Karachi Fish Harbour Rehabilitation project stalled as costs tripled over a decade

KARACHI: Despite the third revision of the project ‘Rehabilitation and Renovation of Karachi Fish Harbour’ from Rs. 1.43 billion to Rs. 3.35 billion and the passage of over eleven years, the project still stands incomplete.

Disappointed with the delay, mismanagements, and the possible risk of heavy loss of public money in the said project, the Sindh Planning and Development (P&D) has directed the Sindh Works and Services and Livestock and Fisheries departments to explain their positions.

The Sindh P&D Department in a letter to the Secretary of Sindh Works and Services Department and Sindh Livestock and Fisheries departments showed its displeasure that despite the lapse of 11 years, the core objectives of the scheme are yet to be achieved, despite the incursion of over Rs. 1.00 billion.

According to the official record the ‘Rehabilitation and renovation of Karachi Fish Harbor’ was initiated on July 26, 2013, by the Sindh government when the European Union (EU) imposed a ban on the export of seafood from Pakistan to 28 countries and the EU also delisted 11 Pakistani firms from exporting seafood, resulting in loss of millions of dollars to the national exchequer. The ban was imposed due to poor hygienic conditions, the dumping of industrial and municipal waste into the Arabian Sea.

To meet the international standards for exports from the fisheries sector, this development project was approved initially at a total cost of Rs 1.43 billion on July 26, 2013, revised to Rs 1.61 billion on November 02, 2016, and then again re-revised to Rs 1.61 billion on March 21, 2018; and now it has been revised for the third time for Rs. 3.35 billion.

The supply of water to the Fish Harbour, installation of modern drainage system, installation of CCTV, modern electrification, construction of check posts, construction of iron bridges, and floating jetties were included in the new scheme.

Sindh P&D in its letter stated: According to the details available in the PC-I submitted by the sponsoring agency the Sindh Livestock and Fisheries Department for the third revision at Rs. 3.35 billion, which is around 107% over and above the approved revised cost of the scheme i.e. Rs. 1.616 billion and over 135% above the original cost of PC-I. Moreover, the work began in 2018-2019, and just 60% of civil works have been completed so far.â€

The letter added: “The cost of the sewerage network system in the latest revision is now proposed at the cost of Rs. 504.874 million, which is 80% above the revised approved cost of Rs 279.823 million. For the external electric work component, the proposed cost is Rs. 1.422 billion as against Rs. 289.930m of approved cost some 500% more than the approved cost. The cost of steel bridges and rehabilitation of floating pontoons is proposed at 200% above the approved cost in the revised PC-I.â€

As per letter: “The Works and Services Department of Sindh made unauthorized changes to a project. This included significantly increasing the cost of demolition works for toilets and offices, and issuing work orders for electrical components at much higher costs than initially approved, without following proper procedures. In addition to the work orders for the electrical works mentioned earlier, another work order totalling Rs. 61.980m was issued separately for the Electrical Works without following SPPRA rules and guidelines. It is concerning to note that an amount of Rs. 349.968 million, nearly 50% of the awarded contract amount, was released to the contractor in advance before any work was executed on-site. Additionally, the contractor has incurred an additional liability of Rs. 577.839m.â€

It was observed in the letter that various electrical items were executed at significantly higher rates. For instance, the installation of 3 core 95sq mm electrical wire cost Rs. 96,000 per meter instead of the approved rate of Rs. 6,670, despite the market price being below Rs. 10,000. Similarly, the installation of 4 core 120sq mm electrical wire costs Rs. 10,750 per running meter instead of the approved rate of Rs. 6,375, while the market price is around Rs. 25,000 per running meter. Additionally, a 24-inch LED TV was procured for Rs. 249,000 instead of the market price below Rs. 35,000.

Moreover, the work order for Part-I Package A (civil works) was awarded to a company for Rs. 563.916m after completing the tendering process in June 2018. Despite work commencing in February 2019 with a completion period of 15 months, the work remains unfinished. The same company was also awarded the work for Part III “Sewerage Treatment Plant†in November 2022 through an agreement without following a competitive bidding process.

According to the PC-1 (Re-revised) approved in March 2018, the estimated cost for Part III of the scheme was Rs. 185.00 million. However, the Sindh Works and Services Department awarded the contract at a much higher cost of Rs. 297.774m, representing a 61% increase. A new PC-I (Third Revision) has been proposed at an even higher cost of Rs. 420.712m.