The Executive Committee of the National Economic Council (Ecnec) has reportedly refused to approve a project called ''Water conservation and productivity enhancement through high efficiency'', across the country at the federal level, after USAID showed interest to work only in Punjab, sources told Business Recorder. Ecnec, sources said, was recently informed that the original PC-1 of the project was approved by the Ecnec in its meeting on September 19, 2007 will cost Rs 18 billion.
The project was operated by the Federal Management Cell, Ministry of Food and Agriculture (Minfa), up to July 2009, but progress was poor. Consequently, the President/Prime Minister secretariat issued directive on June 8, 2009 for transfer of the project from the Ministry of Food and Agriculture to Pakistan Agriculture Research Council (PARC), headed by Dr Zafar Altaf, a former Secretary, Minfa.
According to sources, the Planning Commission apprised the Ecnec in its meeting on December 9, 2010 that now PARC has submitted revised PC-1 with the changed administrative arrangements, implementation strategy and scope of work. The project will now be implemented by the PARC. The design, supervision, monitoring, quality control, research and technical services will be the responsibility of PARC, instead of the consultants.
According to Minfa, the main objective of the project is to increase agricultural production by utilising available irrigation water efficiency through installation of high efficiency irrigation system, both in Barani and canal command areas. Ecnec was further informed that the project was considered by the CDWP in its meeting held on November 3, 2010 and recommended for approval considering the provincial reservations and in a cost-effective manner.
Ecnec was requested to approve any one of the following two options: (i) Pakistan Agriculture Research Council be allowed to execute the project at a rationalised cost amounting to Rs 13.850 billion; and (ii) provinces be asked to submit their individual PC-1 as USAID is interested to work only in Punjab.
Sources said that the Ecnec deferred the project, with directions to revisit the project, as sponsoring agency has not yet provided the required information, including feasibility, scope, costs, quantities and manpower rationalisation. Besides, after 18th amendment in the Constitution, Minfa will be dissolved and its functions would be entrusted to provinces. Therefore, provinces need to be taken on board and their respective share in running this project worked out and a new summary be submitted to the next Ecnec meeting.
Ecnec Chairman Finance Minister Dr Abdul Hafeez Shaikh observed that due to financial crunch, available resources needed to be managed effectively at all levels to ensure timely execution of projects and without cost overrun. "Timely completion of projects would benefit the public at large. Effective supervision will ensure equality and minimise pilferage".
He further went on to say that in the preparatory stage of any project, cost-effectiveness should be the key ingredient of the projects so as to ensure optimum utilisation of available resources, which are scarce. He noted with concern that projects containing foreign components ie loan/grant are presented at this forum without verifying the availability of the said facility. This aspect must be accorded due priority, in future, he observed.