ISLAMABAD: The government has agreed with the Asian Development Bank (ADB) to revise down the cost for establishment of an Integrated Transit Trade Management System (ITTMS) to $300m.

ADB had committed $223m for the project, primarily through its own resources, and also included other development partners.

However, in August 2015, ADB’s country-director disclosed that the cost of the project had been increased to $320m and it would be a loan, not a grant.

The increase in the cost and criticism from the relevant stakeholders forced Finance Minister Ishaq Dar to constitute a committee to revisit the details of the project and submit a revised PC-1.

On Monday, the finance minister chaired the fifth meeting of the Steering Committee on ITTMS to review its recommendations.

The meeting was attended by Commerce Minister Khurram Dastagir Khan, Country Director ADB Werner Liepach and senior officials of various ministries and departments.

Federal Board of Revenue Chairman Tariq Bajwa informed that the cost has been revised down to $300m from ADB’s proposed $320m.

An official privy to the meeting told Dawn that the proposed project cost is still too high.

He said the committee has failed to convince the ADB to lower the project cost which has to be returned with interest to the donor.

The ITTMS project was included in PSDP for fiscal year 2014-15. FBR presented the PC-I in August 2014 to the Planning Commission. Pre-Central Development Working Party (CDWP) meetings in this regard were also held in October 2014.

The revised PC-1 was also submitted while the Technical Evaluation and Project Appraisal had been completed. The FBR had designated focal persons to liaise with local administrations at Torkham, Chaman and Wagah borders. However, now this whole process will be revised as per new estimates.

Based on the deliberations among the stakeholders, FBR chairman said that the four-member committee proposed that competitive bidding for Chaman and Torkham Border Crossing Points (BCP) may be held between the National Logistics Company and Frontier Works Organisation. The contract will be given to either of the two agencies for security reasons.

For Wagha, international competitive bidding may continue as planned, the chairman FBR added. The Steering Committee after detailed deliberations approved these proposals.

In January 2014, Prime Minister Nawaz Sharif had constituted a 13-member steering committee, headed by Dar to suggest solutions for the establishment of land ports.

Dar asked FBR’s chief coordinator to impress upon all relevant agencies to expedite work on the ITTMS project and said that the proposal on the project should be submitted to Executive Committee of the National Economic Council in its forthcoming meeting for final approval.

Published in Dawn, September 1st, 2015

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