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System of Financial Control and Budgeting QUESTION #5643
Question 1
A Departmental Development Working Party (DDWP) is considering a project costing Rs. 55 million that involves 30% foreign assistance. Which authority has the power to sanction this project?
  • DDWP since the cost is below Rs. 60 million
  • CDWP since foreign assistance exceeds 25% of total project cost making DDWP incompetent regardless of cost✔️
  • ECNEC since any foreign assistance requires its approval
  • Financial Adviser since it is a development scheme below Rs. 60 million
Correct Answer Explanation
DDWP sanctioning powers are only for local funded projects and projects involving foreign exchange/foreign assistance up to 25% of total cost. Since foreign assistance here is 30% (more than 25%) the approving forum will be CDWP/ECNEC irrespective of the cost of the project.