Paucity of funds has forced the National Highway Authority (NHA) to stop construction of projects under the strategic National Trade Corridor (NTC), it is learnt. Informed sources in the Communication Ministry revealed that the outstanding liabilities of contractors against the NHA have reached Rs 26 billion due to financial crisis, resulting in project delays.
The NHA has also stopped maintenance work of most of the important roads including Motorway, as maintenance funds of these roads have been diverted to Larkana and Multan road projects, officials revealed. The most affected NTC road projects are N-5, KKH, Lowari Tunnel, N-10 and N-65 (Karachi-Quetta), sources revealed.
"Due to resource constraints, NHA is facing great difficulties in completing its projects in a timely fashion, resultantly there will be cost escalation and a greater burden on the national exchequer," sources maintained. Contractors'' liabilities against the Authority are soaring and only in Sindh province they have to pay Rs 3.5 billion to contractors. Rupees 247 billion is immediately required for different roads under the NTC.
Sources further revealed that different road projects linking Gwadar port to other parts of the country is likely to be further delayed due to scarcity of funds. A senior official of the NHA urged the government to spend major portion of Public Sector Development Programme (PSDP) on the construction of strategic NTC roads to bring prosperity and economic boom in the country.