Finance Division and Planning Division have refused to allocate additional funds for any development project outside Public Sector Development Program (PSDP) 2011-12 due to financial constraints. Both Divisions headed by Finance Minister Dr Abdul Hafeez Shaikh took strong position on Tuesday in a meeting of subcommittee of Senate on Water and Power, convened to discuss progress on Kurram Tungi dam, to be constructed in tribal areas.
The meeting was presided over by Senator Zahid Khan of Awami National Party (ANP). "No additional allocation is possible over and above Rs 300 billion already earmarked for PSDP for the current fiscal year," said the representative of Finance Ministry.
The answer of Planning Division''s representative, Asif Shaikh, did not differ from his colleague from Finance Division. They further maintained that the issue could be resolved through re-appropriation, but added that no re-appropriation is possible at this stage.
"Planning Commission is holding meetings to review progress on all development projects and as this process is completed we will be in a position to assess which project should be given less importance," said Asif Shaikh. Karrum Tungi dam will be completed in four years at a cost of Rs 59.65 billion. The project will also generate 83.4 MW electricity. Water and Power Development Authority (Wapda) requires Rs 440 million for the project including Rs 100 million for land acquisition.
Federal government had allocated Rs 22-23 billion in the budget for development projects of Wapda, and Kurram Tungi dam is among those projects. Of this amount, Wapda has utilised Rs 10 billion in six months. The Planning Commission has released only Rs 100 million for land acquisition which, according to Senators Zahid Khan and Saleem Saif Ullah, is not sufficient to meet urgent financial requirements.
Zahid argued that funds can be diverted from newly created Ministries, which according to him are unconstitutional after the approval of 18th amendment in the Constitution. It appeared as if he wanted to state that ANP would have opposed creation of new Ministries, but stopped short of saying it. Saleem argued that Wapda should allow private sector and provincial governments to construct such projects through private investment.
"We are disappointed due to this prolonged delay; it will be better to scrap this project. If we continue to rely on Finance and Planning, nothing will happen as they have no funds. Wapda should engage private sector for such projects," Saif Ullah added. Senator Gul Naseeb Khan of JUI reposed confidence in Wapda Chairman, saying that he would definitely resolve this issue.
Zahid showed annoyance over Finance and Planning Divisions, saying that if allocation of additional Rs 340 million is not possible at this stage, the government should take back the amount already given to Wapda for land acquisition. He criticised the government for allocating funds for IT projects to Punjab, Sindh and Balochistan.
"We know how projects are approved, on telephone, for other provinces," he added. Wapda Chairman Shakil Durrani informed the subcommittee that last year nothing was allocated for this project and this year only Rs 100 million has been released so far. Wapda needs money in July 2012.
He also apprised the subcommittee members that Wapda has arranged $ 480 million for the project which will be sufficient for two years'' requirements. "If we get Rs 340 million, issue of land acquisition will be resolved as Wapda has no source of revenue. Pepco is also not paying out billions of rupees. We have to suspend development of other projects to work on this project," he said. This project will irrigate 365000 acres of land--65000 acres in tribal areas and 300,000 acres in Laki Marwat and other adjacent areas.