Govt Doubts NHA Can Fund New Projects as Running Costs Top Rs. 1.2 Trillion

The Planning Commission has questioned the capability of the National Highway Authority (NHA) to fund new projects as its total throw forward has reached above Rs. 1,235 billion in PSDP 2022-23. Throw forward are the expenses on the running projects.

Despite having a throw forward of approximately Rs. 800 billion for the ongoing projects, NHA has added 46 new projects to its portfolio during the PSDP 2022-23, which has further enhanced its throw forward, an official source told Propakistani.

As of July 1, 2022, the total throw forward of NHA has reached to above Rs. 1,235 billion, the source said. There are 64 ongoing projects of the NHA under progress with a total estimated cost of Rs. 2056.911 billion. The throw forward for the ongoing projects of NHA is Rs. 796.524 billion, while the allocations for the ongoing projects in the PSDP 2022-23 is Rs. 86.288 billion.

With the current allocation it will take around ten years for the NHA to fund its ongoing projects, the source claimed. The meager allocations will result in a delay in the completion of important projects and it will result in cost escalation, the source said.

In PSDP 2022-23, 46 new projects have been added. The total estimated cost of the new projects is Rs. 369.168 billion against the allocations of only Rs. 23 billion. The throw forward for the new projects is Rs. 369.168 billion, the source said. For the Viability Gap Funding (VGF), the throw forward is Rs. 69.683 billion.

With this scenario of a huge throw forward by NHA, the new projects would mean a new burden, which will further delay the completion of ongoing projects, the source said.