Planning Commission Cuts Lowari Tunnel Construction Cost By Over Rs. 18 Billion

The Planning Commission has disallowed the escalated cost of Rs. 46.04 billion for the Lowari Road Tunnel & Access Roads Project and instead approved it at Rs. 27.960 billion while asking the sponsor to submit a separate PC-1 for balance works of the project. PC-1 is the final feasibility work document by the Planning Commission of any project.

The Central Development Working Party (CDWP) had ordered splitting the project into two phases and approved Rs. 27.960 billion for the first phase, which is almost Rs. 18 billion or 40 percent less than the revised estimated cost of the total project, and directed Communications Division/NHA to bring a separate PC-I for the balance work, an official source told ProPakistani.

The CDWP had recommended the project to ECNEC at the rationalized cost of Rs. 27.960 billion including FEC of Rs. 4.274 billion with the following directions:

1. The Civil Works for the tunnel and other ongoing works under contractual obligations will be completed without any delay and the instant PC-I will be closed. A PC-IV in this regard will be submitted by the Ministry of Communications / NHA.
2. A Separate PC-1 for balance works of E&M Works, operational buildings at south & north, construction & design of newly proposed additional bridges for North & South Access Roads Package-II will be submitted within 2 months’ time. This separate PC-I should be based on a proper design with firmed-up cost estimates and authentic site data. The completion time of work under this separate PC-I will be 24 months.
3. NHA will provide certification in writing that the escalation & other contractual payments made to the contractor in respect of this project are as per contract and that all the prevailing rules & regulations for making such payments have been followed in letter & spirit. A summary for the ECNEC will be submitted upon receipt of the above certification from NHA.
4. Secretary Communications will submit a fact-finding report on the non-completion of design for the scope included in the 2nd Revised PC-I and submit its findings to the Planning Commission which has caused undue delay by NHA in the completion of access roads and civil works.

The cost of the Lowari Tunnel Project escalated by around 475 percent to Rs. 46 billion during the last 18 years, mainly due to delays in execution and scarcity of funds. As per the original PC-I of the Lowari Road Tunnel & Access Roads Project, the cost of the project was Rs. 7.984 billion in 2004, which has escalated to Rs. 46.040 billion in the 3rd revised PC-I 2022, the source said.

The implementation period of the project is 230 months (19 years and 2 months) starting on September 19, 2005, and will continue till October 31, 2024.

The Lowari Tunnel is part of National Highway Road i.e. N-45. It originates from Nowshera, passes through Mardan, Malakand, and Chakdara, and culminates at Chitral while passing Lowari Pass at a height of 3,150 meters (10500 ft). The project is located between the townships of Dir and Drosh connecting the districts of Dir and Chitral. The project comprises two tunnels of length 8.5 km and 1,9 km, 04 bridges in a tunnel complex two portals, and link access roads along with bridges.

Following the CDWP recommendations, ECNEC also granted approval to revise the Lowari Road Tunnel & Access Roads Project at the total rationalized cost of Rs. 27.960 billion.