PESHAWAR: Infrastructure Development Authority of Punjab has terminated agreement with Khyber Pakhtunkhwa government for revamping the district headquarters hospitals and had returned the amount it had received.

Officials at the Infrastructure Development Authority of Punjab (IDAP) told Dawn that it had returned the funds along with accrued interest to the KP government on Feb 28, 2025.

The provincial cabinet of Khyber Pakhtunkhwa, on Nov 27, 2020, had approved the engagement of IDAP for the revamping of non-teaching district headquarters hospitals (DHQs) in the province. Subsequently, the provincial cabinet of Punjab, on Jan 25, 2021, also approved the engagement of IDAP as the executing agency for this project.

The IDAP on Feb 3, 2021, approved the request from the KP government and signed an agreement on July 30, 2021 in this regard, they said.

The project was structured into four phases, during which IDAP carried out extensive site surveys, designs, drawings, and other necessary documentation.

The PC-I for Phase-I was prepared and submitted for approval to the KP government in June 2022. However, the Election Commission of Pakistan imposed a ban on development schemes in January 2023, which delayed the project’s procurement process.

On July 25, 2024, the KP health department informed IDAP that its provincial cabinet had approved the termination of the agreement and instructed the return of funds.

In compliance with established rules and procedures, IDAP deliberated on the matter in its meeting on Aug 19, 2024 and it was decided that the issue be placed before the provincial cabinet of Punjab for consideration.

On October 31, 2024, the provincial cabinet of Punjab revoked its previous approvals granted regarding this project and allowed IDAP to return funds to KP government.

It also resolved that no financial liability should remain with IDAP, officials said.

Since the KP government terminated the agreement before the execution of project works, the revamping of hospitals could not be completed, they said. Based on the factual details outlined above, it is evident that IDAP, as the executing agency, conducted its responsibilities prudently and without any irregularities or lapses throughout the agreement’s tenure, it said.

Published in Dawn, March 14th, 2025