Project facing Rs3bn cost escalation

ZAHEER ABBASI

ISLAMABAD: Bhuran-Havelian Expressway is reportedly facing a cost escalation of Rs 3 billion even before commencement of construction work on the project.

A statement issued by the Prime Minister’s office stated that Prime Minister Nawaz Sharif is going to perform ground-breaking ceremony of Rs 33 billion 60 kilometer-long Hazara Motorway. Sources said that PC-I for construction of 59.1 kilometer E-59 (Bhuran Havelian) expressway was approved by the Executive Committee of National Economic Council (ECNEC) presided over by Finance Minister Ishaq Dar at a cost of Rs 30.484 billion.

This correspondent contacted Danyal Gilani - media officer in the Prime Minister’s Office - who expressed complete ignorance about the project; he however promised to respond to queries after gathering information from relevant officials. PM office’s spokesman Mohiuddin Wani said he was busy but promised to get back in due course; however neither official got back till the filing of this story.

“This important road link would be part of Pakistan China Economic Corridor agreement. The 60-km long 4-lane fenced expressway will cost Rs. 33 billion. Hazara Motorway will reduce the drive time from Islamabad to Havelian to just 30 minutes in addition to providing road to the Havelian Dry Port project. The project is a translation of Prime Minister’s commitment to expand the networks of motorways to build a progressive Pakistan. The project anticipates hundreds of thousands of employment opportunities, possibilities of new business ideas, and socio-economic uplift of the whole region,” added the statement.

Sources added that the project, sponsored by the Ministry of Communications to be executed by National Highway Authority (NHA), at a cost of Rs.30.986 billion including a Foreign Exchange Component (FEC) of Rs.7.592 billion envisages construction of 59.1 km limited access four-lane expressway. The project is proposed to be funded through an Asian Development Bank (ADB) loan (85% of total cost) to the extent of US$ 315 million and an amount of Rs 2.8 billion has been allocated under 2014-15 PSDP for the project.

They added that the original project envisaging the construction of 4-lane expressway from Hasanabdal to Mansehra (110 km) at a total cost of Rs.46.810 billion, including an FEC component of Rs.13 billion with ADB funding at 88.9% and government 11.1%, was considered by ECNEC in its meeting held on 13 September, 2013.

The ECNEC directed that the PC-I of the project should be reviewed in terms of the scope and cost, keeping in view the economic corridor project being envisaged with the government of China. Based on the above, Ministry of Communication and NHA have moved a summary to the Prime Minister seeking approval for signing the loan agreement with ADB for E-35, for the construction of a four-lane expressway between Hassanabdal (Bhurhan) and Havelian. The proposal was approved by the Prime Minister.

The construction of E-35 has been under discussion with the ADB since 2005. The agreed design of E-35, with the ADB, is of a 4- lane limited access Expressway and all the costing was earlier worked out on that basis.