RAWALPINDI, Jan 31: The government has requested the Asian Development Bank (ADB) for extension in the Rs850 million loan for the Nullah Leh expansion project as it is certain of missing the completion deadline of March 31, sources told Dawn here on Thursday.

The sources said the project authorities were pressing for atleast three months extension in the deadline. Though, the sources were confident of an extension, refusal by the bank to oblige could bear huge financial implications for the government due to lapsing of the loan.

Director, Project Management Unit, Brig Habibur Rehman, confirmed that the government was seeking the extension. The Rawalpindi Development Authority chairman, Raja Hamid Nawaz, said an inquiry had been initiated into the causes of the delay.

The ADB had time and again warned the district and provincial governments that there would be no further extension of the loan, incase it lapsed, because it had already lapsed once and had been specially extended in view of the seriousness of the problem following the July 2001 flash floods.

While conveying its apprehensions about the delay, the ADB had been calling for an aggressive and active role of the provincial government to avoid it. However, the authorities had been adamant that the deadline would be met in any case.

Under the project, three bridges were to be constructed on Nullah Leh at Pirwadhai, Dhoke Chiraghdin and Gawalmandi, besides widening, desilting and deepening of the Nullah course. Other works under the project include dredging, stone-pitching, construction of wall along the course of the Nullah and its channelization.

The main cause of the delay was the acquisition and resettlement which, according to the schedule, was to be completed by February 28, 2002. But, till January this year, the RDA had been issuing notices to the affected people to get their claims cleared.

The ADB had infact released the funds for the project on the condition that all land acquisition and resettlement, in accordance with the bank’s guidelines, would be completed by February 28, 2002.

Allegations of irregularities, beginning with flaws in the assessment for land acquisition and later in the execution of civil works continued to mar the project. Some of these irregularities are also being probed by a commission constituted by the Punjab government. A final report is being expected in a couple of weeks.