Due to delay in execution, slow progress on projects, and cost overrun, the Planning Commission has recommended barring the National Highway Authority (NHA) from submitting new projects and has directed it to bring its business plan as its throw forward has reached Rs. 907 billion.
The current pace of approving new projects of the National Highway Authority is not sustainable, and the ongoing or new schemes cannot be completed on time with the available funding, an official source told ProPakistani.
The Transport and Communication section of the Planning Commission has noted that the throw forward of the National Highway Authority project has reached Rs. 907 billion against the allocation of only Rs. 113.8 billion and asked the authority to stop submitting new projects, the source said. It means that with the current allocation of Rs. 113.8 billion it will take around nine years for NHA to complete its ongoing projects, the source added.
According to the official documents, NHA has a total of 62 projects (Ongoing plus new excl. VGF BOT) in PSDP 2021-22 with a throw forward till 30 June 2021 of Rs. 907 billion and allocation in PSDP 2021-22 of Rs. 113.8 billion. Out of a total of 62 projects, 15 are new projects with a throw forward of Rs. 309 billion and allocation of Rs. 14.4 billion, the documents reveal.
The construction activity for most of the new projects has not started yet. The allocation of Rs. 113.8 billion has been thinly distributed amongst NHA projects, which will result in time and cost overrun. NHA should provide details of the projects, which are not included in the PSDP 2021-22, but the financial liabilities are pending, the planning commission asked.
This issue is a result of new projects included in the NHA’s portfolio each year. In view of the above, the T&C section recommends that NHA should prepare a proper business plan and should stop submitting new PC-Is.