CDWP clears Rs444 bn revised cost of Neelum-Jhelum project

ISLAMABAD: The Central Development Working Party (CDWP) on Thursday cleared a revised cost of 969 MW Neelum-Jhelum Hydropower project (NJHP) with estimated cost of Rs444 billion against initially approved cost of just Rs84 billion.
Exactly, the NJHP cost was overrun by 422 percent as it escalated to Rs444.034 billion now against initially approved cost of Rs84.55 billion in year 2002.
“Although, different excuses were presented such as changes in design and other components resulted into cost overrun but it exposes capability of planning managers to evaluate project cost in a professional manner. So there is need to fix responsibility against those who are responsible for mammoth increase of 422 percent in the cost of NJHP,” one top official conceded while talking to The News here on Thursday.
When asked about the reason that why the revised cost was increased from Rs414 billion to Rs444 billion in the PC-1, they said that the duty on imported machinery was not waived by the FBR and cost escalation went up in the wake of recent depreciation of rupee against dollar so the cost was again scaled up at final stages. Now it was expected that this project would be completed by end of 2016.
According to statement issued by the Planning Commission on Thursday, the Central Development Working Party (CDWP) has approved 20 development projects of worth Rs512 billion while three out of these were referred to the Executive Committee of the National Economic Council (ECNEC) .
The CDWP meeting was held at the Planning Commission with Federal Minister Planning, Development and Reform Prof Ahsan Iqbal in chair. Senior officials of concerned ministries, and representatives of the sponsoring agencies and provincial governments attended the meeting.
The approved projects were mainly related to energy, education, transport and communication, railway, industry & commerce, physical planning & housing, and water resource.
Three projects recommended to the ECNEC include Advance Metering Infrastructure Project in Rawalpindi Circle and New Customer Information and Billing System for the entire company in Islamabad Electric Supply Company (Iesco) worth Rs18,546 million having the FEC Rs8,753 million, Advance Metering Infrastructure Project in second and fifth circle and new customer information and billing the entire company in Lesco worth Rs30,597 million with FEC Rs13,016 million and Neelum-Jhelum Hydroelectric Project having a total cost of Rs444,034 million.
The projects approved include Capacity Building of Teachers Training Institutions & Training of Elementary Schools Teachers in Balochistan at a cost of Rs146.37 million. Technical Support Unit of Pakistan Italian Debt Swap Agreement will cost Rs108.4 million. Establishment of Technology Development Fund for HEC Scholars Returning after completion of PhD to introduce new technologies will cost Rs3,792.532 million. Establishment of University at Sibi Balochistan (Part-I) will cost R.584.363 million having Rs.190.617 million.
Provision of Necessary Operational Facilities for King Abdullah Campus, University of Azad Jammu & Kashmir Muzzafarbad will cost Rs574.139 million. Subsidy to Scholars abroad under cultural exchange programme HEC (Phase-II will cost Rs709.218 million with Rs612 million FEC. Development of Fatima Jinnah Women University Rawalpindi Campus II will cost Rs983.449 million. Provision of Higher Education Opportunities for Students of Balochistan and Fata (Phase-II) will cost Rs2994.272 million.
Construction of black top road from Matkund to Kalkani Adda District Dera Bugti will cost Rs144.490 million. Construction of structure works of Sohrain Road on Rakhni Baiker Road District Dera Bugti will cost Rs28.683 million. Conversion of 260 passenger coaches from 110 AC/24 DC Volts to 220 Volts will cost Rs400 million with Rs113.090 FEC.
Protecting irrigation system near head regulatory Bakaini, Area of Bait Daryai and Gabbar Arian from Hectic Erosive Action of Indus River will cost Rs532.440 million. National Curriculum Council Secretariat worth Rs100 million and three other projects were also approved in CDWP.