Bhasha, Tarbela projects: Minister concerned at manifold increase in projects’ costs
ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal expressed serious concern and strong resentment over a Rs 5 billion cost escalation caused by delays in the PC-I approval of the Diamer Bhasha Dam Project and weak project management.
The minister also expressed resentment over the increase in originally estimated expenditures, which have risen from Rs 82 billion to Rs 140 billion for the Tarbela 5th Extension Hydropower Project.
The minister expressed these concerns while chairing the Central Development Working Party (CDWP) meeting at P-Block of the Ministry of Planning on Thursday and directed the new Chairman of WAPDA to ensure that the project is managed in a professional manner.
The minister further directed that all observations regarding mismanagement, weak due diligence, and the performance of contractors and consultants be formally placed before the Executive Committee of the National Economic Council (ECNEC) by an inquiry committee headed by the Member of Infrastructure.
He directed the committee to thoroughly examine these issues, review the observations raised during the meeting, and submit a comprehensive report to ECNEC.
He also directed the authorities concerned to develop a robust institutional framework to prevent such shortcomings in future projects, emphasizing that organisations like Wapda must uphold the highest standards of professionalism, accountability, and project governance.
The CDWP discussed and cleared the revised PC-I at a cost of Rs 485.006 billion of the Diamer Bhasha Dam Project, Part with reflection of helicopter cost, related to the Ministry of Water Resources, and referred it to the ECNEC for further consideration and final approval.
Reflection of Helicopter Cost: “The total project cost includes a portion allocated for helicopter-based operations used during construction or monitoring of the dam, aerial surveys of the dam site, transportation of engineers, officials, or equipment, etc.”
The CDWP also cleared another revised project related to the Ministry of Water Resources, namely the “Tarbela 5th Extension Hydropower Project,” for Rs 316.411720 billion, and referred it to the ECNEC for further consideration and final approval.
While discussing the Tarbela 5th Extension Hydropower Project, the minister expressed serious concerns over the project’s management, transparency, and oversight mechanisms. He observed that the professional capability of the concerned staff appeared questionable, as the Ministry of Water Resources had also pointed out shortcomings in its inquiry report.
The minister, while discussing the Diamer-Bhasha Dam project, expressed serious concern that the revised PC-I of the project had not been submitted for the last six years, despite the cost of the project having increased manifold from the original approved cost of Rs 480 billion in 2018, which shows poor project management capacity.
He directed that the new Chairman of Wapda should ensure that the project is managed in a professional manner.
He further observed that since 2020, concerns had repeatedly been raised by him during Standing Committee on Planning’s meetings regarding the escalating cost of the project. However, despite the passage of several years, WAPDA had still not submitted the revised PC-I. He emphasized that this reservation should be made part of the official record.
The CDWP allowed revision of PC-I related to helicopter purchase purely on security grounds, with the direction that the revised PC-I for the dam component should be submitted without further delay.
The minister questioned whether a holistic, integrated, and professional project design and management system for mega projects existed in WAPDA. He said that WAPDA should undertake necessary steps to improve its project management capacity.
Regarding the Tarbela 5th Extension Hydropower Project, the minister questioned the process through which a local consultant with a dubious record was engaged for the project, stating that an international consultant had initially been hired and subsequently replaced by a local company in a non-transparent manner.
He directed the concerned authorities to share the inquiry report with the Ministry for detailed review.