MUZAFFARABAD, Jan 9: The employees and students of Azad Jammu and Kashmir (AJK) University are upset over the reduction in scope of work on a new campus being built with Saudi donation.

The reduction has been decided by Earthquake Reconstruction and Rehabilitation Authority (Erra), on an assumption that the project might face shortage of funds due to “escalation of prices of essential variations which are to be paid to the contractor as per agreement.”

It may be recalled on February 22, 2011, the Saudi Fund for Development (SDF) had conveyed to Erra its approval of the bid of M/S Sambu-Sarco Joint Venture (JV) for reconstruction of King Abdullah campus at Chattar Klas, some 20 kilometres south of Muzaffarabad against Rs5.628 billion.

Acceptance letter (work order) was issued in favour of the builder in May 2011 at Rs5.544 billion.

Under the agreement, the contractor had to build 29 blocks by May 2014.

Sources told Dawn that on November 22, 2012, Erra directed the consultant of the project to reduce the scope of work and prepare a plan for its completion in parts/phases, because “the project was being funded by a fixed grant and any increase may not be entertained by the donor (SFD).”The move has caused serious concern not only among the university officials and students but also among legislators, one of whom, Sardar Mir Akbar Khan of Muslim Conference, has submitted an adjournment motion on the issue in the AJK Legislative Assembly.It may also be relevant to mention here that the projects being constructed under SFD and Kuwait Fund (KF) are supervised by a separate project management and implementation unit (PMIU) based in Muzaffarabad, headed by Mr Mansoor Qadir Dar, a BPS-20 officer of the AJK government.

However, in June last year, Erra renamed the post of PMIU’s project director (PD) as project coordination officer (PCO) and gave its additional charge to Col Khalil Ahmed, an Erra official, in place of Mr Dar, besides bringing a change in the implementation mechanism which is alleged to have affected the progress of the projects.

Shabbir Abbasi, AJKU’s coordinator for the project, told Dawn that out of 29 blocks, seven were yet to be started while work on four under-construction blocks had also been suspended.

According to a summary by Col Ahmed available with Dawn: “Initially Saudi Riyal (SR) 187.5 million were allocated to King Abdullah campus, which were revised to SR253.078 million, equivalent to the award cost of Rs5.544 billion. The amount does not cater for price adjustments owing to eventual statutory increase in prices of specified materials and essential variation which is paid to the contractor as per contract agreement.”

Interestingly, according to the current conversation rate, SR253.078 million is equivalent to around Rs6.576 billion.

Mr Abbasi maintained that any decision regarding the provision of funds could be made by the donor alone and in the presence of donor’s commitment it would be illogical to reduce the scope of this project.

When contacted by Dawn, Col Ahmed maintained: “At the moment, funds are not being shifted and we are looking for other options such as additional grant etc.”

However, when repeatedly asked if the entire allocation in Saudi Riyals would be spent on the project, he said: “We have tasked the consultant to do a study on this count to make it functional within the allocated amount.”

On Wednesday, members of the University Syndicate, representatives of the associations of its teachers and administrative staff held a joint press conference to voice their concerns over the issue.

“It’s unfair (on the part of Erra) to obstruct the construction of King Abdullah campus according to the initial contract,” they said, calling upon Saudi ambassador Abdul Aziz Ibrahim Al-Ghadir to take stock of the situation.

“They are bent upon irritating the donor and ultimately we will be the sufferers,” they added.

Fortuitously, the AJK Assembly is meeting here on Thursday during which Mr Khan’s adjournment motion is most likely to be taken up by it.