ISLAMABAD, Oct 24 (APP):Federal Minister for Economic Affairs and Establishment Division Senator Ahad Cheema on Saturday stressed the need for a viable business plan to strengthen the National Highway Authority’s (NHA) financial sustainability through realistic project appraisals and sound financing decisions. The minister was chairing a meeting on the National Highway Authority (NHA) to review measures for developing the Authority’s business plan, the ongoing assessment with an Asian Development Bank …
Achieving NHA’s financial viability a key priority: Ahad Cheema
ISLAMABAD, Oct 24 (APP):Federal Minister for Economic Affairs and Establishment Division Senator Ahad Cheema on Saturday stressed the need for a viable business plan to strengthen the National Highway Authority’s (NHA) financial sustainability through realistic project appraisals and sound financing decisions.
The minister was chairing a meeting on the National Highway Authority (NHA) to review measures for developing the Authority’s business plan, the ongoing assessment with an Asian Development Bank (ADB) consultant, and ways to achieve NHA’s financial viability.
Officials briefed the meeting on the initial findings of the ongoing study with the ADB consultant, said press release issued by Ministry of Economic Affairs. Different models and options were presented to improve NHA’s performance, strengthen its operations and support its financial sustainability.
The Minister emphasized the need for a practical business plan with clear timelines and an assessment of NHA’s capacity. He called for a thorough review of projects under consideration, with PC-I setting out their commercial viability through more realistic indicators to facilitate appraisal by the Central Development Working Party (CDWP).
To support sound project selection and improve NHA’s financial position, Senator Ahad Cheema asked the Authority to classify projects according to their viability and financing requirements, including those requiring government or foreign funding.
He also stressed that initial project studies should clearly assess viability and be shared at an early stage with the Ministry of Finance’s Central Monitoring Unit (CMU) for comments.
The Minister underscored that government or external financing for NHA projects should not lead to a reduction in the Authority’s Public Sector Development Program (PSDP) allocation. He said the Government is not in favor of cutting the allocation, as PSDP funding remained essential to NHA’s development program.
He stressed that commercially, economically and socially viable projects should be prioritized to strengthen NHA’s financial sustainability and help it avoid an unsustainable debt-servicing burden.
Projects that are not commercially viable should undergo a thorough study and be reviewed before any decision is made.
The minister also urged NHA to expedite its work with the ADB consultant, whose input is expected to strengthen project mapping, feasibility assessments and financial analysis.
Secretary Finance Imdadullah Bosal, Secretary Communications Ali Sher Mehsud, the Chief Executive Officer of NHA and other senior officials attended the meeting.
