972 million. The location of the project is Khyber Pakhtunkwa Province, South, Central and Eastern Regions. The revised PC-I of the project envisages rehabilitation of 274 km of existing provincial highway network of Khyber Pakhtunkwa as compared to original scope of 214 Km. It is expected that the Project will complete by 2023.
The Chair, while discussing the projects, directed Planning Commission to prioritise projects that are strategic in nature or can be completed in a shorter period of time to save the exchequer from cost over runs and unnecessary delays in the completion of projects.
The Feasibility and Dualisation of Mardan-Swabi Road, Revised was also approved by Ecnec at the Revised PC-I cost of Rs13, 024.42 million. Communication and Works Department through Pakhtunkwa Highways Authority, government of Khyber Pakhtunkwa will be the executing agency of the project. The project is expected to complete by 2022-2023.
Ecnec also considered the summary for procurement of 600 Flat Container Bogie Wagons and forwarded the proposal to Public Private Partnership Board to develop a transaction structure on PPP basis.
Finance minister
meeting with CM GB
Meanwhile, Federal Minister for Finance and Revenue, Shaukat Fayyaz Ahmed Tarin, chaired a meeting virtually with Chief Minister Gilgit-Baltistan, Muhammad Khalid Khursheed here at the Finance Division.
The Provincial Secretary Finance gave a detailed presentation to the finance minister on the financial requirements of the GB administration during the current and next financial year. The finance minister said that the federal government is ready to cooperate with the GB government for the provision of additional funds during the next financial year but GB government should also rationalise its expenditures as the federal government is also exercising strict financial discipline.
The finance minister approved the requests of the GB government for the provision of additional subsidy incurred on purchase of wheat, issuance of NOCs for purchase of vehicles from already available funds to monitor developmental activities and grant of special exemption for purchase of school buses, health ambulances, excavators, road making machinery, operational vehicles for education, health works, water and power, emergency services and law enforcing agencies respectively.