Senate Committee reviews progress on key infrastructure projects & calls for enhanced accountability

ISLAMABAD, Sep 12 (SABAH): The meeting of the Senate Standing Committee on Economic Affairs chaired by Senator Saifullah Abro convened on Thursday at Parliament House.

The meeting began with a detailed update on the implementation of recommendations made by the Committee in its previous meetings. The Additional Secretary of Economic Affairs Division provided an overview of ongoing and completed projects in the communications sector, covering national highways, motorways, and road infrastructure. These projects, carried out under multilateral and bilateral agreements, and with support from UN agencies, included information on proposals, the tendering process, current progress, interest paid by the federal government or departments, and other relevant details dating back to 2002.

The Committee also reviewed a summary of ongoing and completed communication sector projects, including 16 projects funded by the Asian Development Bank (ADB) with disbursements of 1,331.04, and 5 projects funded by the World Bank, with disbursements of 1,754. Chairman Committee Senator Saifullah Abro suggested that adding tender process updates to date to the report would provide greater clarity. The meeting further discussed projects from bilateral development partners, such as 4 ongoing projects with Korea, disbursing 1.77, and one project with the Saudi Fund for Development (SFD) which has yet to disburse any funds. Similarly, completed projects from the Saudi Fund, China, Japan, the Kuwait Fund, and USAID were also reviewed.

The Joint Secretary, M/o Communications also provided updates on ongoing transport sector projects, both completed and in progress. He informed that some projects are facing land acquisition issues, which are currently being addressed. Senator Saifullah Abro suggested the Ministry for a clear breakdown and details of the project costs. Senator Kamran Murtaza also suggested the department to propose amendments in the Land Acquisition Act and highlight the issues with Minister for Law and Justice accordingly.

Senator Saifullah Abro also raised queries regarding the ongoing transport sector projects, seeking further clarification on their progress. He emphasized that work should proceed on the portions of projects where available resources permit. He remarked that if projects are assigned to ineligible companies, it could hinder the timely completion of work, specifically citing the example of the Qila Saifullah-Zhob (ICB-3B) N-50 Highway.

Senator Saifullah Abro acknowledged that while the Ministry has the authority to proceed, it also holds the power to impose certain hurdles if necessary. The Chairman, NHA assured the Committee that strict monitoring of projects will be done to ensure transparency. The Chairman Committee commented that the NHA briefing was incomplete and suggested imposing penalties on the contractors’ non-completion of projects and recommended EAD and all concerned provide a comprehensive update on the under-consideration projects in the next meeting. He expressed confidence that the department, as its custodian, would ensure proper oversight. Referring to his earlier remarks, he reiterated that, as with previous projects such as the Petaro to Sehwan, the current efforts of other projects should not be considered complete until the work has been fully executed.

Chairman Saifullah Abro further commented that the start and completion dates for each component had to be specified, and penalties needed to be included to ensure accountability. The contractors were to be directed to promptly complete the remaining portions.

He added that the Chinese contractors had already completed their section, while work on two other portions is still ongoing. However, there are faults in the work carried out by the contractors, particularly in the complex structural aspects of the road. He further commented that in his view, permission should have been sought from the Railway Department, and the contractors should have been held accountable from the beginning. Doing so in future projects would save considerable time. Typically, 90 percent of contractors experienced delays at various stages, but these delays could have been avoided. Regarding the third bridge near Lucky Shah Saddar, filing could not proceed in that area, which was causing additional delays.

Moreover, the Peshawar Torkhum Expressway was discussed in detail by the committee members. The Ministry provided comprehensive information on the Khyber Pass Economic Corridor (KPEC) and its current status. It was informed that the submission date for the request for proposal (RFP) bids had been extended to 26th June, 2024.

Furthermore, in the discussions, concerns were raised regarding the country’s reliance on the IMF despite the continued need for loans.  Additionally, it was mentioned that Members of the National Assembly receive allocations of 500 million rupees, yet there is limited accountability or inquiry into how these funds are utilized. Moreover, it was also observed that work within the Public Works Department (PWD) is not progressing as expected, with allocated funds being diverted to other areas.

In his closing remarks, Senator Saifullah Abro recommended M/o Communications to provide detailed information on all ongoing and completed projects from 2002 to June, 2024 including mobilization advance payment, bid securities, its verification from the concerned Bank (Head Office) and also endorsed by State Bank of Pakistan. The Committee unanimously decided to defer the agenda item to further discussion in the next Committee meeting.

In attendance were Senator Kamran Murtaza, and Senator Faisal Ali Subzwari, the Secretary of Economic Affairs alongside senior officials from the Ministry of Economic Affairs.