Escalated cost of projects

THE proceedings of the Central Development Working Party (CDWP) on Thursday, once again, highlighted the recurring issue of cost overruns of development projects and proverbial mismanagement in implementation of approved projects and programmes. It was told that the cost of the Diamer-Bhasha Dam Project has increased manifolds from the original cost of Rs. 480 billion in 2018 and revised PC-I has not been submitted for the last six years. Similarly, the original cost of the Tarbela 5th Extension Hydropower Project was Rs. 82 billion which has been revised to over Rs. 316 billion. Minister for Planning Prof. Ahsan Iqbal, who is a thorough professional, needs appreciation for pinpointing lapses, deficiencies and flaws in project implementation. The issue of cost escalation highlighted by the Minister is nothing new and becomes understandable to some extent because of inflation caused by the governmental policies that lead to a steep rise in construction material and affiliated material and services. However, the fact remains that the cost escalation is mainly attributable to faulty planning, non-release of timely funding and deliberate delays caused by sponsors and executing agencies. Often contracts are awarded to companies that either lack the required expertise or they do not possess tools and machinery required for project implementation. The Planning Minister is in a position to formulate clear cut guidelines for project implementation and a transparent monitoring mechanism to take care of uncalled for delays and cost escalation.