Lowari Tunnel Project cost risen from Rs 7.98bn in 2004 to Rs 46.04bn in 2022

• The cost of the Lowari Tunnel Project has risen to Rs 46 billion, a 475 percent increase above the original PC-I cost approved in 2004.
• The project’s execution span is 19 years and 2 months (230 months), beginning in 2005 and ending in October 2024.

The cost of the Lowari Tunnel Project has risen to Rs 46 billion, a 475 percent increase above the original PC-I cost approved in 2004.

The initial PC-I of the Lowari Road Tunnel & Access Roads Project, which was approved in 2004, has been altered three times, and the cost has risen from Rs 7.98 billion in 2004 to Rs 46.04 billion in 2022, according to government sources.

The cost of the Lowari Tunnel project has risen over the last 18 years, owing primarily to delays in construction, a lack of funding, and the depreciation of the Pakistan rupee. The project’s execution span is 19 years and 2 months (230 months), beginning in September 2005 and ending in October 2024.

The Lowari Road Tunnel and Access Roads Project is located between Dir and Drosh, linking the districts of Dir and Chitral in Khyber Pakhtunkhwa.

The original project, which called for the construction of an 8.60 km long mini Electric Rail Tunnel to provide a piggyback shuttle service for transporting loaded cargo trucks, passenger waggons, loaded cargo pickups, and passenger waggons from one portal to the other, was approved by ECNEC in 2004 at a cost of Rs.7.98 billion. In January 2009, the 8.51 km Lowari Rail Tunnel broke ground after the whole cut between two portals was finished.

Later, it was decided to convert the already excavated rail tunnel cavity to a road tunnel by increasing the current cross-section of the tunnel by up to 3 metres to accommodate cable ducts, a 2-lane road, and a 2.0 metre emergency lane. The PC-I, which cost Rs.18.13 billion, was approved by ECNEC in November 2011 with this altered scope. It was later decided to widen the carriageway from 6m to 7.5m to ensure safe traffic movement.

Furthermore, as a result of this intervention, the project cost increased to Rs.26.85b, prompting the preparation of a revised PC-I for submission to CDWP/ECNEC. NHA presented reasons for revision for the 2nd Revised PC-I, which included exchange rate fluctuations and increases in market rates for certain cost components.

The ECNEC authorised the project’s second revised PC-I in August 2016 at a total cost of Rs. 26.85 billion. According to the project’s third revised PC-I, the sponsor requested another increase to Rs 46.04 billion from Rs.26.85 billion.

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