KARACHI: Sindh Chief Minister Syed Murad Ali Shah has said that the federal government has done a great injustice to the people of Sindh by deleting their 36 schemes of Rs51 billion, including a Sukkur barrage scheme, from its 2019-20 PSDP. This act, he added would further foment a sense of deprivation and isolation in the people of Sindh.

The chief minister stated this while presiding over a preparatory meeting here on Tuesday at CM House about the National Economic Council (NEC) meeting, scheduled for Wednesday in Islamabad.

The chief minister said that the overall finance division’s allocation for PSDP 2019-20 was Rs36.61 billion in which Khyber Pakhtunkhwa /federally administered tribal areas (Fata) has been given 75 per cent funds, Balochistan 15 per cent, Sindh 4.85 per cent and Punjab four per cent.

Mr Shah, who will attend the NEC meeting along with Sindh Minister Nisar Ahmed Khuhro as Sindh representatives, said that the estimated cost of the entire PSDP portfolio, both the existing and new, was Rs8 trillion in which Sindh-based schemes cost was Rs540 billion.

“It means Sindh has been given only seven per cent share in the PSDP,” he said and termed it an injustice with the people of this province.

National Economic Council meeting is scheduled to be held in Islamabad today

The 36 schemes, which the federal government had deleted include foreign aided component schemes besides water and road schemes including rehabilitation and modernisation of Sukkur Barrage, which is a World Bank funded project in which 80 per cent funds would be financed by World Bank while the Sindh government share would be 10 per cent and the federal government had to borne only 10 per cent in 2019-20.

Deleted schemes

The chief minister said that the other deleted schemes were construction of a new bridge with approach roads over River Indus between Sukkur-Rohri which was announced by the then prime minister Nawaz Sharif during his visit to Sukkur.

The other schemes are construction of a 88 km Mirpurkhas-Umerkot section; construction of Southern Bypass Hyderabad (ADB); rehabilitation of existing 200km carriage way from Sehwan-Ratodero; Lining of K.B. Feeder Upper Canal for Water Supply to Karachi City - its cost would be shared by the federal and the provincial governments on the basis of 50/50 per cent. Construction of Feeder Canal to Manchar Lake to Eradicate Contamination and it is also on 50/50pc sharing basis.

Mr Shah said that the Jamshoro to Sehwan Section Road was a classic case of mismanagement. It has three roads. “The Sindh government has provided Rs7 billion to get this important road completed, but unfortunately, there is no progress on it,” he said and added that he would request the federal government to instruct the NHA to complete it or return Rs7 billion of the Sindh government so that the provincial government could complete it from its own resources.

The chief minister further said that the federal government had drastically reduced the overall allocation of schemes reflected in the finance division portfolio, which were being executed by the provincial government. He lamented that “There now left only five on-going schemes with an estimated cost of Rs23.9 billion against which only Rs1.77 billion has been allocated for next financial year 2019-20.”

He also mentioned the schemes which were being executed by the Sindh government but were now deleted from PSDP 2019-20.

S-III Project

The S-III Project was revised by the Executive Committee of the National Economic Council (ECNEC) from Rs7.982 billion to Rs36.117 on Feb 7, 2018. The cost of the project was originally shared by the Sindh and the federal governments on 50/50pc basis but the federal government did not agree to share 50 per cent of the revised cost. The total expenditure against the federal share till June 2018 is Rs3.129 billion. The federal government allocated the balance share of original cost in PSDP 2018-19 which is Rs862.00 million and released only Rs344 million. An amount of Rs517 million is also pending against original federal government’s committed share. This has been deleted from PSDP.

Roads in Hyderabad

The project was cleared by the Central Development Working Party (CDWP) on March 18, 2010. The scheme has been completed through Bridge Financing by the Sindh government in 2011-12. An amount of Rs175.864 million is pending towards the federal government. The Scheme has been deleted from PSDP 2019-20.

An amount of Rs299.71 million is pending against the federal government’s share.

Lining of minors

This was for lining of 109 selected channels of 860 miles at an approved cost of Rs13.828 billion. Rs8.069 billion expenditure stands incurred till June 2018. There is throw-forward of Rs5.032 billion and scheme has been deleted from PSDP 2019-20.

Rehabilitation of Irrigation: Rehabilitation of Irrigation & Drainage System of Sindh was approved at Rs16.795 billion. An amount of Rs13.386 billion has been incurred till April 30, 2019 leaving a throw-forward of Rs3.409 billion. This scheme stands deleted from PSDP.

The chief minister said that approximately over Rs8 billion liability has been left out against committed projects with implications on these schemes. Therefore, the federal government should release the amount to the provincial government.

Mr Shah said that NHA Executed Schemes (including CPEC) has size of 78 projects with an estimated cost of Rs2 trillion against which Rs156 billion has been allocated.

He added that over all Sindh’s portfolio under Communications (NHA) comprised of six schemes with a total estimated cost of Rs74 billion the allocation is only Rs7.7 billion for 2019-20. The overall share of this portfolio comes to 4.9 per cent of total NHA portfolio. Punjab has 21 schemes and their share comes to 34 per cent, KPK’s share comes to 21 per cent and Balochistan’s share is 23pc.

Water sector

The total number of schemes under the water sector is 97 with a total estimated cost of Rs2.34 trillion. The Allocation for 2019-20 is Rs84.7 billion.

The chief minister said that Sindh’s overall portfolio in water sector has a total cost of Rs175.59 billion, having an allocation of Rs7.02 billion for nine schemes under PSDP 2019-20. “In terms of percentage of total cost of water sector, it comes to seven per cent of the total water sector cost of Rs2.3 trillion,” he said.

Mr Shah said that Sindh’s portfolio with total cost of Rs175 billion was also because of the two major schemes of RBOD II and I; which together have an estimated cost of Rs54.56 billion and Rs17.5 billion. “These projects in principle should be considered “National Projects portfolio”, as these schemes are for carrying effluent from Balochistan and leave adverse environmental impact since it passes across the province,” he said.

The RBOD II was revised on July 26, 2017 on the orders of the Supreme Court of Pakistan at the total Cost of Rs61.985 billion with completion date of June, 2020. The share of federal government is Rs54.985 billion and the estimated expenditure till June, 2019 would be Rs37.017 billion leaving a throw-forward of Rs17.968 billion.

He said that 2019-20 would be last year for completion of RBOD-II, therefore; the federal government was required to provide Rs17.968 billion in order to complete the project by June, 2020. He pointed out that the federal government had allocated Rs1.5 billion for 2019-20 against a throw forward of Rs17.968 billion. “The share of Sindh government is Rs7 billion, out of which Rs3 billion stands utilised and Rs4 billion is proposed to be allocated in ADP 2019-20,” he said.

The chief minister said that Darawat Dam cost Rs11.7 billion against which the federal government had earmarked Rs600 million against a throw forward of Rs3.02 billion.

Mr Shah pointed out that Wapda gave Re-revision of Rs46 billion for the Nai Gaj Dam being constructed since 2009. He added that it was a federally-funded project where the Sindh government commitment was only Rs1.88 billion. “The Ecnec suggested the Sindh government should provide 50 per cent sharing since the first revision which is an injustice with the people of the province.”

Small dams

Construction of Small Storage Dams, Delay Action Dams, Retention Weirs & ISSO Barriers in Sindh (multiple districts): the scheme was approved for Rs12.211 billion. An amount of Rs5.731 billion has been spent till April 30, 2019 leaving a throw-forward of Rs6.479 billion. The federal government has provided Rs600 million for 2019-20 against a throw forward of Rs6.479 billion.

Makhi Farsh

The Makhi Farsh Link Canal Project for Water Supply to Thar Coal is an important scheme. The scheme was approved at a cost of Rs10.612 billion on 50/50pc cost sharing basis. An amount of Rs2.495 billion has been incurred till April 30, 2019 leaving a throw-forward of Rs3.842 billion against the federal share. The federal government has allocated Rs500 million against the scheme in PSDP 2019-20.

Published in Dawn, May 29th, 2019