Inadequate budgetary allocations: NHA throw-forward accumulates to Rs1,104bn

ISLAMABAD: The throw-forward of the National Highways Authority (NHA) has accumulated to Rs1,104 billion, as a result of inadequate budgetary allocations contrary to the actual demands, which is severely hampering/delaying projects execution, it is learnt.

Official documents revealed that NHA’s per year demand of funds for the previous few years has remained between Rs300-350 billion, whereas, allocations in the range of only Rs105-115 billion have been made available which is less than one-third of the actual demand, resulting in accumulating huge back lock in the shape of throw forward.

The NHA plans and executes road infrastructure projects in line with the vision and strategy of the government to boost the economic growth of the country. Based on the priorities set forth by the government, allocations are proposed in Public Sector Development Programme (PSDP) as per the financial phasing plan approved by the Central Development Working Party (CDWP) and the Executive Committee of the National Economic Council (ECNEC) while approving project PC-Is.

Due to the non-allocation of funds as per the approved financial phasing plan and committed in the authorization letter issued by Planning Commission, the execution of the projects has been severely hampered/delayed. As a result of inadequate budgetary allocations contrary to the actual demands, the throw-forward has accumulated to the amount of Rs1,104 billion.

Official sources said the current pace of approval of new NHA projects was not sustainable and ongoing or new schemes could not be completed on time with available funding. The budgetary allocations far less than the approved financial phasing plan committed in the authorization letter has not only delayed the completion of the projects but also resulted in giving rise to lodging financial claims by contractors.

Implementation of any project is 100 percent dependent on the availability of funding requirements as per the financial phasing plan approved by CDWP/Ecnec in project PC-Is. The NHA has the capacity to deliver and complete the projects well within the stipulated timelines provided the funds are timely made available as per the approved funding requirements. Therefore, project planning and execution is totally dependent on the availability of funds allocations and timely release of funds.

The demand for the next three to four years is about Rs300 billion per year. If this funding is made available, then the NHA will be able to complete all projects well within given/scheduled timelines. Ongoing projects are accorded priority so that the delay in completion can be avoided. NHA undertakes projects approved by the competent forums i.e. DDWP, CDWP and Ecnec, the official added.

Copyright Business Recorder, 2022