Concern is shown by some economists and analysts regarding the reduction of mega projects in Sindh in the forthcoming Public Sector Development Programme. It is feared that Sindh will have a very minute share in the overlay of large projects otherwise considered as the “real” indicators of development.
Irrespective of the relevance to the prevailing sectoral and contextual conditions, announcement of a mega project is usually considered as a government’s timely action aimed at drastic improvement. Absence of mega projects is flagged as a sign of neglect from the government. A development programme is normally considered incongruent if it does not contain projects of large spendings. Motorways, canals, power plants, dams, treatment plants, highways and the like, all fall in this category. Using this approach to gain popular support, the government never stops short of announcing large-scale projects including those that cause the most severe of controversies.
Launchings of two mega projects were witnessed during the past few weeks; the Lyari Expressway in Karachi and the Thal Canal project in Southern Punjab. While the former is urban-based and the latter rural-oriented, they bear similarities in concept and details. Absence of a proven scientific analysis, dubious feasibility, lack of consensus among the participating actors (whether to have the project or not), an eventual path leading to donor’s involvement, alleged lack of transparency and fair play in the award of work are the common denominators in respect of both projects. The projects have cost overlays running into billions of rupees. Though the projects are in their initial stages, they are reminders of a very strong trend that envisages development only through mega projects. This particular approach is adequately visible in the overall developmental practice in the country. Whether a democratic government or dictatorship, they keenly focus on mega projects to spend their allocated sum of various public sector development funds.
Generally referring, a mega project is defined as an enterprise of large scale, magnitude and cost overall running into billions of rupees. Although this is too simplistic a manner to describe a mega project, in actual terms this is what they normally happen to be. In most of the cases such projects appear to be a drag on the development budget especially when one single project would account for one-third or one-fourth of the total kitty! However governments have very strong reasons to initiate such projects despite their technical, financial or managerial handicaps.
Mega projects are conceived as high budget affairs. For instance, the once proposed Karachi Mass Transit Programme was estimated to cost Rs66 billion ($1150 million) for elevated exclusive corridors stretching up to 24 kilometres. Similarly the Lyari Expressway project would cost Rs. 4 billion while the Thal Canal project is estimated to cost Rs. 30.4 billion. Obviously large capital overlays enhance the financial control of the ruling cadres who also derive the flexibility of diverting this money to other avenues of expenditure.Besides the controlling authority, department or project management unit acquires several prerogatives. Awarding sub-contracts of enormous sums, laying down procurement lines of articles of all kinds, awarding petty construction contracts, employing staff, technocrats and labourers, choosing locations and sub locations to benefit (or not to benefit) any particular community or their leaders are some of the direct measures of controls that evolve from a mega development scheme. In the absence of effective monitoring mechanisms, the wrongdoings of the project management remain unnoticed causing harm to the affected people without any redress. Recently while evictions were taking place along the corridor of Lyari Expressway, it was found that the staff of the management extorted sizable sums of money from such house owners whose property was falling at the borderline for the stipulated corridors. Helpless house owners thought it to be convenient to save their abodes by paying the hefty bribes, though less than the value of their residences.
As a routine practice jointly adopted by the elected and self- imposed regimes, high visibility mega projects are considered as the icons of efficient performance. Despite their immediate usefulness or long-term sustainability, such physical structures are considered viable that can be seen or prominently noticed by every one. In the urban context, high-grade motorways, transit corridors, bridges, pylons etc. constitute images of development. In the sub-urban and rural sectors, power plants, waterways, canal ways are such image-boosting entities. Usually infrastructural components which are largely concealed in the earth surface are not regarded as the right example. This also applies to projects of medium and small scale. For instance, this country has abundance of left-out school buildings which were constructed as per normal prescription but never utilized due to lack of feasibility. For simple villagers they however serves as a bad example of development.
Donors, especially the development finance institutions, function only when they successfully lend to high value projects. They some time lure the target administration to launch a funded project or obtain a share of it which is not even needed at any section. Otherwise they keep lobbying the government circles to push approval of such projects which would require donor’s assistance. It is also interesting to note that they mostly succeed in their designs.
Whether or not the project genuinely carries a priority, the donors push for the sanctioning of corresponding loan from their agency. in 1998, the Asian Development Bank (ADB), in consultation with the Karachi Water and Sewerage Board (KWSB) succeeded in pushing through an ill-founded project of sewerage treatment in Landhi / Korangi, Karachi. the project included a sewerage treatment plant of $100 million. The loan that was sanctioned amounted to $70 million while the provincial government was to provide $26 million and the rest to be provided by the beneficiaries of the project. After a thorough review conducted by a group of public-spirited professionals, the project was found to be technically faulty and financially exaggerated. Through an organized effort, the group of professionals prepared alternative plans for the project at one-tenth of the cost. On technical grounds the government high ups were convinced to cancel the worthless loan agreement.
A major reason for over-stress on the mega projects is the bias of technocrats towards such projects. Architects, engineers, financial experts and the like, all normally support mega projects. It serves them well in many ways. First, the rate of consultancy and supervision rises sizably to the benefit of consultants. Second, it satisfies the professional ego of consultants who have been associated with such projects. Third, it creates the viability of obtaining more projects of similar nature in the future. And fourth, since the consultants are only concerned about the execution stage, they seldom care to look into the future about the worth and sustainability of such projects. Such a syndrome has given rise to many isolated stand-alone type projects not necessarily beneficial for the people. Residents of Orangi in Karachi will not forget the pomp and show with which a huge water reservoir, constructed at a cost of Rs. 130 million, was inaugurated in a locality where there has been no water to store. The tank still stands high atop Orangi hills as a sad reminder of precious development funds wasted due to ill thought-out planning and development procedures.
Mega projects normally possess a very sizable overlay of operation and maintenance costs which is a recurring head of expenditure. As the number of projects increase the O&M costs also proportionally increase. In some cases such as roads, highways and bridges, repairs and alterations also add to the process. The government finds it difficult to raise adequate funds to carry out this task on their own. Thus the conditions of the projects start deteriorating due to neglect and often-irreparable damages appear causing losses of precious funds and efforts.
In addition to the above account, there are several commonly prevailing constraints associated to mega projects usually initiated. It is often found that these projects are not in relationship with the corresponding realities of the context. For instance, in Karachi, it is an open secret that storm water drains are almost entirely converted into regular sewerage outlets. They siphon the large portion of the raw sewage directly into the sea. However, instead of realizing this fact, plants are constructed which are neither geographically congruent to this fact nor technically appropriate to collect the sewage for treatment. Other factor in this respect is that the conceptualisation, design and decisions for implementation remain a black box operation without participation of even the directly affected persons. The Thal Canal Project is a grave citation. The project which is assumed to create a major ecological impact on the lower riparian of Sindh, has been dealt in entire secrecy.
It is not that mega projects are totally useless.Obviously for balanced development of the sectors and contexts, projects of all scales need to be initiated. In fact, it is the manner in which such projects are conceived, designed and executed that need to be improved for the real benefit of the society. Technically, mega projects should possess a corresponding link with the small and medium scale projects / realities of the sector. This will create a sense of initiative amongst individuals, small groups and even local bodies to address their respective developmental issues. If sewerage treatment plant is to be built, it should be rationally connected to the disposal channels as tertiary, secondary and primary scales to that the function of treatment is efficiently performed. Socially, the creation and development of such projects should evolve from the articulate understanding of the need of the target population. For instance, if in an urban centre, improved roads with an up-to-date fleet of buses can perform the task of urban transportation satisfactorily, the need for elevated mass transit does not arise.
In another situation, if a city is in need of improved power supply distribution system and it is given a new cultural complex from the allocation, the developmental issues would remain at stand still. Financially, there is no harm in obtaining funding from any of the available sources. However exaggerated costs and unrealistic estimates should not be made the basis of any loan parleys. Besides loan should not be negotiated around a pack of unwanted conditionalities from the lending agency. This deprives the initiators and implementers of independence of decision-making particularly related to fixing priorities. And administratively, it must be ensured that the cross-section of the society for whom the project is targeted should be made to participate in each and every stage of the execution and post-construction running of the project.
Concern is shown by some economists and analysts regarding the reduction of mega projects in Sindh in the forthcoming Public Sector Development Programme. It is feared that Sindh will have a very minute share in the overlay of large projects otherwise considered as the “real” indicators of development.
