The cost of Munda hydropower project increased through flawed calculation of Probable Maximum Flood (PMF) by the consultants and a committee has been constituted to rationalize it. According to documents available with Business Recorder, the second revised PC-II of the project was approved on 13-03-2014 at a cost of Rs 937.86 million. However, WAPDA could not complete the project within stipulated time and cost.
Now, sponsors have come up with third revised PC-II costing Rs 1097.76 million. The major reasons for the increase in cost are 8 additional man-months caused by faulty calculation of Probable Maximum Flood (PMF) by the consultants and imposition of a new tax by the Government of Punjab.
The documents further revealed that the project was approved in principal with the condition that cost increase caused by an error on the part of the consultants should be borne by the consultants and cost of project would be rationalised by a Committee headed by the Member Infrastructure and Regional Connectivity with representatives from the Ministry of Water and Power, WAPDA, Economic Appraisal Section and Water Resources Section, Ministry of Planning, Development & Reform.
Federal Minister for Planning, Development and Reforms Ahsan Iqbal directed that cost estimates be thoroughly reviewed by a committee chaired by Member (I&RC). The documents said that the Chief Water Resources of Ministry Planning, Development and Reforms further submitted in a meeting that cost increased due to flawed calculation of PMF which must be borne by the consultants and zero tolerance may be offered in this regard.
Ahsan Iqbal said that at least one mega project from each province should be ready for groundbreaking ceremony on 14th August, 2017 so that 70th independence day of the country may be celebrated in a befitting manner. The Chairman WAPDA submitted that project will be ready for groundbreaking ceremony on 14th August, 2017. However, Chief (Water Resources) pointed out that this can only happen if PC-I of the project is submitted by June 30, 2017.
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