ISLAMABAD: The multi-billion under-construction 10th Avenue is likely to face cost escalation as work on the project continues at a snail’s pace.

The contractor, National Logistic Cell (NLC), has requested the Capital Development Authority (CDA) for a price adjustment formula, stating that its quoted bid rates were practically no longer viable.

The Rs10.2 billion project was launched in 2022 through the Public Sector Development Programme (PSDP) by the CDA.

It was supposed to be completed in March this year, but missed the deadline and still the progress of work is not satisfactory. So far, around 25pc of work has been completed and the CDA recently extended the deadline to December.

Launched in 2022, project was supposed to complete in March this year but CDA has extended deadline to December

CDA officials told Dawn that shortage of funds was the major reason behind the delay as so far less than Rs3 billion had been released for the project. Recently, NLC informed the CDA that inadequate and piecemeal fund allocations was one of the main reasons for the delay besides the slow shifting of utility services from the site.

Similarly, it informed the CDA that because of the delay and price hike, the quoted rates were no longer viable and required revision “or implementation of the price adjustment formula approved by PEC and Ecnec in 2023.”

One of the senior officers of the CDA told Dawn that the project faced slow progress mainly because of inadequate funding.

“The project has so far received only around three billion out of the total Rs10.2 billion. So under these circumstances, how we can get it completed soon,” the officer said, adding for the fiscal year 2023-24 the government had allocated only Rs400 million for the mega project. He said if required funds were allocated in the upcoming fiscal year, the project could be completed otherwise it would face years’ long delay.

He said the project is in progress with slow pace and recently work on the railway bridge has been started near the service road of I-9 and I-10.

The project was started by the PTI government. Initially, the government had earmarked over Rs1 billion, but in the fiscal year 2022-23 only Rs350 million were set aside for it. Then the PDM government released Rs1.3 billion and in the fiscal year 2023-24 only Rs400 million were earmarked.

The project has two phases: in the first phase (currently underway), a 5km road is being constructed from Katarian Bridge on IJP Road to Srinagar Highway near the intersection of G-9 and G-10. In the future, the second phase will be constructed from Srinagar Highway to Margalla Road.

Rimsha Colony, an informal settlement in H-9, will be affected by the project. There are about 1,400 houses and the CDA will have to shift their residents to another place for the construction of the road in the area. But, so far, the civic agency has failed to resolve the issue.

The 10th Avenue is major road of Islamabad, which is part of the master plan of the city. After every one sector, in accordance with the master plan, there is a major road like 7th Avenue crosses between G-6 and G-7, 8th Avenue (also known as Faisal Avenue between G-7 and G-8, and 9th Avenue bifurcates G-8 and G-9. After 9th Avenue, the CDA has failed to construct any new major road while work on the proposed 11th Avenue (now Iran Avenue) is yet to be started. However, an initial phase of Iran Avenue from D-12 to E-11 has been completed and opened for traffic.

Published in Dawn, May 3rd, 2024