Chairman NHA Captain Sikander Qayyum (retd) recently presided over the meeting where the board recommended for the 3rd revision of PC-1 amounting to Rs 46,039.69 million including FE Component of Rs 10,971.08 million for approval by the Central Development Working Party (CDWP)/ Executive Committee of the National Economic Council (ECNEC).
The official sources revealed to Business Recorder that the NHA Executive Board had considered the working paper regarding the PC-1 (3rd Revision) of Lowari Tunnel & Access Road Project in its earlier meeting and directed as follows: a) The current project which comprises Package-I & II be included in revised PC-1 (3rd Revision) and should be based on actual cost by excluding the costs of electrical & mechanical works and also elaborate all factors that caused delays. b) Prepare separate PC-1 for electrical and mechanical works along with operational & complementary buildings, control center and bridges of South & North Access Roads of Package-II of Lowari Tunnel Project. The NHA to adopt EPC contracting mode for the subject works.
After detailed deliberations, the NHA Executive Board reconsidered its earlier decision taken in 319th board meeting, dated May 03, 2019 and recommended the PC-1 (3rd Revision) of Lowari Tunnel & Access Road Project amounting to Rs 46,039.69 million including FE Component of Rs 10,971.08 million for approval by the CDWP/ ECNEC .
Construction of the Lowari Tunnel began in September 1975 as a railway tunnel but the work was stopped in 1977 after the change of the government. Construction resumed in September 2005 initially with a scheduled completion in three years but that time was extended after it was decided to convert it to a road tunnel. In 2015, the government approved additional funds for a revised PC-1 of the Lowari Tunnel, and indicated that it would be completed by October 2017 at an estimated cost of Rs 27 billion against the initial cost of Rs 7 billion.
Cost overruns in mega projects of the NHA have become routine due to inconsistent policies, shortage of funds, security reasons, corruption, and willful incompetence on the part of contractors, said the sources, adding that some of the vital road projects' cost escalated by over 200 percent and these are still in implementation process despite passage of over 10 years.
According to the officials, some projects are being delayed due to shortage of funds, flawed designing, relocation of utilities and land acquisition, resulting in cost escalation. But in some cases contracts are awarded to contractors on the basis of political patronage who then proceed to delay implementation to raise construction charges manifold, they added.-TAHIR AMIN