Rs.50bn required for next budget: ERRA

ISLAMABAD: Earthquake Reconstruction and Rehabilitation Authority (ERRA) require Rs. 50 billion for the fiscal year (2012-13).

Talking to APP Director Planning ERRA, Brig. Pervez H Niazi said, "We are confronting a loss of 30 to 40 percent per year due to inflation and destruction, if funding is not provided in time the construction cost would increase".

He said the authority is facing problems due to funding constraints, adding that during the last fiscal year (2010-11) they have demanded Rs. 30 billion for its projects but only Rs. 2 billion were approved in the annual budget.

However, he said the authority has received Rs. 10 to 12 billion through supplementary grants.

This year they have demanded 51 billion but only 10 billion were approved out of which Rs. 5 billion was supposed to be given to the authority till December 2011, but they have so far received only 1.3 billion.

He further informed that they also need Rs. 40 billion for the pending targets of the current year to clear their backlog. He informed they have to pay Rs. 2 billion as construction liabilities for which constructors are pressing hard but they do not have enough financial resources for mitigating their demands.

If the cash flow is smooth, the projects of the authority would be completed in time but these issues affect their progress badly, he commented.

The director said ERRA has the capacity to do reconstruction and rehabilitation work in any earthquake hit area. He further informed that the authority has completed 4325 water and sanitation projects in earthquake hit areas ensuring access of clean drinking water to 80 percent population.

"ERRA has been assigned to execute 4,746 Water and Sanitation Projects and it has successfully completed 91.13 percent of these projects under its commitment of giving better life style to the people", he commented.

Copyright APP (Associated Press of Pakistan), 2012