Flood Protection Sector Project-III: ECNEC forms inter-provincial steering body for monitoring

ISLAMABAD: The Executive Committee of National Economic Council (ECNEC) has constituted inter-provincial Steering Committee to monitor Rs 195 billion Flood Protection Sector Project-III (FPSP-III), official sources told Business Recorder.

At a recent meeting of ECNEC, the Ministry of Planning, Development and Special Initiatives briefed the forum about the case. Emphasising the need for the project, secretary, the MoPD&SI stated that the project was part of the National Flood plan and was meant for all provinces and special regions.

A major share of financing was earmarked for the flood-hit provinces of Sindh and Balochistan. The secretary Economic Affairs Division (EAD) noted that partial financing for the project was being arranged through the Asian Development Bank (ADB). It was further informed that the umbrella PC-1 was considered by the CDWP in its meeting held on May 23, 2023 which recommended it at an estimated cost of Rs 194,625.00 million including FEC of Rs 10,862.94 million with some additional recommendations.

The forum observed that the provinces need to have a clear understanding of their respective contribution in the project and that each province would earmark respective funding in the Annual Development plan as agreed.

The Ministry of Planning, Development and Special Initiatives submitted the project for consideration and approval of the ECNEC at a cost of Rs 194,625 million including FEC of Rs 10,862.94 million with the following recommendations: (i) the project will be financed as per following plan, GoP equity = 20% Federal Components + 10 % Provincial Components, Provinces = 10% Provincial components), donor financing 80 %; and (ii) loan will be repaid as per the following mechanism: Federal Components = 100% by Federal Government, Provincial Components = 50% by Federal Government and 50% by the respective Provincial Government.

The EAD will confirm, clear financing by each agency/donor. Provincial governments will ensure repayment of loan amount on 50% cost sharing by federal and provincial governments.

The Steering Committee will be constituted under the chairmanship of Deputy Chairman, Planning Commission. The other members will include, secretary Ministry of Water Resources, secretary Ministry of PD&SI, secretary Ministry of Aviation, provincial chief secretaries, provincial Irrigation secretaries, chairman Wapda, member (I&RC) Planning Commission, chief (Water Resources) Ministry of PD&SI, chief engineering adviser/chairman, Federal Flood Commission and chief engineer (Floods)/ CEA/ CFFC along with others. The meeting will be conducted on quarterly basis.

The monitoring teams along with representative of Water Resources Section of Ministry of Planning, Development and Special Initiatives will monitor the intervention during implementation and will report to Steering Committee on quarterly basis.

Ongoing PSDP financing of Normal Emergent Flood Programme will be merged in the project after approval by the ECNEC.

The Government of Pakistan and provincial governments shall ensure requisite financing as per financial phasing mentioned in the umbrella PC-l and in accordance with the decision of CCI i.e. provision of funds at the rate of 50:50 for implementation of all individual sub-projects (located in four province’s) including donor financing. Separate PC-1s of all the schemes along with Feasibility Studies, EIA Reports, NOC of EPAs, Detailed Engineering Design and BoQs will be submitted for approval of relevant forums (DDWP/CDWP& ECNEC) as per Planning Commission guidelines.

The Steering Committee shall work in accordance with the Terms of Reference of the Steering Committees specified in the umbrella PC-l of the FPSP-III.

Copyright Business Recorder, 2023