NHA’s Throw-Forward Hits Rs. 1.2 Trillion Leading to Delay in Projects

The throw-forward of the National Highways Authority (NHA) has accumulated to Rs. 1.192 trillion, as a result of inadequate budgetary allocations contrary to the actual demands, which is severely hampering/delaying projects execution.

Official documents seen by ProPakistani revealed that NHA’s annual demand of funds for the previous few years remained between Rs. 300 to 350 billion, whereas, allocations have been in the range of Rs. 105 to 120 billion which is less than one-third of the actual demand, resulting in accumulation of huge backlog in the shape of throw forward.

The NHA plans and executes road infrastructure projects in line with the vision and strategy of the government to boost the economic growth of the country. Based on the priorities set forth by the government, allocations are proposed in Public Sector Development Programme (PSDP) as per the financial phasing plan approved by the Central Development Working Party (CDWP) and the Executive Committee of the National Economic Council (ECNEC) while approving projects’ PC-I.

Due to the non-allocation of funds as per the approved financial phasing plan and committed in the authorization letter issued by Planning Commission, the execution of the projects has been severely hampered. As a result of inadequate budgetary allocations contrary to the actual demands, the throw-forward has accumulated to Rs. 1.192 trillion.

Official sources said the current pace of approval of new NHA projects was not sustainable and ongoing or new schemes could not be completed on time with available funding. The budgetary allocations far less than the approved financial phasing plan committed in the authorization letter have not only delayed the completion of the projects but also resulted in giving rise to lodging financial claims by contractors.

Implementation of any project is 100 percent dependent on the availability of funding requirements as per the financial phasing plan approved by CDWP/ECNEC in projects’ PC-I. The NHA has the capacity to deliver and complete the projects well within the stipulated timelines provided the funds are timely made available as per the approved funding requirements. Therefore, project planning and execution are totally dependent on the availability of funds allocations and the timely release of funds.

The demand for the next three to four years is about Rs. 300 billion per year. If this funding is made available, then the NHA will be able to complete all projects well within the given/scheduled timelines. Ongoing projects are accorded priority so that the delay in completion can be avoided. The official added that NHA undertakes projects approved by the competent forums, i.e. Developmental Development Working Party (DDWP), CDWP, and ECNEC.



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