Senate panel told: Rs 300 billion-350 billion needed for K-IV and other Karachi projects

Minister for Planning, Development and Reform Khusro Bakhtyar Friday informed the Senate Standing Committee on Planning, Development and Reform that Rs 300-350 billion are required for K-IV water supply and others projects to address the issues of water, sewerage and sanitation in Karachi.
The committee met with Senator Agha Shahzaib Durrani in the chair here at Parliament House. The committee discussed the current status of K-IV water project, 44 new schemes in PSDP-2019-20 and others.
While briefing the committee on current status of K-IV Water Supply project, the minister said that Rs 300-350 billion would be required in five to seven years to address the issues of water, sewerage and sanitation of Karachi.
The committee also expressed serious concern over increase in the cost of K-IV water project from Rs 25 billion to Rs 120 billion, which is almost five times higher than its initial estimated cost in 2004.
The committee was also given a briefing on the current status of K-IV Water Project regarding the flaws in the alignment proposed by consultants and challenges being faced in transmission and distribution channels of water.
The minister told the committee that meetings were held a few days ago with the government of Sindh and the matter was discussed at length.
He said that NESPAK presented the initial K-IV design review findings and will propose design improvements after completion of its technical study by end of September 2019. He said that NESPAK will submit complete feasibility study of technically viable and economically feasible solution of K-IV project to the government of Sindh within two months. He said that Joint Technical Review Committee will review and assess the NESPAK report.
The committee directed that TORs of this joint committee should be shared with this committee of the Senate.
The chairman committee emphasized on the need of paying due consideration to consultants hired for such projects as they later contribute in cost escalation and extended timelines. The committee also observed that huge responsibility lies on the Ministry of Planning that vets all the projects and it must have responsible people for this job. He directed the ministry to investigate the delays and irregularities in K-IV project and penalise the responsible people.
The committee also expressed serious reservations over inclusion of 44 non-approved schemes in Public Sector Development Program (PSDP)-2019-20.
The committee chairman said that these schemes never appeared in PSDP presented to the Senate and this committee.
The committee during its meetings on PSDP-2019-20 proposals had been assured that new projects under provincial domain and unapproved projects will not be included in the PSDP. The committee also observed that the committee had been assured that no project will be funded from PSDP which is to be funded by SDGs; however, no recommendation of the Senate was entertained at any time.
Despite all these assurances, 44 unapproved projects were included in new PSDP book which were never presented in the Senate. He further said that inclusion of such projects in PSDP is unconstitutional.
The secretary Planning, Development and Reforms told the meeting that the PSDP for the current financial year amounted to Rs 701 billion and the amount has not been increased. He said that new schemes were included after seeking approval from the National Economic Council (NEC). He said that while staying in the same amount, some new schemes were added considering the needs in less-developed areas but no one was added after the Parliament passed the finance bill. He said that consultations keep going on at all stages and with all stakeholders including parliamentary committees and so some changes were made after consultations were made with this committee.
Even, Leader of the House in Senate Senator Shibli Faraz also expressed concern over the procedure adopted for finalization of the schemes. The chairman constituted a sub-committee comprising Senators Mir Kabeer Muhammad Shahi, Rukhsana Zuberi and Hidayatullah to probe this matter.
While discussing the draft Energy Policy 2019, the committee asked Alternative Energy Development Board (AEDP) to share the draft with the committee for its input and also asked for an extensive briefing on what incentives are being provided to investors for renewable energy sector.
Durrani was of the view that the directions were also given in the last meeting to make the new draft an investor friendly and it should offer incentives to businesses as well as overseas Pakistanis so that they can help make Pakistan's energy grid a good mix of renewable and non-renewable energy.
About the renewable energy, Shibli Faraz was of the view that renewable energy is being discouraged intentionally and many people who came to invest in this sector are going away again. He said that investors have to be incentivised as there is a strong lobby that is active in this regard and doesn't want their businesses get affected.
On the matter of extensive amounts being paid as subsidy to tube wells in Balochistan, the committee observed that there should be a permanent solution to this by either solarising the tube wells or some other solution.
The minister told the meeting that in this matter lead will have to be taken by power ministry while ministries of finance and planning will assist.
The committee decided to call a joint meeting of power and planning ministries and government of Balochistan to discuss the matter and recommended the officials to come up with as many business proposals for the matter as the ministry of power can. The committee was told that feasibility study on water table situation will be completed by March 2020 and then a work plan will be formulated.
The committee was given a briefing by DG Gwadar Development Authority on necessary facilities of fresh water treatment, water supply and distribution system in Gwadar.
It was told that current daily demand of the city stands at 7.48 MGD and supply is 2.5 MGD. With completion of Shadi Kour Dam transmission line, the city will manage to get additional 5 MGD. However, the distribution network to supply the water at home is still not in place and the infrastructure which was to be established in phase 3 of the project will have to start simultaneously.
The committee appreciated GDA for timely completion of phase-I and the progress of Phase-II of Gwadar drinking water supply scheme. The committee also asked GDA to submit a revised PC-I of the Phase-III to Planning Commission and committee within ten days and asked the Ministry of Planning to prioritize its funding so that work on this project can be expedited.