Federal Govt withholds payment for RBOD project

Karachi: The federal government has withheld payment of Rs 17 billion allocated for the Right Bank Outfall Drain (RBOD) project in view of the prevailing economic situation, it is reliably learnt. Sources said that the uplift work of the project had been halted due to the non-payment of funds, while the company Frontier Works Organisation (FWO) carrying out the work at the site, is now urging of the provincial government to clear its outstanding dues of Rs 3 billion.

Besides, the company has also moved some of its 700 heavy machinery from the site of the project and it seems the federal government wants to abandon the project worth billions of rupees, official sources at the Irrigation and Power Department told Business Recorder on Thursday.

The project had to be completed by the end of 2008, but it was delayed due to the non-payment of funds since the last couple of months, they said, adding that the provincial government has also asked the center to extend the date of completion of the project to 2010.

According to officials, the RBOD project was initiated by the previous government on the right side of Indus River, from Karampur, Sehwan Sharif to Gharo to release some 3525 cusecs of poisonous water of Manchar Lake to the Arabian Sea at an estimated cost 29.20 billion.

'The federal government has released only 2.30 billion to the Sindh government from 2002 to June 2007-08 under the Public Sector Development Programme (PSDP). Soon after the new government took over, the center had withheld payment citing reasons of economic crises,' they added.

They say about 700 heavy machinery was employed at the site of the project for only 60 percent of the work was done. The irrigation and power department had time and again written to the center for the release of Rs 17 billion funds, however, the center had agreed to release only Rs 4 billion, but that too it failed to release it.

'Recently, the irrigation and power department again wrote to the federal government to release the funds so that the remaining work of the project could be completed', the officials pointed out. The Secretary Irrigation and Power Shuja Ahmed Junejo was repeatedly approached on his cell phone and office numbers, but he was not available for his comments.