Parliament Lodges: Project suffers from delays, multiple cost overruns

ISLAMABAD: The Capital Development Authority’s (CDA) Rs740 million in outstanding liabilities related to the long-delayed construction of the 104 Parliament Lodges has effectively stalled progress on the project, highlighting ongoing issues with management and fiscal discipline, the Senate House Committee was told Tuesday.

At a meeting chaired by Senator Nasir Mehmood, Sub-Committee of Senate House Committee was plainly told that no new construction work can begin until the outstanding dues are cleared. This financial impasse adds to persistent delays and cost overruns that have plagued the project since its launch in 2009.

Committee members scrutinized inefficiencies in budget use and contractor performance. The 104 Lodges, originally due for completion in 2011, remain unfinished more than 14 years later, with timelines repeatedly extended amid ongoing litigation and arbitration.

Officials said disputes and legal complications have discouraged contractors, leading to a fragmented re-tendering process that has further hindered progress.

Routine maintenance and repair efforts have also suffered. Despite an estimated Rs200 million already spent on repairs, much work remains pending, with essential tasks such as cleaning, CCTV installations, and contract terminations proceeding only in a piecemeal manner.

Senator Mehmood expressed serious concern over the ongoing delays and financial uncertainties, demanding a detailed breakdown of expenditures excluding routine salaries and calling for immediate settlement of liabilities. “These unresolved dues not only stall progress but also reflect a lack of seriousness in managing public funds,” he said.

The committee emphasised the need for transparency and accountability, calling for a comprehensive financial report and strengthened oversight.

Senator Danesh Kumar also raised concerns about budget discipline, requesting explanations for the allocation and spending of Rs1 billion from the previous fiscal year, excluding salaries.

The Ministry of Interior acknowledged that 50 per cent of the funds had already been allocated in the first quarter, leaving minimal savings available, underscoring strained financial management and competing priorities that could further jeopardize completion.

The situation raises concerns over bureaucratic delays, planning deficiencies, and fragmented execution, casting doubt on the government’s ability to deliver key infrastructure projects.

The committee decided to summon the Finance Secretary to expedite liability settlements and consider budget re-appropriation, signalling growing impatience with CDA’s performance.

Copyright Business Recorder, 2025