KP govt approves revised Rs4bn for two road projects, eyes WB funding

PESHAWAR: The Khyber Pakhtunkhwa (KP) government has approved additional Rs4 billion for the remodelling of two major tourism infrastructure projects — the Mankial-Swat Road and Thandiani-Abbottabad Road — raising the total cost of the projects from Rs6 billion to Rs10 billion.

The provincial government has decided to seek an additional Rs8 billion loan from the World Bank to meet the additional cost.

According to official documents available with HUM News English, the provincial cabinet was briefed during a recent meeting by the secretary of Communication and Works (C&W) Department, seeking additional funding for these projects, which are being executed under the World Bank-funded Khyber Pakhtunkhwa Integrated Tourism Development (KITE) Project. 

The briefing noted that, based on recommendations from the Provincial Working Development Party (PWDP) and other committees, the consultant NESPAK had revised the project’s (PC-1) cost estimates.

For the Thandiani-Abbottabad Road, the revised PC-1 cost has been increased from Rs2.584 billion to Rs4.488 billion, while for the Mankial-Swat Road, the cost has been revised from Rs3.480 billion to Rs6.218 billion. 

The secretary C&W also requested the cabinet to remove penalties imposed on NESPAK, the consulting firm for the projects.

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He further sought approval for contracts that exceed the original PC-1 costs. Specifically, the Thandiani-Abbottabad Road project’s cost would rise by an Rs1.677 billion, while the Mankial-Swat Road would require an additional Rs2.616 billion. 

After deliberations, the provincial cabinet approved the cost increases for both projects.

According to sources, Provincial Finance Adviser Muzamil Aslam has been tasked with facilitating the acquisition of an additional Rs8 billion loan from the World Bank under the KITE Project. 

Speaking to HUM News English, Muzamil Aslam highlighted the importance of these projects for promoting tourism and economic growth in the province.

He said that all necessary steps would be taken to secure the additional funding and ensure timely completion of the projects.