CDWP clears Rs60bn development projects

CDWP clears Rs60bn development projects

ISLAMABAD: The Central Development Working Party (CDWP) has cleared five development projects with a combined estimated cost of more than Rs60 billion, including a major water supply scheme aimed at providing drinking water to Gwadar from Mirani Dam through a 125-kilometre pipeline.

The projects came under discussion at a CDWP meeting chaired by Planning Minister Ahsan Iqbal. The forum approved three projects with a combined estimated cost of Rs11.7 billion and recommended two additional projects, costing Rs48.545 billion, to the Executive Committee of the National Economic Council (Ecnec) for final approval.

Under the financial rules approved by the National Economic Council, the CDWP can approve development projects costing up to Rs7.5 billion. Projects exceeding that limit require Ecnec approval following technical clearance and recommendations from the CDWP.

Mirani Dam-Gwadar water project

A key project discussed at the meeting was the Construction of Water Supply Scheme to Gwadar Town from Mirani Dam under Balochistan Socio-Economic Development Projects Phase-III.

The Balochistan government had proposed the project at an estimated cost of Rs29 billion. However, following a technical assessment, the Planning Commission recommended reducing the cost by around 20 per cent to Rs23.82 billion.

The proposed reduction would save approximately Rs5.235 billion without changing the project’s design or scope. Officials said the Planning Commission achieved the reduction mainly by rationalising non-scheduled items and cutting contractor overheads.

The Planning Commission recommended that Ecnec approve the project after the provincial authorities address several outstanding technical issues. These include water demand estimates, hydrological assessments, confirmation of the water source, procurement arrangements, land acquisition, a financially sustainable operation and maintenance mechanism, and a realistic implementation schedule.

Planning Minister Ahsan Iqbal also directed the Balochistan government to conduct a study on wastewater treatment in Gwadar. He stressed the need to prevent untreated sewage from entering the sea and said Gwadar should not face the same environmental challenges as Karachi.

Iqbal allowed authorities to begin preparations for the bidding process to avoid unnecessary delays. However, he made it clear that officials must not award the contract until Ecnec formally approves the project.

Karachi neighbourhood improvement project

The CDWP also recommended the revised **Karachi Neighbourhood Improvement Project (KNIP)**, costing Rs19.55 billion, for Ecnec approval.

The project is nearing completion and receives financing through foreign funding. Its financing package includes an $85 million World Bank loan, equivalent to around Rs16.7 billion, along with Rs2.8 billion in contributions from the Sindh government.

The procedural approval of the revised project cost will allow authorities to complete the required formalities and move forward with the remaining work.

The five projects cleared or recommended by the CDWP reflect the government’s focus on improving water supply, urban infrastructure and development services while also tightening project costs through technical scrutiny.