Unceasing delays in approvals and funding issues cause disruption in Western Route of CPEC

During a presentation to the Senate Standing Committee on Planning and Development on Monday, the National Highway Authority (NHA) reported that the road projects under the Western Route of the China-Pakistan Economic Corridor (CPEC) had been put to a halt as a result of delay in project approvals by China and non-disbursement of funds allocated to the Public Sector Development Programme (PSDP) caused by the political changes in the country.

The NHA officials informed the Committee that the work on the Hakla-Dera Ismail Khan Motorway project was not progressing due to funding issues. One of the officials reported that the Chinese government’s delay in approval of projects “has brought work on roads to stand still,”

The meeting of the Committee, headed by Senator Agha Shahzaib Khan Durrani, was attended by Senators Gianchand, Kauda Babar, Rukhsana Zuberi, Muhammad Usman Khan Kakar and Hidayat Ullah

Senator Usman Kakar alleged that there had been no developmental work on the Western Route road projects for the past two and a half years. There was an allocation of only Rs.6 billion in the PSDP for the Western Route during the current fiscal, he added.

The committee chairman directed that work must be rushed on the western route of CPEC and projects must be completed “by removing all technical, bureaucratic, and financial hurdles immediately”.

Project Director CPEC, Planning Commission, Hassan Daud Butt told the Committee that Pakistan had received Rs.6 billion loans for infrastructure projects and the grace period for 90 per cent projects was currently in progress. A total investment of $36bn was made by Chinese companies in 22 development projects including 15 in the energy sector. Work was underway on 15 energy projects of 11,110 MW and four projects of 2,544 MW were being actively promoted. So far a loan of $8.13bn for railways project ML-1 had not been received, he added.

He further expressed the need for the planning ministry to take the matter of Western Route issues to the Chinese government in the 8th meeting of the CPEC Joint Coordination Committee, which is to be held in China in a couple of months, to ensure early completion of the projects.

On the occasion, committee members – particularity from Baluchistan – also expressed serious concern over the shortage of water and electricity in Gwadar city and slow pace of work on the Western Route under CPEC. They said that 300,000 gallons of water was being supplied to Gwadar City per day while total demand was six million gallons per day. The committee recommended that the new government should resolve issues of water, electricity and security in Gwadar port city on priority.

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