The Economic Affairs Division (EAD) has declared that $2.3 billion out of $3.3 billion in energy-related projects are problematic.
EAD has disclosed this in the 3rd follow-up review meeting of the federal energy sector of the National Coordination Committee on Foreign Funded Projects (NCC – FFP)
The Federal Minister for Economic Affairs Sardar Ayaz Sadiq chaired the 3rd follow-up meeting of the National Coordination Committee on Foreign Funded Projects (NCC-FFP) at the Ministry to review foreign-funded Federal Energy Sector projects.
The meeting was attended by SAPM, Additional Secretary Energy, SMBR (Punjab & Sindh), ACS (KP), CEO’s of implementing agencies.
The Minister for Economic Affairs welcomed the participants and stressed the importance of the Energy Sector of Pakistan. He stated that Energy is arguably one of the most important inputs for economic growth to sustain industrial and commercial activities.
Joint Secretary (EC), briefed the committee on the background and purpose of the meeting and particularly highlighted the problematic and moderately satisfactory projects and issues thereof. He apprised the Committee that EAD is managing an ongoing portfolio of $34.8 billion in foreign-funded projects for various sectors of the economy. Out of the total portfolio, $15 billion (43%) is considered problematic. The share of Federal Energy projects is $3.3 billion, of which $2.3 billion is rated as problematic.
The Minister for Economic affairs emphasized the need to address the issues of problematic projects on an urgent basis, especially those facing chronic delays so as to pace up disbursements and progress. He stressed the need for setting milestones/deliverables with timelines by the focal ministries and implementing agencies for better monitoring, and preventing time & cost overruns.
Secretary EAD stressed the need for regular follow-up monthly meetings by the focal ministries with executing agencies and stakeholders for due monitoring and prompt resolution of issues.