PESHAWAR: The Khyber Pakhtunkhwa (KP) Planning and Development Department (P&D) has made European Union’s approval mandatory for utilization of the remaining Rs2 billon of the Community Driven Development Program project (CDLD).
However, the Local Government Department has made it clear that the EU can also claim back the unused fund if the matter is raised with the donor. The CDLD project was sponsored by the European Union although contract with the EU has expired two years ago and the remaining project was moved carried out by the KP LG department.
The Khyber Pakhtunkhwa government launched the mega project Community Driven Development Program (CDLD) for small projects with the help of local population in Malakand Division. But later on, it was extended to Swabi, Nowshera, Haripur, Batagram and Torghar districts of the province. Currently, the program is being implemented in 12 districts.
The estimated cost of the project was more than Rs15 billion and most of the cost was provided by the European Union in the form of grant. Though the project contract with the European Union had expired two years ago, the LG Department continued running the project but now the P&D raised an objection against the use of the remaining Rs2 billion of the project.
The sources said that the EU has authorised the Local Government Department to use the fund but the P&D insists on approval from the donor.
According to sources in the Local Government Department, the donor can ask for refund of the funds if the grant was not utilized within the stipulated time. The sources pointed out that when the grant was provided, exchange rate of US dollars was Rs104, fearing that now if the donor asks for its return, the government would have to return the funds at the rate of Rs240 per US dollar.
According to the sources, the P&D has so far not granted permission to the LG Department to utilize the fund.
