Federal govt removes 36 schemes of Rs 51 bn, including Sukkur barrage from its ADP: Murad

KARACHI: Sindh Chief Minister Syed Murad Ali Shah has said that the federal government has deleted 36 important schemes of Sindh from its next development programme, PSDP -2019-120 though most of them were foreign aided projects.

“This is an injustice with the people of Sindh and this would further develop sense deprivation and isolation among the people of the province.”

This he said while presiding over a preparatory meeting of National Economic Council (NEC) here at the CM House. The NEC meeting is scheduled to be held in Islamabad on Wednesday. Sindh Chief Minister Syed Murad Ali Shah and Sindh’s representative Nisar Ahmed Khuhro will attend the meeting.

The chief minister said that the estimated cost of the entire PSDP portfolio, both the existing and new, was Rs8 trillion in which Sindh based schemes cost came to Rs 540 billion. “It means Sindh has been given only seven percent share in the PSDP,” he said and termed it an injustice with the people of this province.

Mr Shah also said that the federal government has about 36 schemes having a cost of over Rs.51 billion, including Foreign Aid component pertaining to Sindh in Water, Roads and other sectors were arbitrarily deleted from the PSDP 2018-19 after its Revision in Sept 2018.

The schemes deleted from the PSDP 2018-19 include Rehabilitation and Modernization of Sukkur Barrage. It is a World Bank funded project in which 80 percent funds would be finance by World Bank and Sindh government would 10 percent and the federal government has borne only 10 share in 2019-20.

The other deleted schemes are Construction of a new bridges with approach roads over River Indus between Sukkur – Rohri. This was announced by then prime minister Nawaz Sharif during his visit to Sukkur. Construction of a 88 km Mirpurkhas - Umerkot Section; Construction of Southern Bypass Hyderabad (ADB); Rehabilitation of existing 200 km Carriage way from Sehwan-Ratodero; Lining of K.B. Feeder Upper Canal for Water Supply to Karachi City- its cost would be share by federal and provincial governments on the basis of 50 into 50. Construction of Feeder Canal to Manchar Lake to Eradicate Contamination and it is also on 50:50 sharing basis.

The chief minister said that the Jamshoro to Sehwan Section Road is a classic case of mismanagement. It has three roads. “The Sindh government has provided Rs.7 billion to get this important road completed, but unfortunately, there is no progress on it,” he said and added he would request the federal government to instruct the NHA to complete it or return Sindh government’s Rs7bn so that the provincial government could complete it from it on its own.

Murad Ali Shah also said that the federal government has drastically reduced the overall allocation of schemes reflected in the Finance Division portfolio, which were being executed by the provincial governments.

He said that the Sindh government’s portfolio has been curtailed and many schemes which were on-going and yet to be completed have been deleted. “There are now only five on-going schemes with an estimated cost of Rs. 23.9 billion against which only Rs.1.77 billion have been allocated for next financial year, 2019-20,” he lamented.

Mr Shah pointed out that the overall Finance Division’s allocation for PSDP 2019-20 was Rs36.61 billion. The KPK/FTA has been given 75 percent funds, Balochistan 15 percent, Sindh only 4.85 percent and four percent Punjab.

Mr Shah said that some Schemes being executed by Sindh government have been deleted from PSDP 2019-20 are as follows:

S-III: S-III Project was revised by ECNEC from Rs7.982 billion to Rs36.117 on Feb 7, 2018. The cost of project was originally shared by Sindh government and federal government on 50:50 basis but the Federal Government did not agree to share 50 percent of the revised cost. The total expenditure against the federal share till June 2018 is Rs. 3.129 billion. The Federal government allocated the balance share of original cost in PSDP 2018-19 which is Rs. 862.00 million and released only Rs. 344 million. An amount of Rs. 517 million is also pending against original federal government’s committed share. This has been deleted from PSDP.

Construction Roads in Hyderabad Distt: The project was cleared by CDWP on March 18, 2010. The Scheme has been completed through Bridge Financing by Sindh government in 2011-12. An amount of Rs175.864 million is pending towards federal government. The Scheme has been deleted from PSDP 2019-20

Water Supply Scheme SBA: An amount of Rs. 299.71 is pending against federal government’s share.

Lining of Minors: This was for lining of 109 selected channels of 860 miles at an approved cost of Rs.13.828 billion. Rs. 8.069 billion expenditure stands incurred till June 2018. There is throw-forward of Rs. 5.032 billion and scheme has been deleted from PSDP 2019-20.

Rehabilitation of Irrigation: Rehabilitation of Irrigation & Drainage System of Sindh was approved at Rs. 16.795 billion. An amount of Rs. 13.386 billion has been incurred till April 30, 2019 leaving a throw-forward of Rs. 3.409 billion. This scheme stands deleted from PSDP.

The chief minister said that approximately over Rs. 8 billion liability has been left out against committed projects with implications on these schemes. Therefore, the federal government should release the amount to the provincial government.

Mr Shah said that NHA Executed Schemes (including CPEC) has size of 78 projects with an estimated cost of Rs2 trillion against which Rs 156 billion have been allocated. He added that over all Sindh’s portfolio under Communications (NHA) comprised of six schemes with a total estimated cost of Rs74 billion the allocation is only Rs7.7 billion for 2019-20. The overall share of this portfolio comes to 4.9 percent of total NHA portfolio. Punjab has 21 schemes and their share comes to 34 percent, KPK’s share comes to 21 percent and Balochistan’s share is 23 percent.

Water Sector (Executed by WAPDA): The total number of schemes under Water Sector is 97 with a total Estimated cost of Rs. 2.34 trillion. The Allocation for 2019-20 is Rs. 84.7 billion

The chief minister said that Sindh’s overall portfolio in Water Sector has a total cost of Rs. 175.59 billion, having an allocation of Rs. 7.02 billion for nine schemes under PSDP 2019-20. “In terms of percentage of total cost of Water Sector, it comes to seven percent of the total Water Sector cost of Rs. 2.3 trillion,” he said.

Mr Shah said that Sindh’s portfolio with total cost of Rs. 175 billion was also because of the two major schemes of RBOD II and I; which together have an estimated cost of Rs. 54.56 billion and Rs. 17.5 billion. “These projects in principle should be considered “National Projects portfolio”, as these schemes are for carrying affluent from Balochistan and leave adverse environmental impact since it passes across the province,” he said.

The RBOD II was revised on July 26, 2017 on the orders of the Supreme Court of Pakistan at the total Cost of Rs.61.985 billion with completion date of June, 2020. The share of Federal Government is Rs.54.985 billion and the estimated expenditure till June, 2019 would be Rs.37.017 billion leaving a throw-forward of Rs.17.968 billion.

Sindh Chief Minister Syed Murad Ali Shah said that 2019-20 would be last year for completion of RBOD-II, therefore; the federal government was required to provide Rs.17.968 billion in order to complete the project by June, 2020. He pointed out that the Federal Government has allocated Rs. 1.5 billion for 2019-20 against a throw forward of Rs.17.968 billion. “The share of Sindh government is Rs.7 billion, out of which Rs.3 billion stands utilized and Rs.4 billion are proposed to be allocated in ADP 2019-20,” he said.

The chief minister said that Darawat Dam costed at Rs. 11.7 billion against which federal government has earmarked Rs. 600 million against a throw forward of Rs. 3.02 billion

Mr Shah pointed out that the WAPDA gave Re- revision of Rs. 46 billion for the Nai Gaj Dam being constructed since 2009. He added that it was a federally funded project where Sindh government commitment was only Rs.1.88 billion. “The ECNEC suggested Sindh government should provide 50 percent sharing since the first revision which is an injustice with the people of the province,” he

Small Dams: Construction of Small Storage Dams, Delay Action Dams, Retention Weirs & ISSO Barriers in Sindh (Multiple Districts). The scheme was approved for Rs. 12.211 billion. An amount of Rs. 5.731 billion have been spent till April 30, 2019 leaving a throw-forward of Rs. 6.479 billion. The Federal Government has provided Rs. 600 million for 2019-20 against a throw forward of Rs. 6.479 billion.

Makhi Farash: The Makhi Farash Link Canal Project for Water Supply to Thar Coal is an important scheme. The scheme was approved at a cost of Rs. 10.612 billion on 50:50 cost sharing basis. An amount of Rs. 2.495 billion have been incurred till April 30, 2019 leaving a throw-forward of Rs. 3.842 billion against federal share. Federal Government has allocated Rs. 500 million against the scheme in PSDP 2019-20.