ISLAMABAD: The Federal Government has refused to release more funds for remodelling of Warsak Canal System in Peshawar and Nowshera districts until Khyber Pakhtunkhwa (KP) government gives a matching release as per its share, official sources told Business Recorder.

This was the decision at a recent meeting of Executive Committee of National Economic Council (ECNEC) amid a demand from the Ministry of Water Resources that inquiry be conducted against the Consultants for poor designing of the project.

Ministry of Planning, Development and Special Initiatives, briefed the ECNEC about the issues facing the project. It was noted that the project was considered by the CDWP in its meeting at a cost of Rs16.696 billion (without FEC) on 50:50 cost sharing basis between Federal and Provincial Government subject to cost rationalization.

Ministry of Planning, Development and Special Initiatives submitted the proposals/ submission for consideration and approval of the ECNEC as follows: (i) only balance works will be awarded on updated CSR basis;(ii) the executing agency will rationalize the consultancy cost based on percentage of project cost or extended implementation period of the project.

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They will submit the revised cost before issuance of Authorization. Deputy Chairman, Planning Commission may be authorized to approve the rationalized cost; (iii) the executing agency will be responsible for validity of design and construction methodology. They also will ensure completion of project within a time period of five years from issuance of authorization;(iv) releases from PSDP will be linked with the releases of provincial ADP, O&M and M&R plan of the province;(v) proponents will submit a roadmap to CDWP for M&R budget of this project and other projects within a period of three months and ;(vi) guidelines pertaining to contract agreement will be followed in letter and spirit.

During the ensuing discussion, the forum observed that the Federal Government had given it share to the tune of Rs 4.971 billion up to June 30, 2020, whereas the Government of KP released only Rs 237.707 million. Therefore, while the project is to be shared between the Federal and Provincial Government @ 50:50 cost sharing basis any further release by the Federal Government should be subject to the release of equal share by the Provincial Government. The ECNEC also observed that the Government of KP may also fix responsibility for delay in the project.

The Ministry of Water Resources stated that an inquiry against the Consultants responsible for poor design of the project should be conducted. Secondly, in view of the fact that there is no FEC for tunnel and pumping equipment, it will be difficult to attract foreign bidders for the project.

Copyright Business Recorder, 2021