Snags hit $236m ADB-funded road project

KARACHI - The Asian Development Bank assisted "Sindh Road Sector Development Programme" is unlikely to be completed on scheduled time due to a number of problems that have dampened the pace of development, officials sources told The Nation. Total cost of the project is 236 million dollars (Rs14.419 billion). The share of ADB is $150 million dollars (Rs9.165 billion), OPEC (Oil Producing and Exporting Countries) share is $15 million dollars (Rs916 million) while remaining $71 million dollars (Rs4.338 billion) is paid by the Sindh government. Sources said the closing period of the road development project was June 30 of current FY2008-09, but according to the concerned officials, it would not be completed on scheduled time given by donor-ADB. Initially, the closing date of the loan was FY2007-08 but this project loan was extended to this FY2008-09 as it already delayed. Through this project, the provincial government will improve key sections of the provincial highways network and rehabilitate rural access as the rural areas of the Sindh province have no such sufficient communication facilities. Under the project, the Sindh government has to construct two Highways-Thatta to Sijawal, and Kunb, Khairpur to Nawabshah, Sakrand and construction of 1200 kilometers roads in various areas of the province which aims to reduce rural poverty and increase access for rural population to markets, official said. The loan agreement between federal/Sindh government and the ADB was signed in Manila on 1st February 2002 while the loan had been declared effective from 25th September, 2002, official said. Though, loan was passed much earlier in 2002, but the selection of consultants was delayed for about two years, officials sources privy to the project disclosed and informed that the ADB given the approval of the consultants of project very late in third quarter of 2004. The consultants started their job from November 2004 while physical work on the project was started on May 2005, official said and pointed out that the appointments of consultants was delayed by the donor as it rejected various proposals which further delayed the project. Out of total cost of the project, merely 3.152 billion had been spent till last fiscal, official confirmed. According to official, the above mentioned two Highways have been successfully completed so far, while the length of roads has been reduced to 800 kilometers from original length of 1200 kilometers owing to delay in the release of funds by the ADB. A senior official of the Planning and Development Department of Sindh told The Nation that ADB was responsible for delay in the completion of the project as it took two years in appointment of consultants. Thus the ADB wasted 42 per cent time of the total period of the project in appointing the consultants. Since the starts of project, the OPEC and ADB released funds very late which led to further delay in completion of the project time, official said, adding that ADB stopped all proceedings, approvals, payments during December 2006 to 2007 as a result the contractors abandoned work on the project.

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