CDWP Approves Rs. 53 Billion Cancer Hospital Without Feasibility Study

The Central Development Working Party (CDWP) has approved 8 development projects worth of Rs. 144.3 billion during its meeting chaired by Minister PDSI & Deputy Chairman Planning Commission Ahsan Iqbal, The federal government hastily approved the Nawaz Sharif Cancer Hospital project, valued at nearly Rs. 53 billion, without completing the necessary detailed feasibility study and business plan. The Central Development Working Party (CDWP) approved the project despite significant gaps in its preparation. Out of these, 5 projects worth Rs. 15.35 billion have been approved by the CDWP forum, while the forum has recommended 3 projects worth Rs. 129 billion to the Executive Committee of the National Economic Council (ECNEC) for its consideration. The meeting was attended by Secretary Planning Awais Manzur Sumra, Additional Secretary Planning, Members of the Planning Commission, JCE (Ops), JCE (Ep), as well as respective Federal Secretaries heads of Provincial and representatives from Federal Ministries and Provincial Governments. The agenda included discussion on projects in Education, Health, Higher Education, Transport & Communication and Water Resources sectors. In the Central Development Working Party (CDWP) meeting, Ahsan Iqbal expressed his heartfelt gratitude to the Prime Minister for entrusting him with the position of Deputy Chairman for the fourth time. He highlighted the significance of the forum about developmental projects, emphasizing that approval for development projects by CDWP exceeding one billion rupees is granted. Ahsan Iqbal pointed out that in 2018, the PMLN government left Pakistan’s development budget at Rs. 1,000 billion. However, six years later, the challenge remains to even maintain this figure due to the country’s economic crises due to the 2018-2022 era’s mismanagement. He stressed that the shrinking development budget demands a focus on sustainable growth, currency stabilization, and economic stability through resource mobilization. The Deputy Chairman also noted that more than 50 percent of the total expenditure is consumed by debt servicing. He emphasized the need to expand the tax net and promote exports. Despite these challenges, he expressed optimism, acknowledging the government’s efforts to reduce the inflation rate from 35 percent to 9.5 percent. Ahsan Iqbal further stated that as 100% of the Federal Government’s net resources consumed by debt servicing and development budget is based on borrowing essential to ensure value for money through due diligence. He called on all provinces and ministries to exercise the utmost caution and responsibility when planning new projects. He urged that no compromise should be made on quality while preparing PC-I documents and that national priorities should be considered when formulating any project. Poorly prepared project documents should be promptly returned to the respective ministries. The government is committed to turning around the economy by implementing the 5Es National Economic Transformation Plan and restoring 6 percent annual growth by 2029. A project related to Education presented in the meeting namely “Reaching Out of School Children (OOSC) in AJK” worth Rs. 7,183.515 million was approved by the CDWP forum. The source of the financing is the IsDB loan. A project related to the Health sector presented in the meeting namely “Establishment of Nawaz Sharif Institute of Cancer Treatment & Research, Lahore” worth Rs. 52772.520 million, was recommended to ECNEC for consideration. It is proposed that the project be financed through the Provincial ADP. The project scope includes civil work for the main hospital, Cancer care clinic, Hospice & Palliative care facility, Doctors’ accommodation and Parking plaza, procurement of medical equipment, furniture and fixtures, hiring of medical and allied service staff and establishment of Project Management Unit comprising of professors and consultants in Clinical care. The PC-I envisaged the provision of low-cost quality and comprehensive Cancer treatment through a 565-bed Institute of Cancer and Research located in Lahore. The Cancer treatment-related healthcare services will integrate various modalities such as Surgery, chemotherapy, radiation therapy, and palliative care. The project also plans to accommodate patients with terminal illnesses in the hospital. The project will engage highly qualified personnel i.e. medical and engineering professionals, technologists and administrative workforce on market-based salaries. The project is being constructed on government-owned land. Four projects related to the Higher Education sector were presented in the meeting namely “Establishment of National Center of Artificial Intelligence (Revisited)” worth Rs. 1,854.446 million, “Establishment of National Center of Excellence in Big Data and Cloud Computing (Revised): worth Rs. 2,383.186 million, “Establishment of National Center in Robotics and Automation (Revised)” worth Rs. 2,043.663 million and “Establishment of National Center for Cyber Security (Revised)” worth Rs. 1,887.794 million approved by the forum.  These projects will underscore by its commitment to advancing Technology Readiness Levels (TRLs) to unprecedented heights. The big data project will focus on digital export activities, ensuring global recognition and industry collaboration. The idea is to provide a platform for promoting a culture of Big Data Analytics and the Cloud Computing industry and related businesses. A project related to Transport & Communications presented in the meeting namely “Sindh Flood Emergency Rehabilitation Project (SFERP) Phase-II” worth Rs. 61308 million recommended to ECNEC for consideration. The project is proposed to be financed through a World Bank loan. The local funding of the project is Rs. 5,574 million and the foreign funding is Rs. 55,734 million. The proposed project under Phase-II of SFERP will support the Government of Sindh’s efforts to rehabilitate critical infrastructure damaged during the 2022 floods and enhance disaster response capacity. The activities proposed under Phase II are aimed at scaling up key activities and addressing financing gaps, to increase overall program impact and enhance its development effectiveness. A project related to the Water Resource sector presented in the meeting namely “Kachi Canal Project Restoration of Flood Damages 2022” worth Rs. 14,701.427 million recommended to ECNEC for further consideration. The project is aimed to restore the Kachhi Canal Infrastructure in the Punjab Province, so that the benefits anticipated in approved PC-I of Kachhi Canal Project (Phase-I) may be continued. Unprecedented torrential rains occurred in the project area during the recent Monsoon in June-August 2022. The pre-monsoon rainfalls were witnessed in the project area in mid-June 2022. The major monsoon spells were observed in the Kachhi Canal Project area from 20th June, 7th July, 14th July, 26th July & 13-14th August 2022. Resultantly, exceptionally high flash floods emanating from major Hill Torrents of Koh e Suleman range hit the Kachhi Canal from RD 0+000 to RD 1005+000, and severe damages occurred to the Canal due to this natural calamity. The Project includes the Restoration of flood damages of Kachhi Canal Project RD 0+000 to RD 1005+000 which are essential to synchronize and to restore the system of the Kachhi Canal Project The components which have been included are earthwork and desalting of canal prism. restoration of breaches/cuts of F.P. Bund and Embankments (IP&NIP), replacement of damaged P.C.C Canal Lining, restoration of the damaged structure and construction of inlet structures and restoration of underground water course crossing. The CDWP forum cleared two Concept Papers namely “Recovery of Maternal and Child Health Care Equipment in Flood Affected Areas in Khyber Pakhtunkhwa” sponsored by JICA & “Green Energy Projects Financed by KFW Bank Germany-PEECA/Gov of Punjab” financed by KFW Bank Germany – PEECA/ Govt.