219 executive borad meeting of nha1
TRANSCRIPT
-
8/9/2019 219 Executive Borad Meeting of NHA1
1/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
1
NATIONAL HIGHWAY AUTHORITYSecretariat Section
CONFIRMED MINUTES
Subject:- 219th
Meeting of the NHA Executive Board Held onJuly 24, 2012 at Islamabad
1. Introduction
1.1. The 219th meeting of the Executive Board of the National
Highway Authority was held at 1030 hours on Jul 24, 2012 at the
NHA Head Office Auditorium, Islamabad. The Chairman NHA Syed
Muhammad Ali Gardezi presided.
1.2. All Members attended. List of participants is at Annex-A.
1.3. The meeting commenced with recitation of verses from the
Holy Quran and Urdu translation.
2. Opening Remarks - Chairman NHA
2.1. The Chairman extended warm welcome to the participants
and thanked them for sparing time for NHA. The last meeting was
held on Jun 11, 2012.
2.2. The Chairman greeted Mr Zafar Abbas Lak, IG (NH&MP)
on joining the Executive Board as its Member. The Board would
definitely benefit from immense experience and knowledge that he
brings with him.
2.3. The Chairman intimated that the Member (Construction),
Mr Aurangzeb Khan superannuated wef Jul 6, 2012 and in his place
Mr Yousaf Ali Khan has been appointed. Previously, two Members
(Construction) were positioned for the projects in North & South buthenceforth there would be only one Member (Construction).
2.4. The Chairman also provided an update on the status of
BOT concession for upgradation of 4-lane Karachi - Hyderabad Super-
highway into 6-lane Motorway (M-9). The Concessionaire viz M/s Bina
Puri Pakistan (Pvt) Ltd was to achieve financial close within 6 months
ie by Jul 16, 2012 with a grace period of 45 days. The Concessionaire,
having failed to achieve this target within the given date, has sought
six months extension. The Concessionaire has, however, submittedproject design and attended to some other requirements.
-
8/9/2019 219 Executive Borad Meeting of NHA1
2/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
2
2.5. M/s Bina Puri has been informed that the arguments put
forward by them for grant of extension such as global financial
situation, law & order status in Pakistan, traffic disruption on M-9and delay in RoW acquisition are not convincing enough. The global
financial situation and law & order in Pakistan remain more or less
the same as was the case prior to processing and signing of the BOT
concession. Moreover, M-9 has not encountered any traffic disruption.
Mutation of land in NHA’s favor is also more than 90% complete and
the minor remaining land acquisition pertained to interchanges only
and this is also in final stage. None of these issues could have
hindered achievement of financial close, as contended.
2.6. The request of M/s Bina Puri for extension of date for
financial close has, therefore, been regretted. Alongside, they have
been asked to furnish details of the efforts made by them for achieving
the financial close, as NHA expected at least approval from the banks
for committing finances for construction of M-9, whereas, actual funds
could be released at a later stage.
2.7. The JS (MoC) remarked in case M/s Bina Puri ultimately
fail to achieve the financial close and NHA is compelled to terminate
the concession agreement, it should be ensured that the matter is very
wisely handled & that no claims accrue against NHA. The Chairman
appreciated the suggestion and stated that NHA is fully alive to the
situation. To ensure that NHA’s response is legally defensible, the
Authority’s legal counsel and the Head IPDF (Infrastructure Development
Facility) were also consulted before sending the same to M/s Bina Puri.
2.8. The Chairman, dilating upon funding status, remarked
that NHA was expecting release of additional funds / supplementary
grant for its projects prior to close of FY 2011-12 but neither funds
were made available by the GoP nor the loans expected from the
Governments of Khyber Pakhtunkhwa and Balochistan materialized.
However, NHA’s PSDP allocation of Rs 50.727 billion (Rs 26.124 billion
FCC and Rs 24.602 billion LCC) for 2012-13 is quite sufficient and the first
tranche for this year is expected to be released soon.
-
8/9/2019 219 Executive Borad Meeting of NHA1
3/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
3
2.9. The Chairman, however, observed that project-wise
allocation might be problematic. If certain projects were not moving at
the desired pace but funds are released, NHA would not be able to
divert funds for projects showing fair progress. Therefore, NHA istrying to convince the Planning Commission to review the decision
regarding project-wise release of funds; however, NHA would ensure
that each province gets funds equal to its allocation for FY 2012-13.
2.10. The Chairman stated that in a recent Board meeting, the
worthy Additional Finance Secretary had pointed out that it was of no
use if the Annual Maintenance Plan is presented at the end of the
financial year. In deference to the Board’s desire, the AMP 2012-13
has been prepared at priority and will be presented in today’s meeting.With implementation of this plan and simultaneous commencement of
Flood Emergency Rehabilitation Projects (FERP), the overall situation
of NHA network in various regions would be considerably improved.
2.11. The Chairman added that since the condition of NHA
roads in Sindh is worst, NHA would be according special attention to
that province. The fact that work on JICA assisted Sehwan - Ratodero
ACW Project (N-55) and the ADB assisted Sukkur - Jacobabad ACW
Project (N-65) is moving at quite a brisk pace will also help improve
overall situation of NHA network in Sindh.
2.12. The Chairman also talked about GMs Coord Conference;
which was also witnessed by the Minister and Secretary MoC, held on
Jul 12, 2012. The aim was to emphasize upon all Regional GMs that
the roads need to be maintained at an optimum level to bolster NHA’s
image as a developer & custodian of national highway network and
that any compromise on quality and output would not be tolerated.
2.13. The Chairman added that Monitoring Teams headed by
reputed officers of caliber were constituted for overseeing operation &
maintenance activities of each region and based on their feedback
various corrective actions have been taken. One key decision taken
during GMs Coord Conference was that tenders for all procurements
will be issued on the 1st Thursday of each month and opened on the
last Thursday of the month. On both occasions, the Head or a Member
of the Monitoring Teams would be essentially present.
-
8/9/2019 219 Executive Borad Meeting of NHA1
4/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
4
FORMAL BOARD PROCEEDINGS
3. Agenda Items
3.1. The Secretary NHA stated that 16 x working papers were
distributed in two volumes on Jul 10 & 20, 2012 respectively. Subject-
wise distribution is as follows:-
Matter No
a. Minutes 2
b. Award of Works 4
c. Policy Issue 1
d. Revised PC-I 2
e. AMP 1
f. Toll Issues 2
g. Financial Issue 1
h. Admin Issues 3
Total 16
3.2. The Secretary NHA added that working papers on thefollowing subjects would be tabled as additional agenda items, if
permitted by the Board:-
A1.NHA’s Composite Schedule of Rates (CSR)-2011
(Presentation by GM-Design)
A2.Issuance of Tender Documents to National Logistic Cell (NLC)
for NHA Projects
A3.
Bahawalpur Toll Plaza : Relief in payment of monthly
installments due to financial losses
3.3 The Chief (T&C) remarked that it is desirable if instead of
a presentation, a formal working paper is circulated with the agenda
for the next Board meeting on Item “A1”.
3.4. At the end of meeting, working paper for only Item “A2”
was presented and discussed because of paucity of time.
-
8/9/2019 219 Executive Borad Meeting of NHA1
5/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
5
4. Agenda Item 1
Confirmation of Minutes - 217th Meeting of the
Executive Board Held on Jun 4, 2012
4.1. The Secretary NHA solicited confirmation of minutes of
the 217th Executive Board meeting held on Jun 4, 2012 conveying
that the same were circulated on Jul 10, 2012 and no written
comments / observations have been received from any Member.
4.2. Minutes were confirmed with some amendments
suggested by the Chief (T&C).
Decision
4.3. The Executive Board confirmed minutes of 217th meeting
held on Jun 4, 2012 with following amendments:-
a. In opening remarks, Para-2.6, line 6:-
For: It was jointly decided by the Dy Chairman
Planning Commission & the Minister for
Finance that only
Read: It was decided by the Annual Planning
Coordination Committee that only
b. In opening remarks, Para-2.7, line 5:-
For: NHA will have the authorization to re-
appropriate funds from
Read: NHA will now be required to re-
appropriate development funds as per laid
down procedure from
c. In Agenda Item 2 titled “Amicable Settlement of
Dispute: Termination of Contract of Lowari Tunnel
Project (LTP),” Para 5.26 (b):-
-
8/9/2019 219 Executive Borad Meeting of NHA1
6/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
6
For: Basis and detail of escalation predicted for
next 5 years and average past projection
of escalation.
Read: Basis and cost of escalation required for
balance work over the proposed future
time frame and average trend of past
escalation paid so far.
Action By : Secretary NHA
5. Agenda Item 2
Confirmation of Minutes - 218th (Special) Meeting of
the Executive Board Held on Jun 11, 2012
5.1. The Secretary NHA solicited confirmation of minutes of
the 218th (Special) Executive Board meeting held on Jun 11, 2012
conveying that the same were circulated on Jul 10, 2012 and no
written comments/observations have been received from any Member.
5.2. Minutes were confirmed with one amendment.
Decision
5.3. The Executive Board confirmed minutes of 218th (Special)
meeting held on Jun 11, 2012 with following amendment in Agenda
Item 2 titled “Amicable Settlement of Dispute: Termination of Contract
of Lowari Tunnel Project (LTP),” Para 3.13 (b):-
For: Basis and detail of escalation predicted for next 5
years and average past projection of escalation.
Read: Basis and cost of escalation required for balance
work over the proposed future time frame and
average trend of past escalation paid so far.
Action By : Secretary NHA
-
8/9/2019 219 Executive Borad Meeting of NHA1
7/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
7
6. Agenda Item 3
Award of Works: Improvement / Rehabilitation of OldGT Road in Renala Khurd (Km 0+000 to 3+787.95)
Introduction - Working Paper
6.1. Directive / Deposit Work.
a. Subject project is based on Prime Minister’s Directive
No 2624-A sent by the PM’s Sectt on Mar 9, 2011.
b. Project entrusted to NHA for implementation as
“deposit work” vide PM’s Sectt (Public) UO No PMDIR
/2141/DS(Imp)/PAW/10 dated Nov 2, 2011,
6.2. Scope of Work (3.788 km).
a. Typical x-section (in fill):-
Width Meter
i. Carriageway : 7.3
ii. Shoulders (both sides) : 2.5
b. Following layers have been recommended to be laid
over existing pavement layers:-
Pavement Layer cm
i. Asphalt Wearing Course : 5
ii. Asphalt Base Course : 8
iii. Water Bound Macadam (WBM) : 25
c.
In sections (urban area) where pavement has beenwashed away or is deteriorated at least 15 cm thick
sub-base will be provided prior to lying of WBM.
6.3. Source of Funding/PC-I/Engineer’s Estimate.
a. The Prime Minister has approved provision of Rs
99.982 million as per cost estimates prepared by Pak
PWD. As the project is a deposit work, the Cabinet
Division will release this amount to NHA from PWP-II
of PSDP.
-
8/9/2019 219 Executive Borad Meeting of NHA1
8/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
8
b. The Executive Engineer, Project Civil Division, Pak
PWD, Sahiwal is responsible to provide the approved
PC-I, which is awaited.
c.
Estimated cost is Rs 98,735,315/- (CSR 2009 + 9.1%)excluding Bill No 7.
6.4. Pre-qualification/Tendering Process.
a. PQ notice was published in press and uploaded on
NHA & PPRA websites on Feb 16, 2012. Twenty two
(22) firms applied and twelve (12) fulfilling the given
criteria qualified.
b.
Invitations for bid were issued to the pre-qualified
firms. Eleven (11) firms purchased the bidding
documents but only five (5) submitted technical and
financial bids on scheduled date viz Apr 12, 2012.
6.5. Summarized Status.
Messers’ QualifiedDocumentsPurchased
BidSubmitted
a. CALSONS
b. Chaudhry --
c. FWO --
d. Luqman
e. NKC --
f. RMCC
g. SKB
h. Sachal -- --
i. SARCO-SIAC (JV)
j. SCC --
k. SMC --
l. Usmani --
Messers’ Legend
a. Ch Abdul Latif & Sons CALSONS
b. Chaudhry Construction Chaudhry
c. Frontier Works Organization FWO
d. Luqman Brothers Construction Co Luqman
e. Nisar Khan & Co NKC
f. RMC Construction Co RMCC
g. Saadullah Khan & Brothers SKB
h. Sachal Engineering Works Sachal
i. SARCO – SIAC (JV) SARCO-SIAC (JV)
j. Standard Construction Co SCC
k. Sultan Mahmood & Co SMC
l. Usmani Associates Usmani
-
8/9/2019 219 Executive Borad Meeting of NHA1
9/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
9
6.6. Bid Opening. Bids were opened on Apr 12, 2012 by the
Bid Opening & Evaluation (BO&E) Committee constituted in
accordance with NHA Code in the presence of the bidders’ Reps.
6.7. Financial Bids. Financial bids of qualified bidders wereopened in the presence of BO&E Committee on the same day.
Following comparative position emerged vis-à-vis the Engineer’s
Estimate of Rs 98,735,315 (CSR-2009 + 9.1%) on all Bills except Bill No 7:-
Lowest
RankingContractor (M/s)
Announced
Bid (Rs)
Corrected
Bid (Rs)Variation
1st RMCC 123,231,715 123,231,715 +24.81%
2nd CALSON 133,880,764 134,029,264 +35.75%
3rd SARCO-SIAC (JV) 144,522,958* 144,522,958 +46.38%
4th SKB 158,778,523 158,778,523 +60.81%
5th Luqman 169,324,562 169,324,562 +71.49%
* Note. After 2 % rebate. Original bid was Rs 147,431,590.
6.8. Recommendation. The Tender Acceptance Committee has
recommended award of works to the lowest bidder M/s RMCC.
6.9. Deliberations Concerning Financial Constraints.
a. Allocation of funds for this deposit work is Rs 99.982
million but the lowest bid is Rs 123.231 million.
Therefore, Letter of Acceptance shall be issued to the
lowest bidder as per available funds only.
b. A Letter of Intent was issued to M/s RMCC about the
funds constraint and consequent reduction in scope
of work up to Rs 90 million. Balance Rs 9.982
million to be kept for establishment and supervision.
c. M/s RMCC submitted an undertaking not to make
any cost claim on NHA against the reduced scope of
work and cost.
6.10. Proposal. NHA Executive Board is requested to approve:-
a. Award of work for “Improvement / Rehab of old GT
Road in Renala Khurd (Km 0+000 to 3+787.95)” to thelowest bidder M/s RMCC for Rs 123,231,715/-.
-
8/9/2019 219 Executive Borad Meeting of NHA1
10/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
10
b. The Letter of Acceptance for reduced scope of work
limiting the contract price upto Rs 90 million will be
issued initially and scope will be enhanced to
original level on availability of balance funds.
Board’s Deliberations
6.11. The Member (Planning) presented details.
6.12. The MoC had conveyed certain written observations on
this agenda item. Tabulated response rendered by the Planning Wing
in respect of each observation is at Annex-B.
6.13. The AS (Finance) observed that instead of piecemealimplementation, it is desirable if the total funds are arranged now and
the project constructed in toto so that no escalation / litigation issues
are encountered. Moreover, it also needs to be explained as to how the
scope of work will be reduced.
6.14. The Chief (T&C) made the following observations:-
a. Piecemeal implementation implies that the PM’s
directive has not been properly followed and fullyobeyed. The scope be reduced only if the PM’s
Secretariat is informed and consent obtained.
b. Why the single stage two envelopes system, which
had proved quite successful in securing competitive
bids, was not followed in this case? NHA should not
be influenced by the contractors who pursue their
own motives / benefits.
c. Since the PC-I is still awaited from Pak PWD, it
should be ensured that the road is constructed
according to NHA specifications and not the PWD
specifications, which are less.
6.15. The Member (Planning) clarified that an undertaking has
been obtained from the contractor regarding reduction in scope of
work due to non-availability of full funds and that no complications in
this regard are envisaged. The scope has been reduced by decreasingthe project length proportionate to the availability of funds.
-
8/9/2019 219 Executive Borad Meeting of NHA1
11/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
11
6.16. The Chairman stated that project scope will be enhanced
as soon as balance funds are received. He clarified that NHA is
receiving numerous instructions regarding execution of projects
initiated by different MNAs / Senators and in each case the political
dignitary is requested to arrange funds otherwise NHA would not beable to implement their scheme.
6.17. The Chairman added that in this case too, the MNA
concerned has been taken on board and advised to pursue the case
for provision of balance funds with the relevant quarters and he is
already working on this issue. He also quoted the example of Okara
Bypass Interchange Project where the scope has been reduced from Rs
297 million to Rs 21 million for an already awarded project because of
non provision of requisite funds.
6.18. The Chairman also stated that the observation that NHA
should not be influenced by the contractors during the procurement
process is very valid and all possible measures are being taken to
ensure transparency, fair-play and maximizing competition.
6.19. The Chief (NTRC) enquired as to who will approve the PC-I
once it is finalized by Pak PWD. The Member (Planning) clarified that
the tendered price will be communicated to Pak PWD Sahiwal forprocessing of the PC-I through their prescribed channels as is done for
all deposit works.
6.20. Matter was discussed and cleared.
Decision
6.21. The Executive Board approved award of work for
“improvement / rehabilitation of old GT Road in Renala Khurd (Km
0+000 to 3+787.95)” to the lowest bidder M/s RMC Construction
Company at their quoted price of Rs 123,231,715/- (Rupees one hundred
& twenty three million, two hundred & thirty one thousand, seven hundred &
fifteen) only; which is +24.81% the estimated cost of Rs 98,735,315/-
(CSR-2009 + 9.1%) on all Bills except Bill No 7.
6.22. In the initial phase, the scope of work would be limited to
the contract price upto Rs 90 million and will be enhanced to original
level at a later stage on availability of balance funds.
Action By : Member (Planning)
-
8/9/2019 219 Executive Borad Meeting of NHA1
12/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
12
7. Agenda Item 4Review/Settlement of Frequent Issues Pertaining to“Form” of Bid Security & Performance SecurityDuring Procurement of Works
Introduction - Working Paper
7.1. Bid Security. It is kept to ensure seriousness of bidders
during the bid validity period and for small period ahead (usually 28
days) as a mandatory part of all procurements. It can be furnished by
the bidders in following customary formats:-
a. Deposit at call.
b.
Bank guarantee issued by a scheduled bank inPakistan.
c. Insurance bond issued by an insurance company at
least having “AA” rating from PACRA/JCRA.
Note. Another form known as “Bid Securing Declaration” is alsoused as an option in foreign funded projects.
7.2. Performance Security. It is also mandatory part of all
procurements kept to ensure performance of contractors during
project execution. It can also be provided by the contractors in the
customary formats described in “a” to “c” above.
7.3. Executive Board’s Decisions. The issue of “Form” of bid and
performance securities had been deliberated by the Board on several
occasions since Sep-2009:-
a. The acceptance requirement of bid / performance
securities was reduced from “AA” rated insurance
companies to “A” including “A+”, “A-”, “A” & “A1” but
reinsurance arrangement from “AA” rated companies
(Ref: Executive Board’s 178th meeting of Sep 5, 2009).
b. The decision was reviewed and NHA did not allow
securities of even “AA” rated insurance companies
and restricted the bidders for securities/ bonds only
from scheduled banks of Pakistan on NHA’s panel(Ref: Executive Board’s 201st meeting of Jan 20, 2011).
-
8/9/2019 219 Executive Borad Meeting of NHA1
13/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
13
c. The CAP (Contractors Association of Pakistan) agitated the
decision at “b” above pleading that it was against
PEC (Pakistan Engineering Council) Guidelines; which
NHA is bound to follow. APCA (now CAP) also movedthe court-of-law against NHA’s decision (Ref: Executive
Board’s 202nd meeting of Mar 17 & Apr 4, 2011).
7.4. Preference of Bidders and NHA.
a. Bidders/contractors prefer to submit insurance bond
mostly issued by insurance companies having “AA”
rating being less costly.
b. NHA & most other employers prefer bank guarantee
for both bid and performance securities because of
better encashment mechanism. However, due to
codal / legal requirements and, at times, to ensure
competition in bidding process, the employers accept
insurance bond as well.
7.5. Points for Consideration.
a. NHA may devise a uniform and consistent policy in
procurement process regarding acceptable “Form” of
bid and performance securities after getting all
stakeholders on board. The policy should not be
fragile and discriminatory and proper legal cover be
made available once the policy is finalized.
b. The Rules of PPRA, PEC & NHA Code be harmonized
in the light of current bidding trends, bidders’
attitude, prevailing practices / tactics of bidders,
procedural shortcomings and the lessons learnt
while implementing applicable procurement rules.
c. The principles of procurement process may be
revisited while keeping in consideration the best
interest of biggest stakeholder of procurement ie
‘Public.’ PPRA Rules should be deliberated andcommented in a legal manner.
-
8/9/2019 219 Executive Borad Meeting of NHA1
14/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
14
d. If Executive Board agrees to proposed amendments
in clauses of PEC standard bidding documents
pertaining to bid & performance securities, matter
may be taken up with PEC officially for resolution.
7.6. Rule Position.
a. PPRA Rules, 2004 are applicable on NHA for
procurement of goods, works & services and are also
part of NHA Code (Ref: Chapter 3, NHA Code 2005, Vol-I).
b. NHA Code also specifies that PEC bidding documents
approved by ECNEC shall be used for procurement ofgoods, works and services.
c. ECNEC on Nov 12, 2007 decided that PEC standard
bidding documents shall be applicable to
procurement of all engineering goods, works and
services and that the federal, provincial departments
/ organization and district governments will be
responsible to implement this decision.
d. Implementation of PEC bidding documents has also
been emphasized by P&D Division, PEC and MoC
from time-to-time.
7.7. Current Scenario.
a. The CAP in a meeting held with Secretary (MoC) on
Feb 13, 2012 raised the conflict in bidding
documents recommended by PEC & those prepared
by NHA (P&CA Section) with special reference to
provision of insurance guarantee.
b. Follow-up meeting was held between NHA and CAP
on Mar 1, 2012 and, subsequently, clarifications
were sought from PEC on Mar 27, 2012 regarding
“Form” of bid and performance securities for single
stage two envelope bidding process.
-
8/9/2019 219 Executive Borad Meeting of NHA1
15/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
15
c. The PEC on Apr 9, 2012 clarified as under:-
i. Bid security for single stage two envelope bidding
can be submitted at the option of the bidder
including at least “AA” rated insurance company.
ii. In case of performance security, Clause-10.1 of
the Particular Conditions of the Contract (CoC)
allows performance security from insurance
companies also. Specific provision in particular
conditions supersedes any similar provision
either in general conditions or instructions to
bidders or bid data sheet.
iii. If the employer finds any contradiction between
instructions to bidders or CoC then priority will
be those of harmonized document and such
anomalies be brought to the notice of PEC for
clarification.
d. It is mandatory for NHA to comply with the PEC
Guidelines which now allows insurance bond from
“AA” rated insurance companies both for bid andperformance securities. The earlier decision of NHA
Executive Board (201st meeting of Jan 20, 2011) needs to
be reviewed.
7.8. Proposal. NHA Executive Board is requested to review the
matter and revisit its earlier decision (201st meeting of Jan 20, 2011).
Board’s Deliberations
7.9. The Member (Planning) presented details.
7.10. The MoC had conveyed certain written observations on
this agenda item. Tabulated response rendered by the Planning Wing
in respect of each observation is at Annex-C.
7.11. The VP-NESPAK observed that although NHA has to
follow PEC Guidelines but it should keep on fighting for review of
these instructions and seek deletion of insurance bond from the list ofadmissible securities.
-
8/9/2019 219 Executive Borad Meeting of NHA1
16/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
16
7.12. The Chief (NTRC) remarked that the PEC is allowing
insurance bonds rendered by 4 to 5 “AA” rated insurance companies
and NHA may follows these instructions.
7.13. The AS (Finance) opined that NHA has not made any
particular recommendation for consideration by the Board in the
working paper. As to what specific decision NHA is recommending
and for what reason be elaborated.
7.14. The Member (Finance) responded that the Board while
deliberating on this subject (201st meeting of Jan 20, 2011) directed NHA
not to accept securities of even “AA” rated insurance companies and to
restrict the bidders for securities/ bonds only from scheduled banksof Pakistan to cover and safeguard risk of NHA’s construction &
maintenance projects. However, the CAP is agitating the decision
being against PEC Guidelines.
7.15. The JS (MoC) remarked that the Reps of CAP visited MoC
and pleaded that the Board’s decision is in contradiction to the
provisions of PEC Guidelines; which should be followed. He observed
that if submission of insurance bond is restricted to 4 or 5 “AA” rated
insurance companies not much complications are envisaged.
7.16. The AS (Finance) observed that the aim is to minimize
financial risk. If NHA feels that sufficient risk is not covered, one odd
item out of the available options for submitting security can be
considered for exclusion.
7.17. The Chairman explained that restricting the bid security
to bank guarantee would amount to restricting healthy competition as
the contractors react by creating cartels. However, for mobilization
advance, security in the shape of bank guarantee only is accepted.
7.18. The JS (MoC) enquired as to what procedure is followed
for verification of bid securities.
7.19. The Member (Finance) responded that guarantees are
issued by the branches of the banks. Verification is sought from the
bank’s head office; which have designated and empowered authorizedsignatories to render the required confirmation.
-
8/9/2019 219 Executive Borad Meeting of NHA1
17/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
17
7.20. The matter was cleared after detailed discussion.
Decision
7.21. The Executive Board revisited its decision taken in the
201st meeting of Jan 20, 2011 and authorized NHA to accept
insurance bonds issued by an insurance company at least having “AA”
rating from PACRA / JCRA for bid & performance securities.
7.22. For provision of mobilization advance, NHA will only
accept bank guarantee issued by a scheduled bank of Pakistan.
7.23. The Board, however, advised NHA to keep on persuadingthe PEC to disallow acceptance of insurance bonds for bid &
performance securities for better risk management of NHA’s projects
and schemes.
Action By : Member (Planning)
8. Agenda Item 5
Revised PC-I of Makran Coastal Highway Project
(MCHP, N-10)
Introduction - Working Paper
8.1. Introduction - Makran Coastal Belt.
a. Pakistan has about 1200 km long coastal belt along
Arabian Sea. Portion from Hub in Balochistan upto
Jiwani is called “Makran Coastal Belt.”
b. The Makran Coastal Highway Project (MCHP) was
conceived as an all-weather link for Makran Coast.
c. MCHP provides an all-weather road to serve the
population of Makran Coastal Belt and facilitates
communication & trade by linking Karachi with
Ormara, Pasni, Gwadar and Jiwani Ports.
-
8/9/2019 219 Executive Borad Meeting of NHA1
18/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
18
d. Aim was to provide basic amenities to the people
living in far-flung coastal areas; boost up economic
activity and connect Karachi with Gwadar Port.
8.2. Introduction - Makran Coastal Highway (N-10).
a. MCHP starts from Shaikh Raj, approx 105 km north
of Karachi on RCD Highway (N-25), and ends at
Gabd near Pakistan-Iran border.
b. MCHP in the long run will also cater for traffic from
Iran, Gulf and Central Asian Republics & facilitateinternational trade.
8.3. Project PC-I.
a. NHA carried out design & feasibility studies in 1993-
94 at an estimated cost of Rs 11.442 billion.
b. PC-I was updated on CSR-2000, with revised value of
Rs 15.01 billion (Rs 11.498 billion LCC & Rs 3.511 billion
FEC). ECNEC approved it on May 3, 2001.
8.4. Construction Packages. For construction & management
purposes, MCHP was bifurcated into four sections:-
Sect
Route
Km
Start
Completion
I. Lyari-Ormara 249.75 Jul-2000 Jun-2003
II.
Ormara-Pasni
Sub-section-I
50.96
Jan-2003
Dec-2004
Sub-section-II
51.12
Jan-2003
Dec-2004
Sub-section-III 50.03
Jan-2003
Dec-2004
III.
Pasni-Gwadar
137.20
Feb-2002
Feb-2004
IV. Gwadar - Jiwani - Gabd
Gwadar - Pleri - Jiwani 67.80 Apr-2006 Sep-2008
Pleri - Gabd 42.39 Jan-2007 Jun-2011
-
8/9/2019 219 Executive Borad Meeting of NHA1
19/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
19
8.5. Variations.
Rs in Million
Section Contract Financial
Im act
Revised
a. Lyari - Ormara 3906.372 981.016 4797.388b. Ormara – Pasni 2146.601 478.774 2625.375
c. Pasni – Gwadar 2888.761 (-) 247.162 2641.599
d. Gwadar - Gabd 3508.804 (-) 353.004 3155.800
Total 12450.538 769.624 13220.162
8.6. Improvement and Rehabilitation Works.
Rs in Million
Section Contract Saving Reviseda. Lyari - Ormara (Pack-I) 374.258 (-)18.708 355.55
b. Ormara - Pasni (Pack-II) 506.89 (-)305.131 201.759
c. Two Minor Bridges 81.471 (-)1.247 80.224
Extension of Phor Nai Bridge
d. Phase-I 251.001 +9.037 260.038
e. Phase-II 90 -- 90
Total 1303.62 (-)316.049 987.571
8.7. Land Acquisition Provision : Original & Revised PC-I.
Rs in Million
Sec Route Original Revised
I. Lyari-Ormara 20.710 142.00
II. Ormara-Pasni 15.734 175.00
III. Pasni-Gwadar17.855
728.80
IV. Gwadar - Jiwani - Gabd
Gwadar - Pleri - Jiwani 120.00
Pleri - Gabd 70.00
Total 54.299 1235.80
8.8. Summarized Comparison of Scope/ Cost.
Rs in Million
Section Original PC-I Revised PC-I
Executed Proposed
a. Lyari-Ormara 5287.926 6247.436
b. Ormara-Pasni 3952.544 3377.569 1697.00
c. Pasni-Gwadar 2791.687 3673.040 1771.468
d. Gwadar-Gabd 2977.210 4065.279
Sub Total 17363.325 3468.468
Gross Total 15009.367 20831.793
-
8/9/2019 219 Executive Borad Meeting of NHA1
20/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
20
8.9. Financing : Year-wise PSDP Allocation.
Rs in Million
F/Year Allocation Utilization
a.
2001-01
300
201,221
b. 2001-02 2,000 1,387.421
c. 2002-03 3,000 4,993.650
d. 2003-04 2,350 4,039.199
e. 2004-05 2,500 1,525.882
f. 2005-06 1,500 640.511
g. 2006-07 1,125 1,078.877
h. 2007-08 1,800 1,095.626
i. 2008-09 1,000 1,094.130
j. 2009-10 500 682.332
16,075 14,738.849
8.10. Other Costs / Project Life.
a. Annual recurring operation/ maintenance cost (pkm):-
Section Rs in M
i. Lyari – Ormara 0.214
ii. Ormara – Pasni 0.200
iii. Gwadar – Pak Iran Border (Jiwani) 0.276
b. Periodic maintenance cost is same as above.
c. Pavement life is ten years and structures 50 years.
8.11. Proposal. The Executive Board is requested to recommend
the revised PC-I of MCHP (N-10) to CDWP/ECNEC for approval by
endorsing any one of the following options:-
a.
Revised PC-I costing Rs 20.832 billion. It entails+38.79% variation vis-à-vis the approved PC-I cost of
Rs 15.009 billion.
OR
b. Revised PC-I costing Rs 17.363 billion by deleting
additional works of Rs 3.469 billion to be carried out
at a later stage through a separate PC-I considering
the paucity of funds and law & order situation along
the project area. It entails +15.68% variation vis-à-vis the approved PC-I cost of Rs 15.009 billion.
-
8/9/2019 219 Executive Borad Meeting of NHA1
21/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
21
Board’s Deliberations
8.12. The Secretary NHA introduced the proposal with remarks
that the Executive Board had decided (201st meeting of Jan 20, 2011) to get
the revised PC-I of MCHP and related aspects scrutinized through a
Sub-committee of the Board comprising Senior JS (MoC), Chief (NTRC)
and VP-NESPAK. However, the Sub-committee could not make any
headway because two incumbents of the post of Senior JS (MoC) were
transferred and 2 x Chief (NTRC) retired within a short span of time.
8.13. Matter is awaiting finalization since Jan-2011. Meanwhile,
cost of the PC-I has been rationalized from Rs 20.832 billion to Rs
17.363 billion. Therefore, the JS (MoC) has opined that it is desirable
if the issue is reviewed afresh by the Executive Board.
8.14. The JS (MoC) added that due to delay in finalization of the
revised PC-I, certain Audit Paras of MCHP, likely to be soon debated
by the PAC, are awaiting disposal.
8.15. The MoC had conveyed certain written observations on
this agenda item. Tabulated response rendered by the Construction
Wing in respect of each observation is at Annex-D.
8.16. The GM (MCHP) presented details. In response to various
queries, he stated that the expenditure so far incurred on MCHP is
less than Rs 15 billion, as explained below:-
Description Rs in M
a. Total Work Done 13,424.923
b. Escalation 933.987
c. Consultancy Cost 116.495
d. Land Acquisition 175.025
e. Utilities Re-location 5.463
f. Establishment 290.592Total 14,946.485
8.17. The GM (MCHP) further conveyed that major contributory
factors for revision in cost are:-
a. Increase in land acquisition cost from Rs 67 million
to Rs 1,236 million (+8.24% of total original PC-I cost).
b. Increase in other costs / scope is Rs 1117 million
(+7.44% of original PC-I cost).
-
8/9/2019 219 Executive Borad Meeting of NHA1
22/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
22
c. Total increase from original PC-I is Rs 2,353 million
ie +15.68%.
8.18. The GM (MCHP) added that the cost of the revised PC-Ihas been rationalized by deleting following additional works, but, he
would request that the matter may be reconsidered and these works
also recommended because of their importance:-
Sec
Routes
Rs in M
I. Ormara-Pasni
Basol River remedial works 272.800
Shadi Kaur Bridge works & road realignment 1424.200
II. Pasni-Gwadar
36 km re-alignment of MCH required by GDA/Govt of Balochistan
1771.468
Total 3468.468
8.19. The JS (MoC) remarked that an independent PC-I may be
processed for the additional works.
8.20. The Chief (T&C) observed that the additional works of
Section-I are of important / sensitive nature & can not be overlooked.
He would, therefore, recommend inclusion of additional works in the
revised PC-I for the matter to be decided by CDWP / ECNEC.
8.21. The AS (Finance) observed that constructing MCHP very
close to coastline in areas prone to flash floods perhaps was not a wise
decision. Since it is essential that MCHP always remains operational
at all times, it is desirable if additional works required for the purpose
are undertaken expeditiously.
8.22. The Chairman provided details of various ongoing projects
on Gwadar - Turbat - Hoshab (M-8), Hoshab - Panjgur - Nag - Basima
- Sorab (N-85) and Khuzdar - Ratodero (M-8) and stated that all these
projects are lingering on for the past quite some time but completion
is not in sight. Work on Gwadar - Turbat - Hoshab (M-8) and Hoshab -
Sorab (N-85) is suspended for the past around 3 years because of
security challenges and paucity of funds. Prudence demands that no
additional works be committed on MCHP till completion of ongoing
linkages for Gwadar Port.
-
8/9/2019 219 Executive Borad Meeting of NHA1
23/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
23
8.23. The VP (NESPAK) added that damages on coastal roads do
occur and since traffic on MCHP is moving and occasional disruptions
because of abnormal rains, flash floods and cyclones are not for
lengthy durations, the additional works can be attended to separately.
8.24. After lengthy deliberations, the PC-I was recommended for
approval without additional works.
Decision
8.25. The Executive Board recommended the revised PC-I of
Makran Coastal Highway Project (N-10) costing Rs 17.363 billion to
the CDWP/ECNEC for approval. It entails +15.68% variation vis-à-vis the approved PC-I cost of Rs 15.009 billion.
8.26. The Board decided that the additional works of Rs 3.469
billion, as detailed in Para-8.18 above, will be carried out at a later
stage through a separate PC-I considering the paucity of funds and
law & order situation along the project area or through a second
revision of this PC-I at an appropriate time.
Action By : Member (Construction) & Member (Planning)
9. Agenda Item 6
Award of Toll Plazas Through Negotiated Tendering
Introduction - Working Paper
9.1. Preliminary Facts.
a. Under Section-10 of the NHA Act, 1991 (amended 2001)
NHA is empowered to levy and collect toll tax; which
is the main sources of revenue generation for
maintenance of the national highway & motorway
network. NHA has installed a number of toll plazas
on various sectors of its network to collect revenue
from the commuters to provide smooth and hazard
free traffic flow.
-
8/9/2019 219 Executive Borad Meeting of NHA1
24/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
24
b. Upkeep and maintenance of NHA network require a
source of continuous funding based on international
highway safety standards. To coup with continuous
expanding requirements, it is imperative to improve
upon this source of revenue generation by bringingun-tolled roads to toll network. This on the one hand
will meet future funding requirements, and, on other,
inculcate a tolling culture.
c. Although, the masses in general have accepted toll as
a necessity for using a well maintained road, still in
certain cases severe public resentment was
encountered. These included following locations:-
i. Pabbi Toll Plaza (N-5), District Nowshera, KP.
ii. Jand Toll Plaza (N-80), District Attock, Punjab.
iii. Mansehra Toll Plaza (N-35), KP.
9.2. Pabbi Toll Plaza (N-5), District Nowshera, KP.
a. NHA previously attempted to install a toll plaza at
this point in the year 2000 through NLC, but could
not succeed due to severe public resentment.
b. Local surveys & consultations indicate severe
resistance from local commuters and inter-regional
transporters, if any such attempt is made again. It is
considered advisable to adopt a pragmatic result
oriented approach for generating toll revenue.
c. Tentative reserve price based on 1 day traffic count is
Rs 161.1 million per annum.
9.3. Jand Toll Plaza (N-80), District Attock, Punjab.
a. Previous two attempts made in 2004 & 2006 to
install a toll plaza at this point attracted severe
public agitation.
-
8/9/2019 219 Executive Borad Meeting of NHA1
25/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
25
b. Matter cannot be left unattended and there is a need
to engage local influential’s who could mange public
sentiment to avoid / minimize resentment.
9.4. Mansehra Toll Plaza (N-35), KP.
a. This toll plaza established in Mar-2000 was initially
run by FWO but, subsequently, handed over to the
District Govt, Mansehra (DGM) on 30% sharing
basis. In 2004, the DGM, on expiry of term contract,
sought enhancement of its share to 50% of the net
income and also proposed withdrawal of
enhancement in toll rates at this point.
b. Negotiations with DGM were not fruitful and NHA
awarded the toll O&M contract through open
bidding. However, the law & order situation
worsened resulting in murder of a Police officer,
while one other suffered serious injuries.
c. NHA agreed to re-fix the DGM share as 50%, but the
demand to withdraw enhancement in toll rates was
not endorsed by the Executive Board on Aug 24,
2008. The Board also directed to relocate the toll
plaza at a place where such like situation could be
avoided in future.
d. The DGM went into litigation against NHA and toll
operation could not re-commence. The Civil Court
Mansehra granted status quo against establishment
of toll plaza and the matter remained in lengthy
litigation. Nevertheless, NHA has recently succeeded
in getting the stay order vacated at the level of
Supreme Court of Pakistan.
e. Tentative reserve price calculated for original location
is Rs 75.7 million, while at the newly selected place
in District Abbottabad Rs 56.3 million per annum. If
the location is further changed, tentative reserve
price will further vary.
-
8/9/2019 219 Executive Borad Meeting of NHA1
26/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
26
9.5. Exploration of Non-Traditional Approach.
a. It is apprehended that if services of operation &
management (O&M) contractors for above toll plazas
are procured through competitive bidding, unendinglitigation might jeopardize the procurement process.
b. Since establishment of toll plazas at the above
locations is essential to generate precious revenue for
maintenance, it was felt prudent to explore non
traditional ways.
c. It is considered advisable to adopt the course of
negotiations for award of these toll plazas to localinfluential’s, who, on one hand could put a check on
resistance from the general public and, on the other,
successfully operate the toll plaza by providing some
relief to local commuters under own arrangement.
9.6 Bids Received. Summarized status of bids (net revenue per
annum) for O&M of the three toll plazas in question filed by certain
interested parties:-
Rupees in Million
Company(M/s)
Toll Plaza Traffic Count Tentative
Reserve PriceOfferedPrice
a.AfridiOperators
Pabbi(N-5)
Near AzakhelPark (2011)
161.1 60
b.WasimBukhariBuilders
Jand(N-80)
Km 80(2010)
13.9 24.05
c.
Sardar
& Co
Mansehra
(N-35)
Km 63 & 90
(2008)
75.7 &
56.3 26.4
9.7. Negotiations by the Committee of Officers.
a. A Committee of officers headed by GM (Operation)
and comprising Director (OMU), Director (P&CA),
Director (RAMS) and DD (P&R) deliberated upon all
the aspects of negotiated tendering in relaxation of
normal bidding procedure provided in PPRA Rules viz
auction through advertisement in the press onprescribed terms & conditions.
-
8/9/2019 219 Executive Borad Meeting of NHA1
27/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
27
b. The Committee opined that in the peculiar
circumstances encountered on the three locations in
question, adopting regular procedure will further
worsen the situation. This is also supported by the
PPRA Rule-42(d), which provides for negotiatedtendering, when processing through normal
procedure is not feasible.
c. The Committee decided to negotiate to bring the bids
at a reasonable level as it was considered advisable
to award the O&M of above toll plazas to local
influential’s, capable of handling adverse situations,
and thwarting resistance, on interim basis till toll
culture is inculcated and masses enlightened of thelong term benefits of paying toll.
9.8. Revised Bids. Three meetings were held with interested
parties. First meeting took place in Feb-2012 and the second in Mar-
2012. However, the bidders could not be convinced to enhance bids.
Nevertheless, in the final meeting held on May 16, 2012, the bidders
agreed to enhance their bids as under:-
Rupees in Million
Company(M/s)
TollPlaza
TentativeReserve Price
OfferedPrice
a. Afridi OperatorsPabbi(N-5)
161.1 100
b.Wasim BukhariBuilders
Jand(N-80)
13.9 26.05
c. Sardar & CoMansehra
(N-35)75.7 & 56.3 35
9.9. Points to Note.
a. Award of toll plazas through negotiated bidding will
not meet the financial expectations, as the bidders
will have to meet allied expenses apart from
operational expenditure viz relief to local commuters
and arrangements with the local administration and
political elites who will be in a much better position
to tackle the issue of resistance by local populace/
commuters.
-
8/9/2019 219 Executive Borad Meeting of NHA1
28/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
28
b. The above mentioned bidders are already working
with NHA for the past quite some time. They are well
acquainted with the task and possess the capability
to operate toll plazas. They are financially sound and
have so far not defaulted in payment of revenue.
c. Presently, NHA is generating zero revenue from the
above three stations. Award of toll plazas through
negotiated tendering will start revenue generation
though less with immediate effect and this will help
promote toll culture among local masses and prove
beneficial in the long run. Once toll culture is fully
ingrained, NHA will be in a better position to award
toll plazas through open bidding.
9.10. Proposal. The NHA Executive Board is requested to
approve award of the O&M of the three toll plazas in question on
negotiated tendering at the rates and to the bidders mentioned in
Para-9.8 for the period ending Jun-2013.
Board’s Deliberations
9.11. The MoC had conveyed certain written observations on
this agenda item. Tabulated response rendered by the Operation Wing
in respect of each observation is at Annex-E.
9.12. The Member (Operation) presented details.
9.13. The Chairman added that many key sections of NHA
network taking significant traffic are yet not covered through toll. NHA
intends to utilize the influence & authority of local prominent figures
to inculcate toll culture while also earning some revenue. The
individuals with political background can mute the hue & cry which israised when NHA attempts to award toll O&M contracts through open
competition.
9.14. The Member (Operation) remarked that the toll O&M
contracts in question are proposed to be assigned till Jun-2013 only
and, around Mar-2013, these toll plazas would be advertised for
award on open tendering basis. He added that in a similar nature
case, the Executive Board had allowed identical dispensation (189th -
Special Board meeting of Apr 24, 2010) for award of O&M contracts for anumber of toll plazas in Balochistan through negotiation.
-
8/9/2019 219 Executive Borad Meeting of NHA1
29/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
29
9.15. The JS (MoC) observed that NHA should not succumb to
pressure from the public and road users to circumvent requirements
of PPRA. He also felt that the traffic counts mentioned in the proposal
were outdated.
9.16. The Chairman responded that NHA needs to follow a
pragmatic approach to counter opposition faced at selected locations.
NHA is not facing any such problem at locations where toll culture is
deep rooted. On the existing toll plazas, normally only locals resist
toll and NHA compensates them by issuing frequent user passes.
9.17. The Member (Ops) added that traffic counts do not matter
much as the guaranteed revenue figures have been agreed to throughnegotiation. The prospective toll operators had offered much lower
figures but the bids have been got revised after hectic effort.
9.18. The VP (NESPAK) enquired whether FWO and NLC were
also consulted. He also apprehended that private toll operators
assigned the toll O&M responsibility based on their ability to use
influence might exploit the road users through over-charging.
9.19. The Member (Ops) responded that FWO and NLC were not
approached before but can be consulted now. However, it needs to be
highlighted that FWO were previously operating the Mansehra Toll
Plaza but backed out after public outcry. Moreover, track record of
FWO is not so promising as they are holding NHA’s toll revenue
generated from the Motorways (M-1, M-2 & M-3) sine Jul-2009 and
are already defaulter of more than Rs 5.75 billion.
9.20. The Member (Ops) further explained that exploitation of
road users will not be allowed because approved toll rates would be
prominently displayed and NHA functionaries would ensure regular
monitoring of toll operations.
9.21. The Board discussed the matter and decided that in the
first instance NHA would invite NLC to check if they would be
interested in operating the three toll plazas in question at the
guaranteed revenue rates significantly higher than that agreed with
private toll operators. In case, NLC refuses to offer higher guaranteedrevenue, the bids discussed in Para-9.8 would be accepted.
-
8/9/2019 219 Executive Borad Meeting of NHA1
30/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
30
Decision
9.22. The Executive Board approved award of toll O&M
contracts for three toll plazas in question on negotiated tendering atthe rates and to the bidders mentioned in Para-9.8 for the period
ending Jun-2013.
9.23. The Board, however, decided that in the first instance
NHA would offer these toll plazas to NLC to check if they would be
interested in toll O&M of these toll plazas at the guaranteed revenue
rates significantly higher than that agreed with private toll operators.
9.24. In no case the toll O&M contracts will be extended beyond Jun-2013 and, towards this end, NHA would ensure timely action for
award of these toll plazas through open competitive bidding.
Action By : Member (Operation)
10. Agenda Item 7
Rationalization of Toll Rates on Satra Mile - Lower
Topa Expressway
Introduction - Working Paper
10.1. Introduction. Current schedule of toll rates on national
highways was implemented in pursuance to the decision of NHA
Executive Board (206th meeting of Aug 11, 2011) wef Sep 1, 2011:-
Vehicular Category Toll (Rs)
a. Car, Jeep, Land Cruiser, Pajero, Tractorwithout Trolley & Equivalent
25
b. Wagon upto 24 seats / Coaster / Mini Bus /
Mazda / Chassis upto 24 seats and Mini Truck
35
c. Bus / Coach / More than 24 seats 75
d. 2 / 3 Axle Truck 90
e. 4/5/6 Axle Truck (Articulated) 175
-
8/9/2019 219 Executive Borad Meeting of NHA1
31/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
31
10.2. Satra Mile - Lower Topa Expressway.
a. NHA has constructed the Satra Mile - Lower Topa
Expressway at a huge cost. Although this low
gradient expressway is preferentially used by localand foreigner visitors and tourists, NHA has kept toll
rates at par with national highways.
b. This facility of international standard traverses
difficult terrain and is exposed to vagaries of nature
including frequent landslides. Keeping traffic moving
on this facility at all times requires additional
resources and continuous effort. Due to heavy traffic
load, the ratio of general wear & tear increases, andthis requires additional funds for maintenance.
c. The aspect of public and highway safety on this road
is also of prime importance as traffic density
increases abnormally in peak tourist season and on
weekends, as the majority of commuters plying on
this road are visitors/ tourists on recreational trips.
d.
Improved highway safety for ensuring traffic
discipline requires additional resources to upkeep
and maintain this expressway as an all whether road
and thus the need for toll rationalization.
10.3. Old Murree Road. The old Islamabad - Murree Road is a
2-lane single carriageway of high gradient and Punjab Govt is
charging Rs 45 for each light vehicle for upward journey only.
10.4. Proposal. Toll rates on Satra Mile-Lower Topa Expressway
may be rationalized by doubling the existing rates for all categories of
vehicles. The Executive Board’s approval is requested.
Board’s Deliberations
10.5. The MoC had conveyed certain written observations on
this agenda item. Tabulated response rendered by the Operation
Wing in respect of each observation is at Annex-F.
-
8/9/2019 219 Executive Borad Meeting of NHA1
32/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
32
10.6. The Member (Operation) presented details.
10.7. The Chairman added that the proposed rationalization of
toll rates is the need of the hour. The Minister (C) and the Secretary
(C) have also directed necessary action to this effect.
10.8. The VP-NESPAK remarked that the need for toll
rationalization is appreciated but the increase should be gradual so
that it is absorbed by the road users without much ado. Therefore, the
proposed increase may be actualized in two phases of 50% increase in
each phase staggered over a considerable length of time (say one year).
10.9. The Chairman, however, stressed that the proposal may
be approved as submitted because the road traverses difficult terrainand is very heavy on maintenance and the cost is regularly increasing.
Matters concerning this road were deliberated with the local MNA, Mr
Shahid Khaqan Abbasi also in the context of RoW management,
removal of encroachments and issues concerning villages’ located en-
route and he also suggested rationalization of toll rates.
10.10. Matter was discussed and cleared by the Board.
Decision
10.11. The Executive Board approved rationalization of toll rates
on Satra Mile-Lower Topa Expressway (E-75), as follows:-
Vehicular Category Existing Proposed
a. Car, Jeep, Land Cruiser, Pajero,
Tractor without Trolley & Equivalent
25 50
b. Wagon upto 24 seats / Coaster /Mini Bus / Mazda / Chassis upto
24 seats and Mini Truck
35 70
c. Bus / Coach / More than 24 seats 75 150
d. 2 / 3 Axle Truck 90 180
e. 4/5/6 Axle Truck (Articulated) 175 350
Action By : Member (Operation)
-
8/9/2019 219 Executive Borad Meeting of NHA1
33/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
33
11. Agenda Item 8Raising of Funds by Floating Rupee DenominatedSukuk in Domestic Capital Market Against Islamabad- Peshawar Motorway (M-1)
Introduction - Working Paper
11.1. M-2 (International). The Executive Board (124th Special
meeting of Jan 6, 2005) had passed a “Resolution” regarding sale
transaction of certain portion of land comprised in Lahore - Islamabad
Motorway (M-2) with Pakistan International Sukuk Coy Limited, a
public limited company incorporated under the laws of Pakistan and
wholly owned by GoP to raise funds by floating dollar-denominated
Sukuk in international capital market. The GoP raised USD 600
million through this exercise.
11.2. M-3 (Domestic). Another “Resolution” was passed by the
Board (179th meeting of Sep 19 & 30, 2009) for sale transaction of certain
portion of land comprised in Faisalabad - Pindi Bhattian Motorway
(M-3) with Pakistan Domestic Sukuk Coy Ltd to raise funds by floating
rupee-denominated Sukuk. The GoP raised Rs 42 billion.
11.3. M-2 (Domestic). A third “Resolution” was passed by the
Board (208 meeting of Oct 19, 2011) for sale transaction of any or certain
portion of land comprised in Motorway (M-2) with Pakistan Domestic
Sukuk Coy Ltd to raise funds by floating rupee-denominated Sukuk.
The GoP had set a target of raising Rs 50 billion.
11.4. Proposal. The Finance Division vide letter No F4(21)EF
(C.III)/2009 dated Jun 15, 2012 intimated that the government is
considering to raise new funds by issuing a Sukuk against the
underlying assets of Islamabad - Peshawar Motorway (M-1). It has also
been confirmed that this Sukuk transaction would not involve any
financial, legal or administrative implication for NHA.
11.5. Acknowledgment. Earlier, the Finance Division vide UO
Note No 4(21)EF(C.III)/2009 dated May 28, 2012 had acknowledged
the cooperation extended by NHA from time-to-time for raising funds
from the international and domestic capital markets by floating
Sukuks while also conveying that they are considering adding new
assets like Motorway (M-1) & Makran Coastal Highway (N-10) to build
additional capacity for raising funds through Sukuk transactions.
-
8/9/2019 219 Executive Borad Meeting of NHA1
34/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
34
11.6. Views NHA. NHA has no objection to the proposal.
11.7. Proposal. Following Members Executive Board may be
authorized to enter on behalf of NHA into the process of saletransaction of certain portion of land comprised in M-1 with Pakistan
Domestic Sukuk Coy Ltd for consideration & approval by the Board:-
a. Mr Abdul Khaliq, Add’l Secretary (Finance Division).
b. Mr Shoaib Ahmad Khan, Member (Finance) NHA.
c. Mr Sabir Hasan, Member (Planning) NHA.
Board’s Deliberations
11.8. The Secretary NHA remarked that this proposal was
initiated at the behest of the Finance Division and since that Division
wanted expeditious action in the matter; approval of the Executive
Board was solicited on circulation basis. Whereas, all the Members
accorded consent, the AS (Finance) and JS (MoC) desired that the
issue may be debated formally in the Board meeting.
11.9. The Member (Finance) presented the details.
11.10. The AS (Finance) remarked that he has no specific
comment to offer and the reason he did not endorse his signatures
earlier was that he had not been able to consult the relevant case file
in the Finance Division. He would appreciate if the Member (Finance)
NHA could separately provide him relevant details.
Note. Subsequent to the Board meeting, the Member (Finance) provided relevant
details to the AS (Finance) and he has accorded his clearance.
11.11. The Chief (T&C) suggested that nomination of Executive
Board Members to Pakistan Domestic Sukuk Coy Ltd instead of by
name may be made by designation so that the Board’s clearance may
not be required in case of posting transfer of any officer. Moreover, the
said officers may also perform this function for any future proposals of
similar nature, if & when initiated by the Finance Division regarding
sale transaction of NHA land with Sukuk Bonds.
11.12. Matter was discussed and cleared.
-
8/9/2019 219 Executive Borad Meeting of NHA1
35/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
35
Decision
11.13. The Executive Board approved sale transaction of rupee
denominated Sukuk in Domestic Capital Market against Islamabad -Peshawar Motorway (M-1) with Pakistan International Sukuk Coy Ltd
and authorized the following Board Members to enter into the process
of sale transaction of certain portion of land comprised in M-1:-
a. Additional Secretary (Budget, Finance Division).
b. Member (Finance) NHA.
c. Member (Planning) NHA.
11.14. The Board also decided that the above officers will alsoperform this function for any future proposals of similar nature, if &
when initiated by the Finance Division regarding sale transaction of
NHA land with Sukuk Bonds.
Action By : Member (Finance)
12. Agenda Item 9Writing-Off Loss Sustained by NHA : Theft of ToyotaDouble Cabin No KN-2031, Model 2004
Introduction - Working Paper
12.1. Vehicle No KN-2031, Toyota Double Cabin, Model 2004
was detailed with Mr Abdul Qadoos Shaikh, Ex-Project Director (S-R)
Larkana for performing official duties. It was snatched on Jul 24,
2009 at about 0830 hours by unknown armed persons from the driver
while he was waiting in the parking area of the officer’s residence near
Regional Office, Sukkur. The dacoits kidnapped the driver also and
took him along with vehicle.
12.2. The officer rushed to the office of DPO Sukkur who
passed orders of “Naka Bandi” at outlets of Sindh Province border
with Balochistan. FIR was also lodged by the officer in the concerned
Police Station Sukkur. However, the police have so far not succeeded
in recovering the vehicle.
12.3. The vehicle was not comprehensively insured being 2004
model as only new vehicles are comprehensively insured that too onlyfor 3 years as per NHA Motor Vehicle Use Policy.
-
8/9/2019 219 Executive Borad Meeting of NHA1
36/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
36
12.4. An Inquiry Committee headed by Mr Basharat Hussain,
PD NHA, Larkana was constituted. The inquiry report furnished by
him was found to be full of flaws and lacuna.
12.5. A fresh inquiry was assigned to Mr Abdul Rauf Sheikh,
Director (Monitoring) NHA, Karachi. He concluded that the officer was
not at fault and declared him innocent as the loss was accidental in
nature and nothing adverse against the officer was observed. The
incident occurred due to overall law & order situation in the country.
12.6. Since no action is required to be taken against any NHA
official, it is proposed that entire loss ie reserve price of the vehicle of
Rs 1,674,036/-, as calculated/vetted by Finance Wing, may be writtenoff by NHA Executive Board, being the competent forum as per Table-
XI to Chapter-10 of NHA Code.
Board’s Deliberations
12.7. The Member (Admin) presented details.
12.8. The JS (MoC) remarked that NHA is seeking approval for
writing-off loss of vehicles in certain cases and in few other cases
recoveries are being affected from the officers / officials who lost the
vehicle. The criteria / SOPs on the subject need to be explained.
12.9. The Member (Admin) clarified that write-off or recovery
action depends on the outcome of the formal inquiry. Matter is
processed in accordance with the conclusion drawn and
recommendation made by the Inquiry Officer/Committee. If the
conclusion is that the loss of vehicle is also attributable to negligence
by the officer or the driver concerned, the Inquiry Officer/Committee
recommends full or partial recovery and the action is taken
accordingly. If the loss is not attributable to the officer or the driver
concerned, write-off of the loss is recommended.
12.10. The Member (Admin) added that no case of theft of
vehicles is submitted to MoC. However, if recovery action is ordered,
the officer or the official concerned do submit appeals to the MoC for
review of NHA decision.
-
8/9/2019 219 Executive Borad Meeting of NHA1
37/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
37
12.11. Matter was discussed and it was opined that the element
of bias on the part of the Inquiry Officer/Committee cannot be ruled
out. To ensure that no injustice is done, NHA should bring all cases
of theft of vehicles to the Executive Board for info in case the loss is
being recovered from the officer or the driver concerned or for approvalif the loss is proposed to be written-off.
Decision
12.12. The Executive Board approved writing of the loss of Rs
1,674,036/- due to theft of Theft of Toyota Double Cabin No KN-2031,
Model 2004.
12.13. Henceforth, NHA will bring all cases of theft of vehicles to
the Executive Board for info in case the loss is being recovered from
the officer or the driver concerned or for approval if the loss is
proposed to be written-off.
Action By : Member (Admin)
13. Agenda Item 10Extension in Contract Appointment of Lt Col (Retd)Abid Ali Khan, Director (Engr, BS-19)
Introduction - Working Paper
13.1. Lt Col (Retd) Abid Ali Khan was appointed on contract as
Director (Engr, BS-19) after fulfilling all codal formalities wef May 3,
2010 against a PC-I post of Lowari Tunnel Project completion date of
which is Mar-2014. His contract tenure expired on May 2, 2012.
13.2. The services of Lt Col (Retd) Abid Ali Khan are required on
continued basis, keeping in view project needs. Therefore, NHA
recommends extension in his contract wef May 3, 2012 to Mar 31,
2014. His performance in 2011 & 2012 has been rated as “good.”
13.3. Approval of the Executive Board is solicited.
Board’s Deliberations
13.4. The MoC had conveyed certain written observations on
this agenda item. Tabulated response rendered by the Admin Wing in
respect of each observation is at Annex-G.
-
8/9/2019 219 Executive Borad Meeting of NHA1
38/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
38
13.5. The Member (Admin) presented details.
13.6. Matter was discussed & cleared by the Board.
Decision
13.7. The Executive Board approved extension in the contract
appointment of Lt Col (Retd) Abid Ali Khan, Director (Engr, BS-19) wef
May 3, 2012 to Mar 31, 2014.
Action By : Member (Admin)
14. Agenda Item 11
Fixation of Pay & Allowances in BS-19 & Payment ofArrears from the Date of Deferment to Mr Abdul
Hameed Qureshi, Retired Director (Accounts, BS-19)
Introduction - Working Paper
14.1. The case of Mr Abdul Hameed Qureshi, the then DD
(Accounts, BS-18) was placed before the DPC for consideration of his
promotion on Jan 19, 2004 against two promotion quota vacancies of
Director (Accounts, BS-19). The DPC recommended his super-cession
due to weak service record/discipline.
14.2. The NHA Executive Board is the authority competent for
appointments to posts in BS-18 to 19. Recommendations of the DPC
were placed before the Board (117th meeting of Mar 13, 2004). The Board
converted the recommendation for super-cession into deferment.
Necessary office order was issued on Mar 24, 2004 and its copy was
endorsed to the officer.
14.3. Mr Qureshi submitted a departmental representation /
appeal to MoC against his deferment. The MoC regretted the appeal
being time barred vide letter No 4(2)97/ Roads dated Aug 17, 2006.
14.4. After rejection of his departmental appeal, the officer
should have filed an appeal before the Federal Services Tribunal (FST),
within the statutory period of 30 days but he did not and thus
decision about his deferment for promotion to BS-19 attained finality.
-
8/9/2019 219 Executive Borad Meeting of NHA1
39/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
39
14.5. Mr Qureshi, however, again submitted a departmental
appeal on Dec 17, 2006 to the Chairman NHA against his deferment.
His case was processed and he was provided with a copy of MoC’s
letter dated Aug 17, 2006 on rejection of his departmental appeal.
14.6. Mr Qureshi was finally promoted as Director (Accounts,
BS-19) on the recommendation of the DPC dated Apr 30, 2009 and
notified vide Office Order dated Aug 5, 2009. On promotion, he
submitted an application dated Sep 1, 2009 for fixation of his pay &
allowances in BS-19 with payment of arrears wef the date of
deferment viz Mar 13, 2004.
14.7. Case was processed and submitted to the then ChairmanNHA, for rejection being not covered under the rules. Matter remained
inconclusive as the file remained pending with the then Chairman
NHA for a considerable length of time. After relinquishment of the
charge by the then Chairman NHA in Jan-2011, the Secretary NHA
returned the case on Jan 8, 2011 to the Admn Wing with directions of
Acting Chairman that the case be resubmitted afresh, if required.
14.8. Mr Qureshi is now pleading for pay fixation in BS-19 and
payment of arrears from the date of deferment on the analogy of the
following cases:-
a. Mr Arif Saeed Rana, DD (Accounts). He was also
deferred for promotion as Director (BS-19) on Jan 19,
2004 and after this promotion materialized wef Mar
13, 2006 was allowed pay fixation in BS-19 and
arrears of pay & allowances with retrospective effect
ie date of deferment by NHA Executive Board.
b. Mr Haroon Rao, AD (Adm). The recommendation of
DPC for his super-cession on disciplinary grounds
was endorsed by the Executive Board. However, the
FST declared this as unjust & unfair and directed
reconsideration of his promotion. The officer was
ultimately promoted as DD (Admn, BS-18) wef Aug
21, 2006 with retrospective benefits.
-
8/9/2019 219 Executive Borad Meeting of NHA1
40/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
40
14.9. The case of Mr Qureshi is not identical to that being
quoted by him as precedent; therefore, his plea is not justifiable. On
rejection of his departmental appeal / representation by the appellant
authority in MoC, he should have filed appeal against the said
decision before FST within stipulated time, but he opted not to.
14.10. Since Mr Qureshi has already superannuated wef Dec 8,
2009, the Executive Board is requested to consider his case on
humanitarian grounds for fixation of his pay in BS-19 and payment of
arrears with retrospective effect viz Mar 13, 2004 (date of deferment).
Board’s Deliberations
14.11. The MoC had conveyed certain written observations on
this agenda item. Tabulated response rendered by the Admin Wing in
respect of each observation is at Annex-H.
14.12. The Member (Admin) presented details.
14.13. The AS (Finance) observed that the proposal can not be
supported being not covered under the rules.
14.14. The Secretary NHA invited attention to the fact that the
super-cession of the officer was converted by the Executive Board to
deferment. Since no disciplinary shortcoming on his part ultimately
materialized, he was eventually promoted. Whereas, Mr Arif Saeed
Rana, whose case was identical in nature and was deferred in the
same Board meeting, was granted all back benefits, Mr Qureshi was
denied the equal opportunity and hence his case deserve similar
treatment on the basis of equality under FR-17(1) (Annex-J).
14.15. Proposal was discussed and regretted on plea that it is
not covered under the rules.
Decision
14.16. The Executive Board considered the proposal regarding
fixation of pay & allowances in BS-19 & payment of arrears from the
date of deferment to Mr Abdul Hameed Qureshi, retired Director
(Accounts, BS-19) but regretted on plea that it is not covered under
the rules.
Action By : Member (Admin)
-
8/9/2019 219 Executive Borad Meeting of NHA1
41/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
41
15. Agenda Item 12
Annual Maintenance Plan for FY 2012-13
Introduction - Working Paper
15.1. Introduction.
a. NHA, under its Act, is tasked to plan, promote,
organize, and implement programs for construction,
development, operation, repair and maintenance of
national highways. It is currently responsible formaintenance and upkeep of 12,131 km of federalized
national highways.
b. Challenges such as decrease in estimated revenue,
escalation in prices of construction materials,
increase in fuel & manpower cost, increase in
maintenance requirement, new federalization of
roads in poor condition, financial mismanagement of
RMA, blockade of collected revenues by O&M
operators of toll plazas and financing of PSDP
projects through RMA (road maintenance account), etc,
are placing extra burden on NHA in achieving RAMS
(Road Assets Management System) objectives/ targets.
c. Despite the paucity of resources, NHA has achieved
significant success by gradually increasing the
quality of maintenance through periodic overlays,
provision of rigid pavements at places of rutting,
replacement/rehab of dilapidated bridges, geometric
improvements, urban area development including
provision of facilities like service lanes, lighting, bus
bays, parking lots, underpasses, overhead bridges,
flyovers, fencing, etc, through toll revenue and
commercialization of its RoW.
-
8/9/2019 219 Executive Borad Meeting of NHA1
42/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
42
15.2. Road Condition Surveys & Strategic Analysis.
a.
In order to prepare Annual Maintenance Plan (AMP,2012-13) on scientific lines, pavement condition and
road roughness surveys, traffic counts, computation
of residual pavement strength by Falling Weight
Deflectometer (FWD) non-destructive testing, etc,
was undertaken. Thereafter, future road maintenance
funding needs were determined by using the Strategy
Analysis Module of the Highway Development and
Management Tools, HDM-4 Version 2.0.
b. The HDM-4 simulates total life cycle conditions and
costs for different rehab and maintenance activities,
and provides economic criteria for decision making.
The model computes total costs composed of road
agency and road user costs of the alternatives being
evaluated by estimating road deterioration and road
user costs over a period of 20 years.
c.
The model also compares the possible project
alternatives by computing the present value of the
net benefits (NPV) of the project alternatives
compared to the without project alternative, and
selects the ones with highest NPV in “free budget”
situation. Optimization of multiyear programs of
expenditure under budgetary constraints is done
using incremental benefit / cost analysis techniques,
as provided by the HDM-4 analysis.
15.3. Future Equipment & Technology Needs.
a. Traffic data is used for different types of studies
carried out both at organizational level as well as for
formulation of national level strategies. It is being
collected manually only at selected points across
Pakistan by RAMS and only for one day duration.
-
8/9/2019 219 Executive Borad Meeting of NHA1
43/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
43
b. Important factors like growth can be achieved by
using an automatic counting system which is robust
and easily manageable. RAMS carried out extensive
study and has recommended automatic infra-red
portable traffic counters in this budget.
c. In-situ pavement strength is important for deciding
pavement maintenance strategy at any point in time.
This can be done by state-of-the-art FWD Machine.
The existing machine with NHA is more than 16
years of age and has passed its useful life. Now, NHA
has to procure a latest vehicle mounted High Weight
Deflectometer (HWD) for improved decision making
for pavement maintenance alternatives.
15.4. International Roughness Index. The present average
network roughness is 5 IRI (9147 km) compared to 10 in 1998-99 for
a network of 8039 km. This is because NHA shifted its focus from
rehab to periodic (functional & structural) overlays. Current overall
network status is as follows:-
a. 10.42% is in good condition (2 to 3 IRI).
b.
32.98% is in fair condition (3 to 4 IRI).c. 30.55% is in poor condition (4 to 6 IRI).d. 26.05% is in very poor condition (more than 6 IRI).
15.5. Budget Scenario.
a. Detailed analysis with different budget scenarios
revealed that the level of expenditures required for
maintaining NHA network comes to the tune of Rs
26.6 billion. [About Rs 19 billion in first year and Rs 48billion in second year for rehab and periodic maintenance
(structural & functional overlays) alone and Rs 2.315 billion for
routine maintenance, Rs 4.75 billion for other maintenances
and 0.570 billion for admin, sports, other activities and
functioning of HRTC at unconstrained level in each year].
b. NHA, however, has a resource envelope of only Rs
17.314 billion for FY 2012-13. Hence a maintenance
backlog will be created in 1-2 years time, in case
additional funding is not injected to boost upmaintenance funding.
-
8/9/2019 219 Executive Borad Meeting of NHA1
44/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board’s Confirmed Minutes
44
15.6. Twenty Year Rollover Maintenance Plan (FY 2010-11 – FY 2030-31).
a. The AMP 2012-13 includes a Rollover Program for
future maintenance needs of Rs 264.11 billion.Analysis reveals that in next 20 years, despite
numerous rehab projects, including donor assisted,
NHA would be required to undertake overlays of
different forms on its network. If this is done, the IRI
would be brought down to level 3 - 4 indicating
substantial improvements.
b. The afore-stated maintenance spending is only for
rehab and pavement overlays. Routine maintenanceneeds and other spending which arise on need basis
on some emergency / unforeseen situations are not
included in the figure of Rs 264.11 billion.
15.7. Financial Resources (2012-13).
Description Rs in M
a. GoP maintenance grant 2,000.000
b. GoP grant for maintenance of KKH -
Skardu (S-1)
70.000
c. GoP grant for maintenance of Thakot
-Khunjerab (KKH)
240.000
d. Net revenue available (estimated) 15,003.583
e. Total Budget 17,313.583
15.8. Conclusion. To maintain and upkeep its network, NHA
required Rs 26.6 billion in AMP 2012-13 as per the HDM-4 program
analysis (unconstrained), however, due to financial constraint, AMP of Rs
17,313.583 million has been prepared.
15.9. Technical Clearance. The “RMA Technical Scrutiny Party”
and “RMA Steering Committee” have scrutinized and recommended
the AMP 2012-13 for approval.
15.10. Proposal. NHA Executive Board is requested to approve
the AMP 2012-13 of Rs 17,313.583 million.
-
8/9/2019 219 Executive Borad Meeting of NHA1
45/66
219th Meeting, July 24, 2012, Islamabad
NHA Executive Board