The capital cost of Nai Gaj Dam in Dadu district of Sindh has gone up manifold from Rs16.924 billion in 2009 to Rs41.791 billion in 2019, a working paper of the project indicated. Federal government is mainly financing the project with sharing 96 percent of its cost while Sindh government will contribute four percent in this project on account of land acquisition, resettlement, security, etc.
The Supreme Court (SC) also took up the issue of the said dam in recent weeks and immensely annoyed over least interested federal government for delay in construction of 194 ft dam, which would store 0.16 MAF of flood/rainwater and generate 4.2 MGW of electricity.
The original PC-1 of the project was prepared in 2009 when its cost was estimated at Rs16.924 billion. The revised PC-1 in 2012 put the cost of the project at Rs26.236 billion and the 2nd revised PC-1 further jacked up the cost to Rs47.732 billion.
However, Ministry of Planning, Development & Reforms has rationalised the cost of the project from Rs47.732 billion to Rs41.791 billion, keeping in view the project's needs and resource constraint. Now, it is awaiting the approval of ECNEC, expected to be held next week.
The June 30, 2021 is the anticipated date of this project's completion. Originally, the foreign funding of Rs414 million was also counted for the project but the revised PC-1 showed that the foreign institution withdrew that allocation.
In compliance of CDWP decision, Sindh government has furnished it reply that suggested that command area of Nai Gaj Dam is partially developed and under-cultivation. Furthermore, the obligation of command area development lies on beneficiaries. However, no firm timeline has been provided by the provincial government on acquisition of this area.
In response to Central Development Working Party (CDWP) decision, WAPDA has furnished replies to all observations raised in the working paper of CDWP. The WAPDA submitted that "the scope has been thoroughly reviewed and agreed with the Government of Sindh, whereas the cost of the project has been prepared by the Project Consultant, certificate regarding authenticity of quantities and rates also furnished by the engineer and the same is the part of 2nd revised PC-1. Most of the concerns have been addressed. However, those which are still outstanding need to be addressed."
On the other hand, Ministry of Water Resources has endorsed changes in design and proposed constituting a committee to enquire cost overrun of the project as well as the matter of submission of fake bank guarantee by the contractor, if deemed appropriate.