CDWP okays 8 uplift projects worth Rs144.3bn

ISLAMABAD: The Central Development Working Party (CDWP) has approved eight development projects at an estimated cost of Rs 144.3 billion including Rs 52 billion for the establishment of Nawaz Sharif Institute of Cancer Treatment & Research, Lahore, despite warning that this project does not incorporate foreign exchange component (FEC).

For the construction of the cancer hospital, it was told in the forum that the PC-1 was envisaged to be constructed for Rs 52 billion without FEC component and there was a financial risk to run this mega project without a detailed structure/feasibility study. The soil testing investigation report is most essential before initiation of this mega project, the physical and financial phasing details may be provided to avoid time and cost overrun. The topographic study and environmental impact assessment may also be provided and incorporated in PC-1 to avoid environment hazards.

The CDWP approved eight development projects worth Rs 144.3 billion during its meeting chaired by Minister PDSI & Deputy Chairman Planning Commission Ahsan Iqbal. Out of these, five projects worth Rs 15.35 billion were approved, while the forum recommended three projects worth Rs 129 billion to the Executive Committee of the National Economic Council (ECNEC) for consideration.

The meeting was attended by Secretary Planning Awais Manzur Sumra, Additional Secretary Planning, Members of the Planning Commission, JCE (Ops), JCE (Ep), as well as respective Federal Secretaries and representatives from federal ministries and provincial governments. The agenda included discussion on projects of Education, Health, Higher Education, Transport & Communication and Water Resources sectors.

Ahsan expressed his gratitude for the prime minister for entrusting him with the position of deputy chairman for the fourth time. He highlighted the significance of the forum in relation to developmental projects, emphasizing that approval for development projects by the CDWP exceeding one billion rupees was granted. He pointed out that in 2018, the PMLN government left Pakistan’s development budget at 1,000 billion rupees. However, six years later, the challenge remains to even maintain this figure due to the country’s economic crises due to 2018-2022 era’s mismanagement. He stressed that the shrinking development budget demands focus on sustainable growth, currency stabilization, and economic stability through resource mobilization.

He noted that more than 50% of the total expenditure was consumed by debt servicing. He emphasized the need to expand the tax net and promote exports. Despite these challenges, he expressed optimism, acknowledging the government’s efforts to reduce the inflation rate from 35% to 9.5%. He said as 100% of federal government net resources were consumed by debt servicing and the development budget is based on borrowing. He called on all provinces and ministries to exercise utmost caution and responsibility when planning new projects. He urged that no compromise be made on quality while preparing PC-I documents, and that national priorities be considered when formulating any project. Poorly-prepared project documents be promptly returned to the respective ministries. The government is committed to turning around the economy by implementing the 5Es National Economic Transformation Plan and restoring 6% annual growth by 2029.

A project related to education presented in the meeting namely “Reaching Out of School Children (OOSC) in AJK” worth Rs 7,183.515 million was approved by the CDWP. The source of financing is an IsDB loan. A project related to the health sector presented in the meeting namely “Establishment of Nawaz Sharif Institute of Cancer Treatment & Research, Lahore” worth Rs 52,772.520 million was recommended to the ECNEC for consideration. The project is proposed to be financed through the Provincial ADP. The project scope includes civil work for main hospital, cancer care clinic, hospice & palliative care facility, doctors accommodation and a parking plaza, procurement of medical equipment, furniture and fixtures, hiring of medical and allied service staff and establishment of a project management unit comprising f professors and consultants in clinical care. The PC-I envisaged provision of low cost quality and comprehensive cancer treatment at the 565-bed Institute of Cancer and Research in Lahore. The cancer treatment-related healthcare services will be integrating various modalities such as surgery, chemotherapy, radiation therapy and palliative care. The project also plans to accommodate patients having terminal illness in the hospital. The project will engage highly-qualified personnel, i.e. medical and engineering professionals, technologists and administrative workforce on market-based salaries. The project is being constructed on the government land.

Four projects related to the higher education sector presented in the meeting namely “Establishment of National Center of Artificial Intelligence (Revisited)” worth Rs 1,854.446 million, “Establishment of National Center of Excellence in Big Data and Cloud Computing (Revised) worth Rs 2,383.186 million, “Establishment of National Center in Robotics and Automation (Revised)” worth Rs 2,043.663 million and “Establishment of National Center for Cyber Security (Revised)” worth Rs 1,887.794 million were approved by the forum. These projects will advance technology readiness levels to unprecedented heights. The big data project will focus on digital export activities, ensuring global recognition and industry collaboration. The idea is to provide a platform for promoting a culture of big data analytics and cloud computing industry and related businesses.

A project related to transport & communications presented in the meeting namely “Sindh Flood Emergency Rehabilitation Project (SFERP) Phase-II” worth Rs 61,308 million was recommended to the ECNEC for consideration. The project is proposed to be financed through a World Bank loan. The local funding of the project is 5,574 million and the foreign funding is 55,734 million. The proposed project under Phase-II of the SFERP will support the government of Sindh efforts to rehabilitate the critical infrastructure damaged during the 2022 floods and enhance disaster response capacity. The activities proposed under Phase-II are aimed at scaling-up key activities and addressing financing gaps, to increase overall program impacts and enhance its development effectiveness.

A project related to the water resource sector presented in the meeting namely “Kachhi Canal Project Restoration of Flood Damages 2022” worth Rs 14,701.427 million was recommended to the ECNEC for consideration. The project is aimed to restore the Kachhi Canal Infrastructure in Punjab, so that the benefits anticipated in the approved PC- may be continued. The project includes restoration of flood damages of the Kachhi Canal Project RD 0+000 to RD 1005+000, which are essential to synchronize and restore the canal system. The components which have been included are earth work, desalting of canal prism, restoration of breaches/cuts of F.P. Bund and embankments (IP&NIP), replacement of damaged P.C.C Canal Lining, restoration of damaged structure and construction of inlet structures and restoration of underground water course crossing.

The CDWP forum cleared two Concept Papers namely “Recovery of Maternal and Child Health Care Equipment in Flood Affected Areas in Khyber Pakhtunkhwa” sponsored by JICA & “Green Energy Projects Financed by KFW Bank Germany-PEECA/Gov of Punjab” financed by KFW Bank Germany – PEECA/Govt.