The Federal government has decided to construct the Chamber of Commerce building at Gwadar aiming to boost business trade, commerce, and industry in the port city.
This project will be an addition to the already numerous ongoing projects in Gwadar along with those under the umbrella of CPEC.
However, owing to the weak performance of the Ministry of Commerce in executing infrastructure projects, the planning commission has recommended that the execution work of the construction of the Chamber of Commerce building at Gwadar be executed by the Ministry of Housing and Works
“MoC has demonstrated a weak performance in adequately managing its PSDP projects related to infrastructure. Therefore, it is recommended for consideration that the MoC be made the sponsoring ministry, however, the Ministry of Housing & Works be made the executing agency to appropriately align roles according to rules of business and capability”, Member Private Sector Development and Competitiveness (PSD&C) said in his remarks on the Position Paper for construction of Chamber of Commerce building at Gwadar.
Member PSD&C was responding to the response of the Federal Minister for Planning Development and Special Initiative Ahsan Iqbal. In his remarks, the minister had said, “We should get PC-I prepared by suitable federal agency i.e., Board of Investment (BoI) to develop business-related federal government offices and a floor for Chamber because it will be an issue whether we can fund a Chamber out of PSDP”.
In his response, Member PSD&C said, “as per rules of business, organizations, and control of chambers and associations of commerce and industry rests with the Ministry of Commerce. It was also the MoC who presented the concept paper at the CDWP on the day. However, it is understood that the proposed project is purely of a construction/infrastructure nature. Further, MoC has demonstrated a weak performance in adequately managing its PSDP projects related to infrastructure. Therefore, it is recommended for consideration that MoC be made the sponsoring ministry, however, Ministry of Housing & Works be made the executing agency to appropriately align roles according to rules of business and capability”.
The proposed project aims to promote business interests in Gwadar and advise the government on matters relating to trade, commerce, and industry. He stated that only the construction component of the project would be funded by PSDP whereas land would either be provided by the provincial government of Balochistan or Gwadar Chamber of Commerce and Industry.
On June 4, 2022, the Central Development Working Party(CDWP) decided that the CDWP approve the Concept paper with the following directions: Instead of PC-I, a PC-II should be submitted for detailed design, and engineering estimates, etc. The proposed project should be reflected in the portfolio of M/ Housing & Works whereas GDA should execute it”.
However, the issue pointed out by the concerned section while complying with the above directions of Member (PSD&C), it came to the fore that the subject project is reflected in the portfolio of M/o Housing & Works as an approved project with a total cost of Rs. 500.00 million, whereas as per concept paper of the project, CDWP considered it at an estimated cost of Rs. 70.00 million.
Since PSDP 2022-23 is now published and the project is reflected in the portfolio of M/o Housing & Works, therefore, changing sponsoring agency at this stage will further delay the project. Keeping this in view, both Member (PSD&C) and JCE (Op) decided to submit a position paper to CDWP to remove the ambiguity and that M/o Housing & Works may consult MoC and GDA while preparing PC-I of the subject project.
The CDWP was requested to consider the following: M/o Housing & Works being sponsoring agency may consult MoC and GDA and prepare PC-I of the subject project according to MoC and GDA requirements.
