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Delay in Completion of National Pride Projects adds Cost Burden of Rs 282 Billion

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Delay in Completion of National Pride Projects adds Cost Burden of Rs 282 Billion
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July 20: Altogether 21 national pride projects, prioritized by the government to attain economic, are currently under construction. However, the delay in timely completion of 12 such projects has added financial burden of Rs 282.43 billion to the state coffers. Had these projects been completed on time or delayed by only a year, the government would not have had to incur such huge amount needlessly. The extra amount spent in the projects could have been utilized to complete the Budhi Gandaki Hydropower Project.

The initial cost estimate of Budhi Gandaki project, which is yet to start physical infrastructure work, is said to be around Rs 260 billion.

The 57th annual report of the Financial Comptroller General’s Office states that the cost of the national pride projects has been increasing due to the delay in completion of the work.

The additional expenses of these projects are more than the capital expenditure of the government announced for the fiscal year 2072/73. The government had allocated a total of Rs 208.87 billion as capital expenditure for FY 2072/73.

The government is finding it quite challenging to manage source of investment to meet the additional cost burden of the national pride projects due to the inordinate delay in completion of the works.

Pushpalal Mid-Hill Highway is one of the national pride projects which has taken a long time for completion.

The project which started in 2064/65 BS (2007/2008 AD) was supposed to be complete in a decade by 2074/75 BS (2017/18 AD). However, the deadline for the project has been extended by five years, which has increased the total cost estimate to Rs 84.33 billion.

The initial cost estimate of the project was just Rs 33.36 billion. Had the government completed the project on time, it could have saved Rs 50.97 billion.

According to the annual report of the Financial Comptroller General’s Office, the fate of other projects is also similar. The Babai Irrigation Project, which was initiated in FY 2044/45 BS more than two decades ago was set to be completed by 2069/70. However, the deadline of the project has been extended by 10 more years.

The cost of the project which was estimated to be Rs 2.87 billion initially has now increased to Rs 18.96 billion. According to the report, most of the irrigation projects have been facing delay in completion.

 

 

 

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