5 heads roll in 5 years

‘ERA to miss deadline on ADB contract package’

BILAL HUSSAIN

During the five years of establishment of the Economic Reconstruction Agency (ERA)—special purpose vehicle (SPV) for implementation of externally aided projects— saw five Chief Executive Officers (CEO) since its launch in 2005.
According to the experts and reliable sources in the agency frequent change of heads for such an SPV would mean further delay in execution of the projects funded by Asian Development Bank (ADB). Project completion period for the ADB’s first project to Jammu and Kashmir, Multi-sector Project for Infrastructure Rehabilitation (MPIR) is June 2011. Earlier project completion date was June 2009. Government of India has been requested for extension of project completion period till June 2011 and subsequently GOI has recommended extension to ADB.
The portfolio of CEO, ERA is offered to state officials in addition to their already state engagements. AT present the CEO post is managed by BB Vyas, who apart from the position also holds post of commissioner secretary planning and development. Before BB Vyas the post was handed over to S L Baht, who also at that time held some other post in the government.
Earlier Kashmir Times reported that the major portion of total 83 contract packages were work had been allotted to various contractors, which amounts to package value of Rs 1119.34 crore have not been completed. . At present 69 per cent of the projects have alerts. According to sources in the agency the key reason in delays in completion of the projects is due to the frequent change of head adding that the additional charge also affected the functioning of the projects.
The SPV is still in its infancy and is not prepared to deal with ‘leadership transition’ to minimize the damaging effects of change.
Frequent fundamental change like that of CEO hurts an organization. “I don’t know how an organization gains any type of momentum with such frequent leadership changes, because each one comes in with a new vision or strategy,” said an expert who wished not to be named. But changes in the CEO spot most a times prove catastrophic.
Economic experts here believe that the unmoved approach of the state government has threatened the on time completion of the projects in the state. “The first project funded by the ADB is yet to be completed and has already crossed the set deadline by the funding agency,” said an official ERA wishing anonymity.
Many officials in the agency told Kashmir Times that earlier three CEOs held the full fledged charge of ERA and were full time with the agency.
The first to head the ERA was B R Singh, who was full time with the agency followed by
Vijay Bakaya, who also was full time at ERA and the last to hold the CEO portfolio for full time was Punkaj Jain. After Jain the state government started to send the government officials on deputation to head ERA, which according to the management experts is not good for the organizations.
To mention, the project ‘MPIR loan 2151-IND’ is first externally aided project funded by ADB. The estimated cost of the Project is Rs 1611 crores. ADB loan component is Rs 1125 crore and counter part fund component is Rs 486 crores. Counter Part fund is borne by government of India under PMRP. Project completion period was June 2009. Government of India has been requested for extension of project completion period till June 2010 and subsequently GOI has recommended extension to ADB.