Azerbaijan to invest $2b in Pakistan to improve roads infrastructure: NHA head
ISLAMABAD – Azerbaijan will invest $2 billion in Pakistan to improve roads infrastructure while Islamic Development Bank has agreed to make investment for the first two sections of Sukkur-Hyderabad (M-6) Motorway. This was disclosed by Chairman National Highway Authority while briefing the Senate Standing Committee on Planning, Development and Special Initiatives.
The committee, which met under chairmanship of Qara Al-Ain Marri, also expressed serious concerns regarding the substandard quality of dams’ construction in Balochistan. To counter such concerns, the chairperson proposed to form a Fact-Finding Committee to assess the quality of federally funded projects, ensuring that the government’s financial contributions result in sustainable and durable infrastructure. The chairperson emphasized over the need that if the federal government is funding any of the projects then it the responsibility of federal government to look after the quality of the work. Secretary Planning apprised that the Monitoring Wing within the Ministry will scrutinize the quality of these projects. Secretary, Ministry of Planning, Development, and SpecialInitiatives along with the Joint Secretary, Ministry of Finance briefed the Senate Standing Committee on Planning, Development and Special Initiatives about the disbursement of funds for Public Sector Development Program (PSDP) projects in Balochistan for the fiscal year 2024-25.
The briefing covered the allocation status, fund releases, and the progress of ongoing projects. During the briefing, Balochistan government officials revealed that the projects initiated in the province face unnecessary delays in release of funds that results in revision of projects cost. The Balochistan government representatives urged for timely provision of funds.
The ministry of finance further informed that they have received total 30 projects’ proposals under PSDP 2024-25. While explaining the procedure of the distribution of funds, the officials revealed that Rs.1.2 billion has already been released for the prioritized projects Balochistan in third quarter, while an additional amount of Rs.3.4 billion is expected to be released within the next two to three weeks.
During the meeting, Balochistan officials highlighted a specific case (PSDP-254) of Gwadar Development Authority Business Plan, which was approved by ECNEC in 2010 with an estimated cost of Rs25 billion, against which the amount of Rs12 billion was released and the project is delayed due to non-provision of necessary funds. The chairperson Committee directed relevant authorities to present a detailed plan, expenditure details and remaining funds in the next meeting of said project. Additionally, the committee called for the release of funds for all remaining PSDP projects of Balochistan and requested to present the copies of the NEC’s decisions for reference on sharing of financial burden of projects between the federal government and the provinces. While briefing, Chairman (NHA) updated the committee about the development progress of Sukkur-Hyderabad (M-6) and Karachi-Hyderabad (M-9) Motorway projects told that the government is currently undertaking extensive road infrastructure projects spanning 306 kilometers (KM). The Sukkur-Hyderabad (M-6) contract is top priority project which has been divided into 5 sections as per the feasibility report from the international consultants. He further informed the committee that two sections of M-6 project will be initiated on PPP mode whereas the government is also looking to secure investments on the remaining 3 sections as these sections require substantial funds for execution and completion.
Islamic Development Bank has agreed for investment in the first two sections of project, chairman NHA maintained. The bank’s fact-finding team visited in February, while the appraisal mission will come in April, he added. It will be known upon the arrival of the bank’s appraisal mission how much investment the bank will provide. Similarly, he said that Azerbaijan will invest $2 billion in Pakistan. The construction cost of M6 is $1.2 billion, he said and added that investment is received from the Islamic Development Bank for M6, Azerbaijan’s investment will be used for M10. Azerbaijan’s investment of $2 billion in Pakistan will be in the form of a long-term deposit, the chairman said. Azerbaijan can also invest in M6 project in collaboration with Islamic Development Bank; he further informed. This whole situation will become clear in April, he added. The chairperson Committee recommended to follow-up on these matters in third week of April to assess further progress.
The Committee also discussed the issue of road fencing theft, particularly along motorways. The NHA chairman acknowledged the theft problem and stated that most of the stolen fences have been reinstalled. He further informed that complaints have been lodged against the culprits and the matter is currently under trail. A significant decrease in theft crimes noticed after the action taken by the Motorway Police in the region of Dera Ismail Khan. The Committee members also expressed serious concerns over continuous construction activities on M-5 for the past decade, stating that the road has never been free from ongoing work. Similar concerns were raised regarding the Hala-Matiari section, where construction is always in progress. The NHA officials assured Committee that detailed reports on these projects will be presented in next meeting.