Ecnec approves Rs246.6 bn for Karachi

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Economic Updates - Pak Major Financial News

ISLAMABAD: The Executive Committee of the National Economic Council (Ecnec) that met here on Thursday with federal minister for finance Dr. Abdul Hafeez Shaikh in the chair approved the Rs246.588 billion Karachi Circular Railway project.

The project envisages the revival of the existing Karachi Circular Railway by proposing dualisation of the 29.41 km long KCR loop and provision of two 13.69 km long dedicated tracks along the Pakistan Railways UP main line for the Karachi city station of Drigh Road with a total route length of about 43.12 km and track length of 86.24 km.

The committee approved the scheme because of the low interest rate proposed by JICA. Moreover, it has asked the Sindh government for full coordination with the ministry of railways for early execution of the project.

While keeping in view the need for the development of FATA, the Ecnec also gave an anticipatory approval for the Munda dam project. The Ecnec, in all, approved 45 projects of paramount importance that also include the construction of 26 dams under package-II at a cost of Rs4.647billion as part of the construction of 100 Delayed Action Dams in Balochista

The other projects that were accorded approval include Procurement/manufacture of 500 high capacity bogies/ wagons & 40 high speed power vans, costing Rs11.998 billion (PSDP-funded); special repairs of 150 diesel electric locomotives costing Rs5,005 million (PSDP- funded); mechanisation of track maintenance (pilot project), costing Rs4,055 million (PSDP-funded); Khyber Pakhtunkhwa road development sector & sub-regional connectivity project (provincial component), costing Rs12,982 million (co-funded by provincial ADP and ADB); M-4/N-70 Motorway (8 km) widening/improvement of intervening road between flyovers at double phattak and chowk Nag Shah at Multan, costing Rs4,028.500 million (PSDP-funded); management of hill torrents in CRBC area (Stage-III), Dera Ghazi Khan, costing Rs2225.735 million; procurement of machinery for rehabilitation of irrigation infrastructure, costing Rs1,550 million, Punjab Irrigated Agriculture Productivity Improvement Project (PIPIP), costing Rs36,000.705 million (Word Bank and community/farmers contributions in funding); Bazai Irrigation Scheme Khyber Pakhtunkhwa, costing Rs3400.661 million; remodelling of S.M.B Link Canal & enhancing capacity of Mailsi Syphon, costing Rs2,571.088 million; Japanese Assisted Rural Roads Construction Project Phase-II, Sindh, costing Rs8,875.19 million (JBIC and Govt of Sindh funded); Naulong Dam Project, costing Rs.18,027.091 million; construction of Nai Gaj Dam Project, costing Rs.26,236.03 million; construction of Darwat Dam Project, costing Rs9,300 million; Chashma Right Bank Irrigation Project - additional works & outstanding liabilities costing Rs1150 million; Construction of six dispersal structures on Nari River costing Rs4912.39 million; construction of Toiwar/Batozai storage dam, Killa Saifullah costing Rs4344.743 million; rehabilitation of rolling stock and track in connection with bailout package costing Rs4,000 million; realignment of KKH at barrier lake, Attabad, Hunza and Gilgit-Baltistan (17 km new + 7 km rehabilitation) costing Rs26,476.820 million; establishment of AJK Medical College Muzaffrabad (Phase-II) costing Rs2702.41 million; Upgrading of 04x66 KV grid station Deara Murad Jamali, Rojhan Jamali, Usta Mohammad and Jhal Magsi to 132 KV with allied transmission lines from 220/132 KV Dera Murad Jamali grid station costing Rs1998.81 million; detailed design and construction of Matiltan HPP (84 MW) District Swat, Khyber Pakhtunkhwa costing Rs15140.820 million, construction of Lawi hydro power project (69.0 MW) district Chitral (PC-I) costing Rs12,235.45 million, 04 MW hydro power project, Thak Chilas, costing Rs1320.117 million(PSDP + ADB funded); inter-connection of Thar coal-based 1200 MW ENGRO power plant with NTDC system, costing Rs22305.73 million, Tarbela 4th Extension Hydropower Project (PC-I) (Tarbela Dam Project is located on the Indus River 110 km from Islamabad and falls under jurisdiction of Swabi and Haripur districts of Khyber-Pakhtunkhwa) costing Rs83601.040 million; transmission interconnection for dispersal of power from Uch-II power project costing R.2508.160 million; Gwadar-Lasbella Livelihood Support Project costing Rs2,998.088 million and National Gas Efficiency Project costing Rs30,400 million.

The other projects which were also approved include establishment of Programme Management Office (PMO) for Pakistan Energy Efficiency Investment Programme (PC-II) under Programme Support Project (ADB loan no.2553) costing Rs1,697 million(PSDP + ADB funded); revitalising and strengthening the health service delivery and nutrition services in crises-affected districts of Khyber Pakhtunkhwa under Public Private Partnership costing Rs2125.50 million; construction of Khyber Institute of Child Health & Children Hospital at Hayatabad, Peshawar (Phase-II) costing Rs2209.296 million; improvement of Children Hospital in Karachi costing Rs1675.952 million; Municipal Services Delivery programme, Sindh costing Rs6898.55 million; Municipal Services Delivery programme costing Rs8,733.27 million; Punjab School Libraries Project (German debt SWAP-I) costing Rs446.926 million; Sindh Basic Education Programme (SBEP) costing Rs14355 million; establishment of Provincial Training Centre for Mine Workers and Emergency Response Training costing Rs1150 million; construction of fish landing jetty and allied harbour facilities at Surbunder, Gwadar costing Rs1,043.400 million; rehabilitation of Radio Pakistan medium wave transmission network for improvement in education, health, information and enlightenment in Khyber Pakhtunkhwa Province FATA, Gilgit-Baltistan and Punjab Province under Japanese Grant/Aid, costing Rs1644.145 million and procurement/manufacture of 50 diesel electric locomotives, costing Rs19406 million.

The committee also discussed projects titled “Establishment of Mohtarma Benazir Bhutto Medical College Mirpur (Phase-II)” at a cost of Rs3176 million (both project and operational cost). After evaluating different expects of the project it formed a committee comprising the DCPC and representative from Ministry of Finance to re-consider the operational cost to a minimum level. Ecnec also asked the government of AJK to provide a detailed report of its already completed projects.

While deliberating on a project titled “Reconstruction and Rehabilitation of Road Infrastructure Damaged due to Flood/Heavy Rain 2010 in AJK,” costing Rs1790 million, the committee asked the relevant sponsoring agency – the government of AJ&K – to find sources for funding for the said project before seeking approval.

The committee formed a panel comprising chairman NHA, representative from government of KPK and Secretary Planning, to provide inputs for identification of funding sources for the projects titled “Improvement & Widening of N-45 (141 km)”, costing Rs8550 million.

A project titled “Rehabilitation of Track on Lahore-Lalamusa section with new signaling and telecommunication system (2012-2014)” also got the same treatment. Ecnec also approved the design study of the Benazir Bridge across Rive Sutlej linking Chistian with Burewala, costing Rs1250 million. However, the cost of this project will be revised.

The project titled “Channelisation of Deg Nullah from Muridke-Narowal Road to Outfall” was also discussed in the meeting. Chief secretary Punjab requested that the funding requirements of this project should be arranged by the Flood Commission of Pakistan, which the committee accepted.

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