mmittee-told.jpg" />The Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro,convened today to discuss ongoing and completed projects of communications sector particular National Highways Motorways and Road Infrastructure under multilateral,bilateral and UN agencies along with the details of tendering process and interest paid by Federal Government on these projects.
The officials informed that a total of 33 projects have been completed as of July 2024, of which 15 projects were funded by Asian Development Bank,05 projects by World Bank,07 projects by China,01 project funded by Saudi Fund for Development,01 projects by USAID,03 projects by Japan,01 project was funded by Kuwait Fund.
The total commitments for these projects were 10 Billion USD. However, 10 projects are ongoing with a commitment of 1,547.03 Million USD, and from these 04 projects are each funded by Asian Development Bank and Korea and 01 project each by Saudi Fund for Development and World Bank.
While discussing communications sector (ongoing projects) funded by Korea, Senator Saifullah Abro raised concerns over the delay in completion of the projects. It is unfortunate to witness that projects have delayed due to change in design in later stages or due to delay in hiring the consultants, he added. Chairman Committee mentioned that, in foreign aided projects, interest has been charged since the signing of the agreement and any delay in its completion cost around millions of dollars to the nation.
It has been revealed that the consultants and contractors for the Korean Funded Projects have been hired from the list provided by Korean Exim Bank. Senator Kamran Murtazastated that local contractors and consultants should be given a fair chance to compete in the bidding process, and any restriction on local constructors and consultants infringes their constitutional rights (Article 18 & 25 of the 1973, Constitution of Pakistan).
Senator Saifullah Abro inquired about the rate charged by Korean contractors and consultant and their comparison with the local contractors and consultants. The Committee recommended the NHA to provide details of rates charged by Korean local contractors and consultants and also EAD to investigate about it. Senator Kamran Murtaza also sought details related to total amount and percentage of communications sector (completed projects) of Balochistan province.
The Committee recommended EAD and its concerned department to provide the details related to loans funded by Korea along with names of Korean companies to the Committee. The Committee recommended NHA to provide one-page information of all communications sector (ongoing projects) to the Committee. The Committee also recommended NHA to provide copy of agreements to all schemes funded by Korea to the Committee.
Senator Haji Hidayatullah highlighted the increase in Motorway toll rates. The officials of the NHA stated that toll rate has been increased every three years, and after 2018, there has not been made any increase in toll rates.
The NHA was set to increase the toll rate by 100 pc, but the increase will be made on quarterly basis. The Collection of the toll wasutilized for the maintenance of NHA road network as the NHA did not receive any grant from the Government of Pakistan for the road maintenance. Senator Kamran Murtazaremarked that toll rate should be increased at once instead of increasing it on quarterly basis.
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