CDWP approves 42 projects worth Rs 237.7 bn

Islamabad: The Central Development Working Party (CDWP) approved 42 new development projects costing Rs 237.7 billion and revised 9 schemes costing Rs 25 billion. The total foreign assistance for the projects has been estimated at Rs 91.2 billion.

The CDWP met here with Deputy Chairman Planning Commission (PC) Salman Faruqui in the chair. This was the first meeting of the CDWP of the current financial year. This was also the first meeting of the body after the PPP came into power in March, 2008. Briefing newsmen spokesman PC Asif Sheikh said that cost of each of the 22 projects is over Rs 500 million. The total cost of the projects is Rs 255.5 billion and they will be placed before Executive Committee of the National Economic Council (Ecnec) for approval.

He said that 46 projects costing Rs 218.4 billion will be financed by the Federal Government. Of 18 projects located in Punjab, 13 projects are under Multan Development Package for which Government of the Punjab will contribute Rs 500 million.

One project located at Punjab titled 'Construction of Cherah Dam Project' costing Rs 5.31 billion will be financed by Government of the Punjab. Two hydro power projects located in AJK costing Rs 6.7 billion will be financed on 30:70 cost sharing basis between government of AJK and federal government. The federal government will provide Rs 4.72 billion from PSDP.

Of 51 projects, 9 projects have been revised. Their cost has increased from Rs 14.0 billion to Rs 24.7 billion, he said. Allocation of Rs 5.8 billion exists in the PSDP 2008-09 against the 22 projects.

'Establishment of inland Container terminal Dry port near Sher Shah Railway Station Multan' will be financed through Public Private Partnership. Ministry of railways will give the land free of cost. One project 'Deepening & Widening of Port Qasim Navigation Channel' costing Rs 8.1 billion will be financed by the PQA from its own resources.

The CDWP also conceptually cleared the projects titled 'Balochistan Local Service Delivery and Government Project', 'Rehabilitation of the Medium Wave Radio Broadcasting Network for the enhancement of Education', 'Health and Enlightenment in NWFP, FATA and Balochistan in Islamic Republic of Pakistan' and 'Establishment of National Road Safety Secretariat/Authority'.

The CDWP also approved 'Revival of Karachi Circular Railways as Modern Commuter System' costing Rs 52.3 billion. A foreign assistance of Rs 39.2 billion is expected for the project. Asif Sheikh said that federal government would not bear the operational losses after completion of the project in five years.

A total of 32 development projects were approved in the infrastructure sector costing Rs 238 billion that also include foreign exchange component (FEC) of Rs 81.26 billion. He said that 'Land Acquisition and Resettlement Plan of Basha Dam' costing Rs 116.7 billion has been approved. According to him 99 per cent area to be affected by the dam is in the Northern Areas (NAs). The plan, which was approved by the CDWP, was framed by NA administration. Total of five projects costing Rs 123.88 billion have been approved in the energy sub sector.

In the water resources, four projects valuing Rs 8.05 billion have been approved. The PAEC plan of establishing two power generation units (C3 and C4) were dropped from the agenda. In social sector, 18 projects costing Rs 24.37 billion were approved in social sector.

The important schemes in the transport and communication are Rehabilitation of Larkana-Naudero-Lakhi Road costing Rs 1.92 billion and Dualization/Rehabilitation of Larkana Moenjodaro valuing Rs 1.93 billion. Of the 18 projects for Punjab, 14 projects costing Rs 4.2 billion would be launched under the Multan Package, said Asif Sheikh. He said that Punjab government will also provide Rs 500 million for the package.