ISLAMABAD: The sub-committee of the Senate Standing Committee on Communications was informed that 33 projects were completed at increased costs — almost 13 percent more than the initial bid.
A meeting was convened under the chairmanship of Senator Saifullah Abro at the Parliament Lodges. Senior officers from the Ministry of Communications and the National Highways Authority (NHA) were present. The sub-committee reviewed various completed and ongoing projects of the NHA to identify cost overruns and the reasons for it.
Main reasons for increased costs of projects were difference between financial funds and financial phasing in PC-I, cost escalation, additional scope of work and land acquisition issues.
The sub-committee reviewed in detail 10 projects that include the Larkana–Khairpur Bridge project, Lakhi-Naudero–Larkana project; Larkana–Moen jo Daro Road project, the West Bank Bypass in Muzaffarabad, Moosa Pak Shaheed Bridge, and Gharo-Keti Bandar Road. The Hyderabad–Sukkur Road project was also discussed in detail.
Chairman committee Senator Saifullah Abro directed that a letter must be written to the chairman NHA regarding irregularities. He stressed that Public/Private Partnerships were the way forward and that all-out efforts must be made to ensure transparency of the bidding process. The ministry was directed to carry out amendments in the data presentation.
While discussing the prequalification process Senator Saifullah Abro stressed the need for transparency in the process. He was of the view that following international standards in this regard would be helpful. Stressing the need for improving security situations, the convener committee stated that this was an essential step towards prosperity and development.
The major issues observed in projects were initiated in between 2008-2013; 25 out of 35 projects fell into this category. It was asserted that background research must be stringent so that cost overruns are prevented. Following international standards was in order to minimise escalation costs, as seen in most Asian Development Bank (ADB) projects, was stressed.
The convener committee was of the view that cost overruns and escalation costs must be investigated minutely in order to curb irregularities in various projects.
Copyright Business Recorder, 2022
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