221 Executive Borad Meeting of NHA

NHA Executive Boards Confirmed Minutes
NATIONAL HIGHWAY AUTHORITY

Secretariat Section
CONFIRMED MINUTES
Subject:-
221st Meeting of the NHA Executive Board Held on

September 25, 2012 at Islamabad
1.
Introduction
1.1.
The 221st meeting of the Executive Board of the National
Highway Authority was held at 1030 hours on Sep 25, 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 Aug 17, 2012.
2.2.
The Chairman intimated that consequent to an in-house
change, Mr Raja Nowsherwan, Member (MW/BOT) has swapped the
position of Member (Planning) with Mr Sabir Hasan. He greeted Mr
Nowsherwan on joining the Executive Board by virtue of his new
appointment and expressed the hope that the Board would benefit
from his immense knowledge and experience.
2.3.
The Chairman conveyed that PAC (Public Accounts Committee)
on Aug 29, 2012 directed placement of the agenda / minutes of Board
meetings on the website of NHA starting from Jul 1, 2012 adding that
the directions have been complied with. Another direction was that
the agenda should be approved by MoC prior to placement before the
Board. The PAC was informed that NHA is already following this
practice although composition of the Board includes a Rep of MoC.
221st Meeting, September 25, 2012, Islamabad
2.4.
The Chairman also provided an update on the briefing of
the Prime Minister on mega projects of NHA held on Sep 21, 2012.
Earlier, he was also afforded an opportunity of a one-to-one meeting.
During formal presentation, the Prime Minister was very focused and
directed that NHA should accord priority to projects in Balochistan so
that Gwadar is linked directly with upcountry in addition to the
linkage through Makran Coastal Highway.
2.5.
It was explained that NHA is facing serious law & order
challenges for completion of Gwadar - Turbat - Hoshab Road (M-8). All
three project packages were assigned to local contractors but even
they have demobilized because of security threats. Similarly,
construction of Hoshab - Panjgur - Nag - Basima - Sorab Road (N-85)
has also got delayed as FWO opted to demobilize in 2010 on nonpayment of certified liabilities and security concerns.
2.6.
It was suggested that Gwadar-Turbat-Hoshab Road (M-8)
may be entrusted to FWO for completion of balance works now that
they have consented to remobilize on N-85. For providing security on
these projects and few other vulnerable points in Balochistan
including Mastung area (N-25), NHA is proposing creation of a full
wing of Frontier Constabulary dedicated for NHA through special
budget provision by the Finance Division for Ministry of Interior.
2.7.
The Prime Minister was pleased to accord approval, in
principle, for handing over Gwadar - Turbat - Hoshab Road (M-8) to
FWO once it remobilizes on N-85. The Prime Minister also approved
deployment of FC on these projects and also Khori - Wangu Hills
Project (M-8) for provision of security cover and even expressed
willingness to the deployment of Army troops so that these long
awaited projects are completed at priority.
2.8.
The Chairman added that because of peculiar nature
terrain construction of M-8 and N-85 includes a large number of
culverts and bridges. In order to save on time and ease traffic, NHA is
contemplating different options including provision of steel structures.
2.9.
The Prime Minister urged upon NHA to accord priority to
projects with 80% or above progress to ease burden on PSDP and
lessen the impact of inflation (escalation). This is essential at this point
in time as national elections are in the offing & completion of different
projects would be registered as present governments achievement.
2.10.
The Prime Minister would like to inaugurate the mega
projects to be completed by NHA in near future and will be visiting
Gilgit-Baltistan on Sep 28, 2012 for groundbreaking of the project
Realignment of Karakoram Highway (KKH) at Barrier Lake Attaabad,
Hunza. He would also inaugurate around 189 km completed stretch
of Raikot - Khunjerab Project (335 km) being constructed by China
Road & Bridge Corporation.
2.11.
The Chairman also talked about construction of Karachi Hyderabad Motorway (M-9) stating that subsequent to issuance of
default notice to the BOT Concessionaire M/s Bina Puri no further
progress has been achieved except provision of a letter from Maybank
of Malaysia with a term sheet for the project financing facilities but no
commitment on provision of finances. M/s Bina Puri has also failed to
indicate the exact date by which they would mobilize on the project
through own resources in anticipation of the financial close, as
committed by them during negotiation process.
2.12.
The Chairman added that a draft summary for the Prime
Minister has also been submitted by NHA to MoC for seeking further
directions regarding re-advertisement of the project in case of failure
on the part of M/s Bina Puri to achieve financial close during the
grace period available to them or to enter into negotiation with the
consortium led by M/s EOBI (Employees Old-Age Benefits Institution). The
MoC has made certain observations, which NHA is yet to respond.
2.13.
The Chairman also apprised the Board about the likely
USAID assistance for the following projects:a.
Peshawar-Torkham (N-5) (upgradation) USD 67 million.
b.
Kalat - Quetta - Chaman (N-25) (balance works &

bypasses for Kuchlac & Chaman and dualization of road from
Kuchlac - Pishin intersection)
USD 30 million (tentative).
2.14.
The MoU between USAID, EAD, FATA Secretariat & NHA
for Peshawar-Torkham Road has already been signed and negotiations
for the other road are ongoing. Because of the peculiar security
situation prevailing in the areas through which these roads traverse,
USAID has suggested assignment of the task of construction to FWO.
The Peshawar - Torkham Road Project will be supervised by the FATA
Secretariat and NHA will only monitor the quality of works.
2.15.
The Chairman also conveyed that NHA has received the
first PSDP tranche for 2012-13 of Rs 4.92 billion. This is the first
release received by NHA after Feb-2012 & has already been disbursed.
FORMAL BOARD PROCEEDINGS
3.
Agenda Items
3.1.
The Secretary NHA stated that 14 x working papers were
distributed on Sep 17, 2012 after seeking clearance of MoC. Subjectwise distribution is as follows:-
a.
b.
c.
d.
e.
f.
Matter
Minutes
CSR-2011
Award of Works (FERP)
Consultancy Issues
Operational Issues
Admin Issues
Total
No
1
1
2
5
2
3
14
3.2.
The Secretary NHA added that following working papers
will be tabled if permitted by the Board:-
4.
a.
Addendum-3 of M/s EA Consulting, Supervision

Consultants for Improvement of Inner City Ring Road
Project, Multan.
b.
Appointment of Auditors for Audit of NHA Accounts.
c.
Toll O&M Contract of Gujranwala Toll Plaza.
d.
Toll O&M Contract of Bahawalpur Toll Plaza
Agenda Item 1
Confirmation of Minutes - 220th Meeting of the
Executive Board Held on Aug 17, 2012
4.1.
The Secretary NHA solicited confirmation of minutes of
th
the 220 Executive Board meeting held on Aug 17, 2012 conveying
that the same were circulated on Sep 17, 2012 and no written
comments / observations have been received from any Member.
4.2.
The VP-NESPAK referred to Para-8 of the minutes
regarding construction of two service areas on Islamabad - Peshawar
Motorway (M-1) at River Haro on BOT basis and stated that according
to Clause-14.2 of the Concession Agreement ancillary facilities such
as service stations, cargo terminal, trucking station, warehouse and
any other facility which may be created / operated by the
Concessionaire at a later date would be apparently without sharing
revenues with NHA. Although NHA has answered various questions
raised by him vide Annex-C of the minutes, he would suggest the
following:-
4.3.
a.
A clear clause regarding revenue sharing of the

ancillary facilities to be created at a later date may
also be included in the Concession Agreement.
b.
All proposals regarding creation of ancillary facilities

should also come to the Executive Board for prior
approval.
The Member (Planning) rendered following clarifications:a.
According to Clause-14.2 of Concession Agreement,

the Concessionaire shall retain all revenue received
from the operations, if any, of the ancillary facilities,
and such revenue shall be deposited in the project
collection account and disbursed in accordance with
the Agreement.
b.
Since the cost and revenue of ancillary facilities,

whenever built, will be a part of the Financial Model
and the revenue earned shall also be shared by NHA
and as NHA has included a provision of percentage of
revenue share or fixed guaranteed revenue,
whichever is greater, any increase in gross revenue
shall increase the revenue share of NHA.
c.
The ancillary facilities, if any, will become NHAs

property at the end of the concession.
d.
The observation regarding approval of ancillary

facilities by the Executive Board has been noted for
compliance.
Note.
4.4.
NHA (PPP Cell) has issued letter No 2(48A)-NHA/PPP/M1/12/386 dated Oct 10, 2012 to the Concessionaire viz M/s
Petrosin Engineering for inclusion of a suitable Clause 14.3 in
the Concession Agreement (Annex-B)
Minutes were accepted for confirmation.
Decision
4.5.
The Executive Board confirmed minutes of 220th meeting
held on Aug 17, 2012 with following amendments:a.
The discussion at Paras 4.2 & 4.3 above will be

suitably incorporated in the minutes.
b.
In Additional Agenda Item I titled Award of Work

for Widening / Improvement of Road from Tateypur
to Pull Chatta via Kothay Wala, District Multan
under the head Decision amend existing Para13.15 as follows:For:
This is subject to completion of codal

formalities.
Read:
This is subject to completion of codal

formalities including approval of PC-I.
Suggested by Chief (T&C)
Action By
5.
Secretary NHA
Agenda Item 2
NHAs Composite Schedule of Rates (CSR-2011)
Introduction - Working Paper

5.1.
Introduction. This issue was considered by the Executive
Board (215th meeting of Apr 23, 2012). Decision was as follows:The NHA Executive Board considered the working
paper seeking approval of CSR-2011 and decided that this
matter would be considered afresh in the next Board
meeting after NHA has presented comparative info / data
discussed in Para-13.33 above.
5.2.
Para-13.33 of the Minutes.

The JS (MoC) reiterated that the comparison of only
few selected items and that too of only Rawalpindi District
has been presented. He insisted that the comparison of
NHAs CSR rates for all items with that of PWD and the
C&W Deptts of all provincial governments be explained.
5.3.
Consultants Viewpoint. M/s SAMPAK regretted to provide
the requisite comparative report on plea that the nomenclature of NHA
specifications does not match with provincial specifications besides
machinery & equipment usage and items breakdown is different.
Moreover, NHA item rates are composite (complete in all respects including
materials, haulage, workmanship & equipment) whereas provincial MRS
(Market Rate System) is based on quarry rates excluding carriage cost
and actual haulage is calculated on project-to-project basis.
5.4.
Proposal. The Executive Board is requested to reconsider
and approve NHAs CSR-2011; which will be called CSR (Jan-2011).
Boards Deliberations
5.5.
The GM (Design-1) presented details. He explained that
consequent to M/s SAMPAKs refusal to provide required comparison
without entering into a fresh agreement, an in-house exercise was
undertaken. Comparison of items based on different specifications &
type of execution was like comparing apples with oranges.
Nevertheless, best effort was made to compare different items of CSR2011 with similar items of provincial departments.
5.6.
The GM (Design-1) presented comparison of CSR-2011
with following provincial MRS:a.
b.
c.
d.
Punjab Dec-2011 & Feb-2012 for District Lahore

Punjab Dec-2011 & Feb-2012 for District Rawalpindi
Sindh Dec-2011 for District Karachi
KPK Dec-2011 for District Peshawar
5.7.
Comparison depicted that CSR-2011 rates are reasonable
than provincial schedules. NHA specifications are also much more
advanced and based on usage of latest heavy machinery & equipment
besides strict quality control through supervision consultants. In
comparison most of provincial works are undertaken with less usage
of heavy duty equipment that too under departmental supervision.
5.8.
The GM (Design-1) added that NHA was also able to
obtain comparative statement of Provincial MRS based on 7 x
Engineers Estimates viz 3 of Punjab, 3 of Sindh and 1 of KPK. It also
confirms that estimates based on CSR-2011 are economical: a.
b.
c.
d.
(-)19.01% the estimates of Punjab.

(-)7.76% the estimates of Sindh.
+4.52% the estimate of KPK.
(-)18.46% the provincial estimates on an average.
5.9.
Comparison of 2 x lowest bids viz 1x Punjab and 1 x KPK
also show that CSR-2011 estimates are (-)10.77% the lowest bids.
5.10.
The Chief (T&C) enquired as to why NHA rates are less
despite high specifications.
5.11.
The Chief (NTRC) observed that the latest CSR is proposed
to be approved as CSR-2011 (Jan). Since around 20 months have
already passed, how much premium would be required to be added to
make the CSR up-to-date / realistic, he enquired.
5.12.
The Member (Planning) rendered the following detailed
explanation:a.
NHA rates are less despite higher specifications

because average lead is taken for various materials.
b.
NHA PC-Is are based on estimated quantities and

CSR rates that become outdated by the time the
lengthy approval exercise is completed. Therefore,
soon after tendering, revision of PC-I normally
becomes essential.
c.
The Engineers Estimates are not project specific but

general in nature, whereas, tendering is market
driven and rates offered by the Contractors depend
on method statement, capacity, resource allocation,
etc. Consequently, tendered rates vary substantially
vis--vis estimated cost.
d.
The CSR-2011 (Jan), though now under process for

approval, has already become outdated. Therefore, it
is desirable if 10% premium is allowed to cater for
unabated inflation and increase in cost since Jan2011. However, NHA will suggest specific premium
after detailed analysis in the next Board meeting.
5.13.
The Chairman added that construction contracts were
previously being awarded at upto +40% the estimated cost based on
CSR-2009 + 9.1% premium. However, by improving the system of prequalification and tendering, the variation has been brought down to as
low as 25% despite the continued inflationary impact.
5.14.
The Chairman further remarked that the revision of CSR
was kept pending for quite some time because of in-house debate on
its application on maintenance contracts. He stated that allowance of
10% overhead charges and 15% profit ie 25% premium is already
admissible in the CSR and this cushion for maintenance contracts is
on very high side and needs review.
5.15.
The AS (Finance) observed that Government of the Punjab
is very prompt in periodic / regular revision of MRS but NHA is taking
too much time in revising its CSR. Effort should be to update the CSR
on regular basis to eliminate the need for addition of premium (or
discount). Moreover, the CSR should also reflect market trends. He
would, therefore, recommend approval of CSR-2011 with directions for
preparation & approval of CSR-2013 by Mar 1, 2013.
5.16.
The GM (Design-1) responded that since NHA has now
secured necessary software for the purpose, it would be ensured that
the CSR is promptly updated on regular basis and that too in-house.
He only requires necessary wherewithal for data collection. The
software has the capacity to prepare separate CSR for maintenance.
5.17.
The Member (Planning) remarked that once CSR is
updated on regular basis, preparation of project specific Engineers
Estimates including identification of sources/quarries would be added
to the Design Consultants ToRs. However, for maintenance, districtwise rates would be applicable.
5.18.
The AS (Finance) observed that preparation of project
specific ToRs might lead to wrongdoings / manipulations. Therefore, it
is desirable if reference point is kept flexible. However, the CSR should
reflect the market position at a given point of time.
5.19.
The VP-NESPAK endorsed this opinion with remarks that
current system is workable and may continue. Since the maintenance
contractors are not required to arrange / mobilize sophisticated and
costly equipment and also not huge paraphernalia, a different rate of
premium (or discount) could be decided for maintenance works.
5.20.
The VP-NESPAK observed that to assess as to how much
premium would be required to be applied on CSR-2011 (Jan) to make
it up-to-date / realistic, the statement of bids received since Jan-2011
and the variation vis--vis CSR-2011 be prepared and submitted for
perusal by the Executive Board.
5.21.
Matter was discussed and CSR-2011 (Jan) was cleared for
application along with the direction that the info / data asked for vide
preceding Para be submitted in the next Board meeting. The data
should also suggest separate premium (or discount) to be applied on
construction projects and maintenance works.
Decision
5.22.
The Executive Board approved NHAs Composite Schedule
of Rates-2011 to be called CSR-2011 (Jan).
5.23.
The Board also directed NHA to furnish the statement of
bids received since Jan-2011 showing variation vis--vis CSR-2011 to
assess as to how much premium would be required to be applied on
CSR-2011 (Jan) to make it up-to-date / realistic. The data should
suggest separate premium (or discount) to be applied on construction
projects and maintenance works.
Action By
Member (Planning)
10
6.
Agenda Item 3
Hiring of Consultancy Services for Construction
Supervision of Relocation of KKH from Shatial to
Thor Including Link Road (Bypassing Bhasha Dam Site)

6.1.
Introduction. A working paper seeking approval of the
following proposals was placed before the NHA Executive Board (209th
meeting of Nov 3, 2011):-
6.2.
a.
Detailed design fees of NESPAK for realignment

portion on relocation of KKH (R-1, 4 km) and link
road connecting existing KKH at Thor (3.75 km) (Total
= 4.0+3.75 = 7.75 km) for Rs 4 million.
b.
Design supervision fees of NESPAK for relocation of

KKH (R-1, 31.2 km) including realigned portion (4
km) and link road connecting existing KKH at Thor
(3.75 km) (Total = 31.2 + 4.0 + 3.75 = 38.95 km) @ 1% of
Engineers Estimate (Rs 4702.339 million).
Boards Decision.
a.
As WAPDA was then insisting for change of executing

agency for construction of Shatial Bypass from NHA
to WAPDA & issue concerning provision of funds was
yet unsettled, the Board approved a above only and
decided that appointment of NESPAK for assignment
b would be considered later.
b.
The Secretary (MoC) / Principal Accounting Officer

(PAO) later endorsed the approval accorded by the
Board discussed in Para-6.2(a) above.
6.3.
Financial Proposal. NESPAK submitted financial proposal
of Rs 60.008 million for construction supervision of Relocation of
KKH (R-1) from Shatial to Thor including link road (bypassing Bhasha
Dam site). They were called for negotiation with NHAs negotiation
committee on Jun 22, 2011. After deliberations, following was agreed:-
11
a.
Since tender drawings were made by NESPAK on

behalf of WAPDA, construction drawings for NHA shall
have to be made by supervisory consultant who shall
take considerable charges for that.
b.
Construction supervision of Relocation of KKH (R-1)

from Shatial to Thor including link road (by passing
Bhasha dam site) - Total length 38.95 km @ 1% of
Engineers Estimate (Rs 47,023,391/-) instead of
1.27% (Rs 60,008,260/-)
6.4.
Procurement of Works. After conclusion of a MoU between
WAPDA & NHA and release of first tranche of Rs 300 million by WAPDA
for this deposit work, contract for construction of Relocation of KKH
(R-1) from Shatial to Thor including link road (bypassing Bhasha dam site)
has been awarded to M/s Hakas (Pvt) Ltd for Rs 3518 million.
6.5.
Proposal. Clearance for hiring of the services of NESPAK
for construction supervision of Relocation of KKH (R-1) from Shatial
to Thor including link road (bypassing Bhasha Dam site) - Total length
38.95 km at a cost of Rs 47,023,391/- subject to approval by the PAO.
6.6.
The Member (Planning) presented details.
6.7.
On a query as to why the PPRA Rules were not followed,
the following explanations were rendered:a.
Project traverses virgin land and entails delicate task

of controlled blasting to ensure that the area is not
destabilized not simply with regard to construction of
the road but also in the long term perspective of
construction of Bhasha Dam and its widespread
reservoir ie going to be created.
b.
NESPAK possesses requisite geotechnical expertise

and also the project was designed by them. It was,
therefore, considered technically advisable to hire
their services on single source basis.
12
6.8.
c.
Cost of supervision consultancy is around 1.34% the

construction cost and quite competitive as upto 3%
is considered reasonable.
d.
Matter regarding construction of Shatial Bypass by

NHA remained in limbo for quite some time as
WAPDA wanted to execute this project itself on plea
that this was the requirement of the donors for
Bhasha Dam project.
e.
Consequently, the matter went upto ECNEC and

even after decision by this high forum, WAPDA was
reluctant to accept execution of this project by NHA
and it was only when the first tranche of Rs 300
million was released by WAPDA in Jun-2012 that
NHA was able to move ahead.
f.
Tendering for this project was held as far back as in

Jul-2011 and the lowest evaluated bidder could not
have been compelled to keep the bid valid indefinitely
and now that the works have been formally awarded,
the Contractor is pressing for early mobilization of
the supervision staff.
g.
Matter after clearance by the Executive Board would

be submitted to the PAO for approval in terms of
Para-3(D) of Public Procurement Regulations for
Procurement of Consultancy Services Regulations2010 notified by Cabinet Division (Annex-C).
Matter was discussed and cleared by the Members.
Decision
6.9.
The Executive Board cleared hiring of the services of
NESPAK for construction supervision of Relocation of KKH (R-1) from
Shatial to Thor including link road (bypassing Bhasha Dam site) - Total
length 38.95 km at a cost of Rs 47,023,391/- (Rupees forty seven million,
twenty three thousand, three hundred & ninety one) only subject to approval by
the Principal Accounting Officer.
Action By
Member (Planning)
13
7.
Agenda Item 4
Award of Works: Flood Emergency Reconstruction
Project (FERP)/ADB/NCB Rehab of Mansehra - Naran
- Jhalkhad - Chillas (N-15, Pack-I): NCB-N-04 BasianBalakot (Km 34 - 38)

7.1.
7.2.
ADB Loan/ Scope of Work.

a.
Pakistan has received a loan from ADB towards the

cost of FERP (Flood Emergency Reconstruction Project)
under Loan PAK 2742.
b.
Project NCB-N-04 Pack-I, Rehab of Mansehra Naran - Jhalkhad - Chillas Road (N-15): Basian Balakot (Km 34 to 38) is included in FERP (Phase-I).
Global PC-I.
a.
Global PC-I of FERP based on DNA (Damage Need

Assessment)
study conducted by NESPAK was
presented in ECNEC meeting held on May 26, 2011.
The ECNEC approved the PC-I, in principle, with the
following instructions:The ECNEC considered the summary dated May 4, 2011
submitted by the Planning Commission titled Rehabilitation of
National Highway Network Damaged due to Unprecedented
Monsoon Rains & Flash Floods 2010 and approved the project,
in principle, and authorized Dy Chairman Planning Commission
/ Chairman CDWP to approve the reviewed scope and cost of
project duly vetted by the high level Committee constituted by
the CDWP.
b.
Revised PC-I is under preparation and included in

the deliverables of 3 x design consultants.
7.3.
Engineers Estimate. Rs 94,813,543/- (CSR-2009 + 9.1%).
7.4.
Tendering.
a.
NHA and ADB agreed that in accordance with ADBs

guidelines, the procurement of subject works shall be
made on single-stage-two-envelope basis.
14
b.
It was also agreed that escalation will not be allowed

in contracts upto 12 months. As duration of subject
project is 12 months, escalation is not applicable.
c.
Original date for submission of bids as advertised on

ADB website was Apr 16, 2012. It was extended to
Apr 27, 2012 due to the issue of non-publication of
the IFB (Invitation for Bids) in the local press on the
original date.
d.
In response to IFB, bid documents were procured by

eleven (11) eligible firms individually or as JV.
Bidders had the option to download bidding
documents from NHA website also. Seven (7) firms
submitted technical & financial bids:-
i.
ii.
iii.
iv.
v.
vi.
vii.
7.5.
Messers
Rustam Associates Dynamic
Constructors (JV)
Frontier Works Organization
Wajid Iqbal & Co
Mohammad Haroon & Sons
Badi-Uz-Zaman Khan & Co
Luqman Brothers Construction Co
AM & Company
Legend
Rustam (JV)
FWO
Wajid
MHS
BZKC
Luqman
AMC
Technical Evaluation.
a.
Technical bids were opened Apr 27, 2012 by the Bid

Opening
&
Evaluation
(BO&E)
Committee
constituted in accordance with NHA Code in the
presence of Reps of the bidders. Price bids were kept
unopened and sealed in safe custody.
b.
Technical bids were evaluated in accordance with

approved qualification criteria stipulated in bidding
documents. Bids at Sl v to vii above were
evaluated as unqualified.
c.
Technical Bid Evaluation Report

approved by ADB on Jun 27, 2012.
(TBER)
was
15
7.6.
Financial Bids. These were opened on Jul 2, 2012 in the
presence of the BO&E Committee. The quoted/announced bids were
as summarized below:Messers
Rupees
a.
Rustam (JV) Dynamic
93,739,500
b.
Wajid Iqbal & Company
108,535,527
c.
Mohammad Haroon & Sons
120,321,000
d.
120,542,854
7.7.
Bid Evaluation. Bids were evaluated in accordance with
ADBs standard procedures. There were certain typographic and
arithmetic errors in the bid of only M/s Wajid Iqbal & Co.
7.8.
Summary. Summary of evaluation indicating comparative
position vis--vis the estimate of Rs 94,813,543 (CSR-2009 + 9.1%):Lowest
Ranking
Contractor
(M/s)
Announced
Bid (Rs)
Corrected
Bid (Rs)
Variation
1st
Rustam (JV)
93,739,500
93,739,500
(-)01.13%
2nd
Wajid
108,535,527
108,535,490
+14.47%
3rd
MHS
120,321,000
120,321,000
+26.90%
4th
FWO
120,542,854
120,542,854
+27.14%
7.9.
ADBs Concurrence The Priced Bid Evaluation Report was
forwarded to ADB for concurrence on Jul 6, 2012. ADBs no objection
for award of works to M/s Rustam (JV) has been received.
7.10.
LoA. After grant of anticipatory approval by the Chairman
NHA, letter of acceptance has been issued.
7.11.
Recommendation. The Tender Acceptance Committee has
recommended that contract for Rehabilitation of MansehraNaran
Jhalkhad Chillas Road (N-15): NCB-N-04 Pack-I: Basian - Balakot
(Km 34 to 38) be awarded to M/s Rustam Associates (JV) Dynamic
Constructors at their quoted/evaluated bid price of Rs 93,739,500/-.
16
7.12.
The Member (Planning) presented details. On a remark if
the rates below the estimated cost are workable, he clarified that the
Contractors tend to offer bids according to their own convenience eg
they may offer comparatively lower bid if their machinery & equipment
is lying idle or if they are already mobilized in the vicinity. M/s
Rustam (JV) Dynamic being of local origin have opted to offer a bid
which is marginally lower than the estimated cost. The fact that they
were pre-qualified despite stringent conditions under the ADB
guidelines is a reasonable proof that they possess required capability.
7.13.
The JS (MoC) referring to the fact that escalation would
not be allowed, the contract being of less than 12 months duration,
enquired as to what would be the case if the project is delayed
particularly when the working season in Naran area is very restricted.
7.14.
The Member (Planning) clarified that the decision in this
regard would be taken strictly in accordance with the conditions of
contract depending upon the circumstances causing delay. If the delay
is attributable to NHA or is because of force majeure, the Contractor
would be entitled to escalation and if the delay is because of the
Contractors fault, liquidated damages would be applied.
7.15.
The VP-NESPAK remarked that in case the project goes
beyond 12 months, and escalation is ultimately payable, it should be
ensured that escalation is not allowed on works completed within first
12 months.
7.16.
The Chief (T&C) pointed out that the PC-I of FERP is yet
unapproved. When it was previously considered by ECNEC, the CDWP
was authorized to review the authenticated data to be submitted by
NHA after detailed design without the need for a fresh reference to
ECNEC. However, he has now learnt that the cost has increased from
Rs 23 billion to Rs 32 billion, therefore, owing to major increase in
scope and cost, the amended PC-I will again be considered by the
Planning Commission.
17
7.17.
The Chairman explained that global PC-I of Rs 23.6 billion
was prepared by M/s NESPAK based on visual inspection and
tentative rehabilitation cost (CSR 2009 + 9.1%). After completion of all
design activities, the number of schemes has increased from 33 to 46
but the overall scope remains the same. The schemes included few
based on the recommendations of the Federal Flood Commissions
Inquiry Report conducted on the directions of the Supreme Court.
7.18.
A loan agreement for FERP-2010 was signed between GoP
& ADB on Mar 30, 2011. The value of NHA component is USD 278
million including USD 245 million for civil works. The ADB had fixed
Sep 30, 2012 as deadline for finalizing bidding for all packages but
adherence to the same is not possible. Bidding proceeds of at least 6
packages are pending with ADB itself at their headquarters in Manila.
NHA is pursuing with the Bank for extension of the deadline and
inclusion of all the project packages by enhancing the loan amount.
7.19.
As per the detailed design prepared by 3 x Consultants,
the rehab cost under FERP is now Rs 30.572 billion instead of Rs
18.672 billion. Cost of NHA establishment, contingences, design &
supervision, anticipated increase in escalation during execution, land
& structure compensation, relocation of utilities, environmental
works, etc, would be in addition. This is under calculation by M/s
NESPAK who are consolidating the revised PC-I; which on finalization
will be submitted to the Planning Commission after clearance by NHA
Executive Board.
7.20.
A detailed update on FERP including ADB loan & Chinese
grant is at Annex-D.
7.21.
The matter was cleared after detailed discussion.
Decision
7.22
The Executive Board approved award of contract for
Rehabilitation of Mansehra - Naran - Jhalkhad - Chillas Road (N-15):
NCB-N-04 Pack-I: Basian - Balakot (Km 34 to 38) to M/s Rustam
Associates (JV) Dynamic Constructors at their quoted/evaluated bid
price of Rs 93,739,500 (Rupees ninety three million, seven hundred & thirty
nine thousand and five hundred) only; which is (-)01.13% the Engineers
Estimate of Rs 94,813,543 (CSR-2009 + 9.1%) subject to completion of
codal formalities.
Action By
Member (Planning)
18
8.
Agenda Item 5
Flood Emergency Reconstruction Project (FERP)/ADB
/NCB Rehabilitation of Mansehra - Naran - Jhalkhad Chillas Road (N-15, Pack-II): NCB-N-05 Mahandri Naran (Km 89 to 119)

8.1.
8.2.
ADB Loan/ Scope of Work.

a.
Pakistan has received a loan from ADB towards the

cost of Flood Emergency Reconstruction Project
(FERP) under Loan PAK 2742.
b.
NCB-N-05 Pack-II, Rehab of Mansehra - Naran Jhalkhad - Chillas Road (N-15): Mahandri - Naran
(Km 89 to 119) is included in FERP (Phase-I).
Global PC-I.
a.
Global PC-I of FERP based on DNA (Damage Need

Assessment) study conducted by NESPAK was
presented in ECNEC meeting held on May 26, 2011.
The ECNEC approved the PC-I, in principle, with the
following instructions:The ECNEC considered the summary dated May 4, 2011
submitted by the Planning Commission titled Rehabilitation of
National Highway Network Damaged due to Unprecedented
Monsoon Rains & Flash Floods 2010 and approved the project,
in principle, and authorized Dy Chairman Planning Commission/
Chairman CDWP to approve the reviewed scope and cost of
project duly vetted by the high level Committee constituted by the
CDWP.
b.
Revised PC-I is under preparation and included in

the deliverables of design consultants.
8.3.
Engineers Estimate. Rs 848,962,800/- (CSR-2009 + 9.1%).
8.4.
Tendering.
a.
NHA and ADB agreed that in accordance with ADBs

guidelines for civil works, the procurement of works
shall be made on single-stage-two-envelope basis.
19
b.
It was also agreed that escalation will not be allowed

in contracts upto 12 months. Duration of subject
project being 15 months, escalation is applicable.
c.
Original date for submission of bids as advertised on

ADB website was Apr 16, 2012. It was extended to
Apr 27, 2012 due to the issue of non-publication of
the IFB (Invitation for Bids) in the local press on the
original date.
d.
Bid documents were procured by fourteen (14)

eligible firms individually or as JV. Only five (5)
submitted technical and financial bids:Messers
i.
ii.
iii.
iv.
v.
8.5.
Rustam Associates (JV) Dynamic

Constructors
Khattak Allied Construction Co (JV)
AM Associates
Behram Construction Co
AM & Company
Legend
Rustam (JV)
FWO
Khattak (JV)
Behram
AM & Coy
Technical Evaluation.
a.
Technical bids were opened on Apr 27, 2012 by the

specified Bid Opening & Evaluation (BO&E)
Committee constituted in accordance with NHA Code
in the presence of Reps of the bidders. Price bids
were kept unopened and sealed in safe custody.
b.
Technical bids were evaluated in accordance with the

qualification criteria stipulated in the bidding
documents. Only one (1) bid ie of M/s AM & Coy was
evaluated as unqualified.
c.
Technical Bid Evaluation Report

approved by ADB on Jun 27, 2012.
(TBER)
was
8.6.
Financial Bids. These were opened in the presence of the
BO&E Committee on Jul 2, 2012. The quoted / announced bids are
summarized below:221st Meeting, September 25, 2012, Islamabad
20
Messers
Rustam (JV) Dynamic
Behram
FWO
Khattak (JV) AMA
a.
b.
c.
d.
Rupees
844,545,925
855,333,448
1,059,309,703
1,068,394,950
8.7.
Bid Evaluation. Bids were evaluated in accordance with
ADBs standard procedures and also checked for arithmetic errors. No
typographic/arithmetic errors were found.
8.8.
Summary. Summary of evaluation indicating comparative
position vis--vis the estimate of Rs 848,962,800 (CSR-2009 + 9.1%):Lowest
Ranking
1st
2nd
3rd
4th
Contractor
(M/s)
Rustam (JV)
Behram
FWO
Khattak (JV)
Announced
Bid (Rs)
Corrected
Bid (Rs)
Variation
844,545,925
855,333,448
1,059,309,703
1,068,394,950
844,545,925
872,833,448
1,059,309,703
1,068,394,950
(-)00.52%
+02.81%
+24.78%
+25.85%
8.9.
ADBs Concurrence The Priced Bid Evaluation Report was
forwarded to ADB for review and concurrence on Jul 6, 2012. ADB
has conveyed no objection for award of works to M/s Rustam (JV).
8.10.
LoA. After grant of anticipatory approval by the Chairman
NHA, letter of acceptance has been issued.
8.11.
Recommendation. The Tender Acceptance Committee has
recommended that the contract for Rehabilitation of Mansehra Naran - Jhalkhad - Chillas Road (N-15): Mahandri - Naran (Km 89 to
119) included in FERP (Phase-I), be awarded to M/s Rustam
Associates (JV) Dynamic Constructors at their quoted / evaluated bid
price of Rs 844,545,925/-.
8.12.
The Member (Planning) presented details.
8.13.
The Chief (T&C) made the following observations:a.
In the past, NHA divided various projects into subpackages and the Contractors were allowed to bid for
only one package at a time. If a Contractor emerged
as the lowest bidder for one package, his bid for
other package(s) was returned unopened.
21
8.14.
b.
In the instant case, the same Contractor (JV) has

emerged as the lowest bidder for two close by
packages but the restriction discussed at a above
has not been applied. The reason may be explained.
c.
The rule under which the Chairman NHA accorded

anticipatory approval for issuance of LoA to the
lowest evaluated bidder may be indicated.
Following explanations were rendered:a.
Restriction regarding one package per contractor was

followed in the past for procurement of contracts for
NHIP (National Highway Improvement Program) to enhance
competition. The bidders were informed at the prequalification stage that they would be eligible to
secure only one package at a time under the least
price combination principle. The restrictions were
imposed after taking into account the capacity and
cash flow of each contractor and the combination for
various packages was approved by the World Bank &
notified to all prospective bidders prior to bidding.
b.
In present bidding no such restriction was imposed

and bidders were pre-qualified according to ADB
guidelines and the pre-qualification as well as
bidding process was reviewed and concurred by ADB.
c.
The Chairman NHA granted anticipatory approval for

issuance of LoA because of highly competitive nature
of the bid and the fact that projects under FERP have
been accorded high priority and also the ADB had
accorded clearance after threadbare examination.
8.15.
The Chief (T&C) wrt clarification at c above remarked
that formal SOPs should be developed for such purposes with the
approval of the Executive Board to avoid inherent complications.
8.16.
The VP-NESPAK observed that discretion in marking for
pre-qualification of Contractors should be minimized. It was explained
that a very objective eligibility criteria approved by ADB is prescribed
for the purpose and it leaves no chance for discrimination/ discretion.
22
8.17.
The Member (Planning) remarked that in the eligibility
criteria, performance of a Contractor on NHA project(s), if any, is not
included and thus not given any weightage. He plans to recommend
to ADB a report on the performance also for consideration.
8.18.
The Chairman added that construction is a big industry
and there is a need to encourage new players. For enhancing capacity
of our construction Contractors, NHA has asked ADB to allow import
of latest machinery & equipment under the FERP contracts.
8.19.
The matter was cleared after detailed discussion.
Decision
8.20.
The Executive Board approved award of works for
Rehabilitation of Mansehra - Naran - Jhalkhad - Chillas Road (N-15):
Mahandri - Naran (Km 89 to 119) included in FERP (Phase-I), to M/s
Rustam Associates (JV) Dynamic Constructors at their quoted/
evaluated bid price of Rs 844,545,925/- (Rupees eight hundred & forty four
million, five hundred & forty five thousand, nine hundred & twenty five) only;
which is (-) 00.52% the Engineers Estimate of Rs 848,962,800 (CSR2009 + 9.1%).
Action By
9.
Member (Planning)
Agenda Item 6
Addendum 4 of M/s LRA Group: Construction
Supervision Consultants for Gwadar - Turbat - Hoshab
Road (M-8)

9.1.
Introduction. The Gwadar - Turbat - Hoshab Road (193.3
km) is part of Motorway (M-8) aimed to provide strategic linkage
between Ratodero on Indus Highway (N-55) and Gwadar on Makran
Coastal Highway (N-10) through Khuzdar on National Highway (N-25).
M-8 on completion will open inaccessible parts of Balochistan for
socio-economic development / uplift of the province and integration
into mainstream economic activity of Pakistan.
23
9.2.
Ongoing Projects on Gwadar-Turbat-Hoshab Road.

Sec
Pack
I.
I.
II.
*
II(A)
II(B)
II(A)*
Km
Contractor
(M/s)
Start
Original
Completion
53.60
63.45
76.25
AB & X
SMADB
HCL
Sep-2004
Sep-2004
Oct-2004
Sep-2006
Sep-2006
Sep-2006
Including additional work of link/service road and bridge from adjoining villages to M-8.
AB&X
SMADB
HCL
:
:
:
M/s Ayaz Builders & Xinjiang Beixin (JV)

M/s Sardar M Ashraf D Baloch
M/s Husnain Cotex Ltd
9.3.
Contractors EoTs. Enhanced scope/other extenuating
reasons including precarious law & order situation & flash floods in
2005 & 2007 delayed the project compelling grant of four EoTs:Sec
I.
Pack
II(A)
1st
Sep-2007
2nd
Jun-2008
3rd
Dec-2008
I.
II.
II(B)
II(A)
Sep-2007
Sep-2007
Jun-2008
Jun-2008
Dec-2008
Dec-2008
4th
Financial closing
under process
Dec-2010
Apr-2011
9.4.
Scope. Scope of work of all three contracts has increased
causing cost escalation:Rupees in Million
Sec
I.
I.
II.
Pack
II(A)
II(B)
II(A)
Total
Original
1499.781
1699.950
1932.758
5132.489
Revised
2493.524
3686.714
3466.489
9646.727
Increase
+63.18%
+116.87%
+63.83%
+87.95%
9.5.
Consultants. M/s LRA Group (LRAG) comprising Loya
Associates, Republic Engineering Corporation and AA Associates are
the Supervisory Consultants. Consultancy agreement of Rs 29.024
million was signed in 2004 for 24 months that expired in Sep-2006.
9.6.
Addendums-1 to 3R.
Addendums
1.
2.
3R.
Rationale
Personnel re-appropriation
Rupees
6,106,268
Variation
+21.04%
1,820,873
62,733,837
+6.27%
+216.14%
70,660,978
+243.45%
Additional staff
Additional staff and increase in scope
of work with revised charge rates
Total
24
9.7.
9.8.
Extensions.
a.
Consequent to grant of 1st EoT to the Contractors,

the Consultant was granted EoT upto Sep-2007 with
the Chairman NHAs approval.
b.
Based on 2nd & 3rd EoTs granted to the Contractors

upto Jun- 2008 and Dec-2008 respectively and
finally 4th EoT up to Jul- 2011 (under process), the
agreement of M/s LRAG also has to be extended
(through Addendum-4R).
Justification of Addendum 4R.

a.
Initiated to cater for consultancy services upto

extended period ie from Apr-2009 to Apr 30, 2011
plus three months (May - Jul 2011) with reduced staff
for finalization of project accounts ie total 28
months. Thus effective agreement shall be from Aug
1, 2004 to Jul 31, 2011.
b.
Charge rates approved as per Addendum-3R will

apply up to Dec-2009 while enhanced charge rate
(50% of Addendum-3R) will be effective from Jan 1, 2010
and 5% escalation from Jan 1, 2011.
c.
Actual traveling expenses have been increased by

50% of approved Addendum-3R from Rs 20,000 to
Rs 30,000 per visit because of increase in air fare.
d.
Cost of communication expense and drafting

reproduction of reports has also been increased by
50% from original contract of 2004 viz from Rs
15,000 to Rs 22,500 and from Rs 3,000 to Rs 4,500
respectively.
e.
Rationalization of cost is aimed to counter inflation

and in view of law & order situation prevailing in
Turbat area and existing market salary structures of
supervision staff.
25
f.
9.9.
Comparison of charge rates of M/s LRAG on M-8

(signed in 2004), enhanced charges of approved
Addendum-3R (Oct-2006), M/s AA Associates of the
2009 and M/s LRAG for MCHP for 2009 justifies the
proposed enhancement in remuneration.
Overall Fiscal Summary/Variation.

a.
b.
c.
d.
e.
Cost
Original
Addendum-1 & 2
Addendum-3R
Revised (a+b+c)
Addendum-4R
Total (d+e)
Rupees
29,024,749
7,927,141
62,733,837
99,685,727
35,244,986
134,930,713
Variation
--+27.31%
+216.14%
+243.45%
+121.43%
+364.88%
9.10.
Recommendation. Following is recommended for M/s
LRAG for construction supervision of Gwadar - Turbat - Hoshab:a.
4th EoT ie from Apr-2009 upto Jul 31, 2011 (including

3 months with reduced staff for finalization of project account) .
b.
Charge rates will remain the same as per approved

Addendum-3R upto Dec 31, 2009. Enhanced charge
rates will apply from Jan 1, 2010 besides 5%
escalation effective Jan 1, 2011.
c.
Increase in actual travel expenses from Rs 20,000 to

Rs 30,000 per visit.
d.
Increase in cost of communication expense and

drafting reproduction of reports from Rs 15,000 to Rs
22,500 and from Rs 3,000 to Rs 4,500 respectively.
e.
Addendum-4R of M/s LRAG for Rs 35,244,986/=

(Rupees thirty five million, two hundred & forty four thousand,
only; bringing the revised

consultancy Cost to Rs 134,930,713/= (Rupees one
nine hundred & eighty six)
hundred & thirty four million, nine hundred & thirty thousand,
seven hundred & thirteen)
only; entailing overall cost
effect of +364.88%.
9.11.
The Member (Construction) presented details.

26
9.12.
The AS (Finance) observed that work on all the three
packages commenced in 2004 and is still ongoing. He enquired about
the reasons for this abnormal delay.
9.13.
The Member (Construction) explained that law & order
situation in the project area has remained precarious and the present
Contractors despite being of local origin are not prepared to work
because of killing of workers and persistent security threat.
9.14.
The Chief (T&C) remarked that while attending meetings
concerning review of the progress of Balochistan projects with high
level officials of Government of Balochistan, an impression is conveyed
in such a manner that security issue is not as such as it is portrayed.
9.15.
The Chairman responded that the position on ground is to
the contrary and overall security situation on many NHA projects in
Balochistan particularly on Gwadar - Turbat - Hoshab Section (M-8) is
alarming. He remarked that only few days back 10 workers on a road
project of the provincial government in Mastung area were killed.
9.16.
The Chairman recalled that as stated by him in his
opening remarks, the security situation on Gwadar - Turbat - Hoshab
Road (M-8) was discussed during the recent briefing for the Prime
Minister on mega projects of NHA and it was proposed that because of
inability on the part of local Contractors to work on this project due to
security threat, the responsibility for completion of balance works on
all the three packages may be entrusted to FWO.
9.17.
During the presentation, NHA also proposed creation of a
full wing of Frontier Constabulary dedicated for its projects, as even
FWO would face security threat. Moreover, FWO sublets work to civil
Contractors who would also require security coverage.
9.18.
The Prime Minister was pleased to accord approval, in
principle, for handing over Gwadar - Turbat - Hoshab Road (M-8) to
FWO once it remobilizes on N-85. The Prime Minister also approved
deployment of FC on this project for provision of security cover and
even expressed willingness to the deployment of Army troops so that
this long awaited project is completed at priority.
27
9.19.
The Secretary NHA added that besides security situation,
the scope of work of all packages has also enhanced substantially, as
mentioned in Para-9.4 above. Following works were added subsequent
to cyclones / flash floods of 2005 & 2007, which also destructed
various completed works:Section-I, Package-IIA (Gwadar - Dasht)
a.
b.
c.
d.
e.
Realignment in Talar gap.

Increase in quantity of rock cutting.
3 x additional bridges & increase in length of 9 bridges.
Overall increase in length of bridges 665 m to 1,790 m.
44 x additional culverts (new).
Section-I, Package-IIA (Dasht - Turbat)

a.
b.
c.
d.
e.
f.
g

43 x additional culverts.
4 x additional bridges.
Increase in length of Kech River Bridge by 870 m.
Realignment in Dehat and Jusak areas.
Overall increase in length of bridges 1,140 m to 2,435 m.
Section-IIA (Turbat - Hoshab)

a.
b.
c.
d.
125 x additional culverts.

11 x additional bridge.
Overall increase in length of bridges 2,120 m to 3,210 m.
9.20.
The JS (MoC) observed that addendum for Supervision
Consultants seeks EoT from Apr-2009 upto Jul 31, 2011; which
implies that another addendum will soon be processed.
9.21.
The Member (Construction) clarified that subsequent to
stoppage of work by Contractors, the Consultants were demobilized
barring very essential staff. A fresh addendum will be processed for
additional man-months as & when work on the project resumes.
28
9.22.
Matter was discussed and cleared, however, it was desired
that detail of reduced man-months because of demobilization of the
Consultants staff and the saving so affected be added to the minutes
of the Board meeting and the cost of Addendum-4R rationalized and
sanctioned accordingly.
9.23.
The Chief (T&C) further desired early processing of the
revised PC-I of M-8 project because of major revision in scope of work
and as work on Hoshab-Awaran-Khuzdar (410 km) has been pended.
9.24.
Note. The Construction Wing has provided rationalized
status / cost of the Addendum in question as per details at Annex-E.
Decision
9.25.
The Executive Board approved Addendum 4R of M/s LRA
Group for construction supervision of Gwadar - Turbat - Hoshab Road
(M-8) costing Rs 35,244,986/= (Rupees thirty five million, two hundred & forty
four thousand, nine hundred & eighty six) only; bringing the revised
consultancy Cost to Rs 134,930,713/= (Rupees one hundred & thirty four
million, nine hundred & thirty thousand, seven hundred & thirteen) only;
entailing overall cost effect of +364.88%.
9.26.
Action By
The above also entails approval of the following:a.
4th EoT ie from Apr-2009 upto Jul 31, 2011 (including

3 months with reduced staff for finalization of project account) .
b.
Charge rates will remain the same as per approved

Addendum-3R upto Dec 31, 2009. Enhanced charge
rates will apply from Jan 1, 2010 besides 5%
escalation effective Jan 1, 2011.
c.
Increase in actual travel expenses from Rs 20,000 to

Rs 30,000 per visit.
d.
Increase in cost of communication expense and

drafting reproduction of reports from Rs 15,000 to Rs
22,500 and from Rs 3,000 to Rs 4,500 respectively.
Member (Construction)
29
10.
Agenda Item 7
Addendum 1 for Construction Supervision of GwadarRatodero - Khuzdar - Shahdadkot: Section-IV (Pack-V)
Km 125+666 to 183+251 (M-8)

10.1.
Introduction (M-8).
a.
The 892 km long M-8 project is an important link

being developed with the long-term aim of connecting
Gwadar Port via RCD Highway (N-25), Indus Highway
(N-55) and National Highways (N-85 & N-30) for
providing connectivity to Afghanistan, CARs & China.
b.
M-8 project, when completed, will open inaccessible

& remote areas to the mainstream economic activity
& boost socio-economic conditions in Balochistan.
c.
M-8 has been divided into three major segments:-
i.
ii.
iii.
d.
Segment
Gwadar - Turbat - Hoshab
Hoshab - Awaran - Khuzdar
Khuzdar - Shahdadkot - Ratodero
Total
Km
240
410
242
892
NHA has undertaken construction of the first and

last segments. However, construction of the middle
part (Hoshab - Awaran - Khuzdar) has been shelved due
to huge cost and time factor and accord of priority to
N-85 and N-30.
10.2.
Khuzdar-Ratodero. Construction of this segment is on for
the past few years in packages. Following packages are in hand. This
working paper deals only with Pack-V.:Pack
III.
IV.
V.
Km
49.50
42.45
57.58
Contractor
(M/s)
AMCC-NAZIR (JV)
SMAD Baloch
FWO
Start
Oct-2004
Apr-2004
May-2006
Approved Cost
(Rs in M)
1908.31
2207.27
1929.47
30
10.3.
Supervision.
This
task was assigned to M/s ACC

(Associated Consultancy Centre Pvt Ltd) in Jul-2006 for Rs 3,874,750/- with
Jun-2009 as the completion date.
10.4.
Contractors EoT. The Engineer recommended EoT to
the Contractor for completion of the project upto Mar 31, 2012 in view
of the following:-
10.5.
10.6.
a.
Delay in payments/cash flow.
b.
Delay in finalization of bridge locations & flood

review design.
c.
Heavy floods in Aug-2010.
d.
Changes in road alignment and increase in scope.
e.
Stoppage of work by landlords/locals.
Description of Addendum 1.
a.
Addendum 1 seeks EoT for the Consultants from Jul

1, 2009 up to Jun 30, 2012.
b.
Annual escalation on charge rates applied as per

Clause 6.2 (a) Special Conditions of Contract.
Fiscal Summary.
a.
b.
e.
Cost
Original contract
Addendum 1
Net revised (a+b)
Rupees
23,874,750
29,121,106
52,995,856
Variation
--+121.97%
+121.97%
10.7.
Recommendation. Approval of Addendum-1 of M/s ACC
costing Rs 29,121,106/= for supervision of Khuzdar - Shahdadkot,
Sec-IV, Pack-V, km 125 + 666 to km 183 + 251 (M-8) entailing EoT
from Jul 1, 2009 to Jun 30, 2012.
10.8.

31
10.9.
The VP-NESPAK noted that EoT has been sought wef Jul
1, 2009 and enquired why the case has been processed so late.
10.10.
The JS (MoC) added that EoT has been sought upto Jun
30, 2012; which implies that another addendum will soon be
processed, as work on all the three packages is ongoing.
10.11.
The Member (Construction) clarified that processing of the
addendum got delayed because of uncertain status of the project due
to law & order situation and paucity of funds and stoppage of work by
Contractors. The Consultants were allowed provisional payments
under the rules and demobilized barring very essential staff. A fresh
addendum will be processed for additional man-months from Jul 1,
2012 onwards. He rendered an assurance that in future addendums
or VOs will be processed in a timely manner.
10.12.
The Chairman remarked that NHAs portfolio has
increased beyond the Authoritys capacity during the past few years
and the yearly resource envelop is not proportionate to works in hand.
Consequently, many projects suffered because of inadequate financial
resources and delay in payments to the Contractors. The Khuzdar Ratodero Section of M-8 also suffered badly.
10.13.
The Chairman added that he has resisted assignment of a
number of new projects to NHA without provision of adequate funding
including Jheruk - Mullah Katiar Bridge across River Indus, Syedwala
Bridge across River Ravi, seven major road projects in Azad Jammu &
Kashmir, etc. NHA also needs to hand back projects that do not fulfill
the definition of national highways to provincial governments.
10.14.
The AS (Finance) endorsed this statement and remarked
that the Executive Board should help NHA in resisting assignment of
projects which do not fulfill the definition of national highways as
dedication of energy & resources on provincial / local roads distracts
NHA from according attention to key national arteries.
10.15.
Matter was discussed and cleared, however, it was desired
that detail of reduced man-months because of demobilization of the
Consultants staff and the saving so affected be added to the minutes
of meeting and the cost of Addendum 1 rationalized accordingly.
32
10.16.
The Addendum 3 of M/s ACC for Pack-IV & Addendum 4
for Pack-III of Khuzdar-Shahdadkot-Ratodero Section (M-8) ie Agenda
Items 8 & 9 respectively were also cleared with similar remarks.
10.17.
status / cost of the Addendum in question as per details at Annex-F.
Cost has been rationalized from Rs 29,121,106/= to Rs 16,641,118/=.
Decision
10.18.
The Executive Board approved following variations in the
consultancy agreement of M/s Associated Consultancy Centre for
construction supervision of Khuzdar - Shahdadkot, Sec-IV, Pack-V,
km 125+666 to km 183+251 (M-8):-
Action By
11.
a.
Addendum 1 costing Rs 16,641,118/= & revised cost

of Rs 40,515,868/=.
b.
Extension of time from Jul 1, 2009 to Jun 30, 2012.
Agenda Item 8
Addendum 3 for Construction Supervision of GwadarRatodero - Khuzdar - Shahdadkot: Section-IV (PackIV) Km 84+500 to Km 125+666 (M-8)

11.1.
Introduction (M-8).
a.

(N-55) and National Highways (N-85 & N-30) for
b.

& remote areas to the mainstream economic activity
& boost socio-economic conditions in Balochistan.
33
c.
i.
ii.
iii.
d.
Segment
Khuzdar-Shahdadkot- Ratodero
Total
Km
240
410
242
892

part (Hoshab- Awaran - Khuzdar) has been shelved due to
huge cost and time factor and accord of priority to N85 and N-30.
11.2.
the past few years in packages. Work on three packages is in hand.
This working paper deals only with Pack-IV:Pack
III.
IV.
V.
Km
49.50
42.45
57.58
Contractor
(M/s)
AMCC-NAZIR (JV)
SMAD Baloch
FWO
Start
Oct-2004
Apr-2004
May-2006
Approved Cost
(Rs in M)
1908.31
2207.27
1929.47
11.3.
Supervision. This task for Pack-IV was assigned to M/s
ACC (Associated Consultancy Center Pvt Ltd) in Mar-2004 for Rs
9,624,407/- million with Feb-2006 as completion date.
11.4.
Addendums to Construction Supervision Agreement.

a.
Addendum 1. Approved to cover enhancement in

consultancy services due to inclusion of five posts of
support staff at NHA Khuzdar Office.
b.
Addendum 2. Approved to cover consultancy services

upto Dec 31, 2008.
c.
Addendum 3. Initiated to cater for consultancy

services from Jan 1, 2009 up to Mar 31, 2012.
34
11.5.
11.6.
11.7.
Contractors EoT.
a.
NHA approved EoT for the Contractor up to Oct 30,

2011 because of enhanced scope of work, slow
progress at site due to worst law & order in Khuzdar
area and delays in payments to the Contractor.
b.
Gradient provided in original drawing was upto 12%.

Later, it was improved to 7% being a motorway and
this resulted in change of alignment and increase in
length by 7.166 km ie from 33 to 41.166 km.
Therefore, the scope of work was revised / increased
to match site conditions.
a.
There is no change in the status of staff approved as

per Addendum 2.
b.

Clause 6.2 (a) Special Conditions of the Contract.
Fiscal Summary.
a.
b.
c.
d.
e.
Cost
Original contract
Addendum 1
Addendum 2
Addendum 3
Net revised (a to d)
Rupees
9,624,407
709,200
22,866,066
37,352,530
70,552,203
Variation *
--+7.36%
+237.58%
+388.10%
+633.04%
Note. * Variation vis--vis original cost.
11.8.
Recommendation. Approval of Addendum 3 of M/s ACC
costing Rs 37,352,530/- for construction supervision of KhuzdarShahdadkot, Section-IV, Pack-IV, km 84+500 to km 125+ 666 (M-8)
including EoT from Jan 1, 2009 to Mar 31, 2012.
11.9.
35
11.10.
The Members deliberated and cleared this item with
directions similar to that recorded for Pack-V in Para 10.15 above.
11.11.
status / cost of the Addendum in question as per details at Annex-G.
Decision
11.12.
consultancy agreement of M/s Associated Consultancy Centre (ACC)
for construction supervision of Khuzdar - Shahdadkot, Section-IV,
Pack-IV, km 84+500 to km 125+666 (M-8):-
Action By
12.
a.
Addendum 3 costing Rs 36,929,601/= and revised

agreement cost of Rs 70,129,274/=.
b.
Extension of time from Jan 1, 2009 to Mar 31, 2012.
Agenda Item 9
Addendum 4 for Construction Supervision of Gwadar
- Ratodero-Khuzdar-Shahdadkot: Section-IV (Pack-III)
Km 35+000 to Km 84+500 (M-8)

12.1.
Introduction (M-8).
a.

(N-55) & National Highways (N-85 & N-30) for
b.

and remote areas to the mainstream economic
activity & socio-economic conditions in Balochistan.
36
c.
i.
ii.
iii.
d.
Segment
Khuzdar - Shahdadkot - Ratodero
Total
Km
240
410
242
892

part (Hoshab- Awaran - Khuzdar) has been shelved due to
huge cost and time factor and accord of priority to N85 and N-30.
12.2.
the past few years in packages. Work on three packages is in hand.
This working paper deals only with Pack-III:Pack
III.
IV.
V.
Km
49.50
42.45
57.58
Contractor
(M/s)
AMCC-NAZIR (JV)
SMAD Baloch
FWO
Start
Oct-2004
Apr-2004
May-2006
Approved Cost (Rs

in M)
1908.31
2207.27
1929.47
12.3.
Supervision. This task for Pack-III was assigned to M/s
ACC (Associated Consultancy Centre) in Oct-2004 for Rs 13,909,000/- with
Sep-2006 as the completion date.
12.4.
Addendums to Construction Supervision Agreement.

a.
Addendum 1. Approved to cover increase in

consultancy services due to inclusion of five posts of
support staff at NHA Khuzdar Office.
b.
Addendum 2. Approved to allow consultancy services

from Oct-2006 to Oct 31, 2007 as per approved
extended construction period.
c.
Addendum 3. Approved to allow consultancy services

from Nov-2007 to Dec 31, 2008 as per approved
extended construction period.
37
12.5.
Contractors EoT. The Engineer recommended EoT to
the Contractor up to Jan-2013, vide letter dated Dec 26, 2011 based
on increase in quantities subsequent to remedial measures taken due
to flood damages of Jun-2007.
12.6.
12.7.
12.8.
Remedial Measures.
a.
24 box culverts, rising of profile in 13.390 km and

provision of stone masonry wall with mortar.
b.
Flood damages cost is covered under Clause 20.5 of

CoC Part-II as decided by the Engineer under
Clause 67.1.
a.
Initiated to cater for extended consultancy services

from Jan 1, 2009 to Feb 28, 2013.
b.
Staff will be as per approved Addendum-3 with no

change in the status of deployed posts. However,
considering slow progress of work at site, some staff
members have been demobilized.
c.

Clause 6.2 (a) Special Conditions of Contract.
Fiscal Summary.
a.
b.
c.
d.
e.
f.
Description
Original contract
Addendum 1
Addendum 2
Addendum 3
Addendum 4
Net revised (a to e)
Rupees
13,909,000
516,600
5,368,957
7,653,750
43,318,098
70,766,405
Variation
--+3.71%
+38.60%
+55.02%
+311.43%
+408.76%
12.9.
EoT. Due to slow progress of work by the Contractor
including suspension of work for 16 months, flood damages during
Aug-2007, restoration work due to floods, increased scope of work and
poor law & order in the project area, the consultancy services need to
be extended up to Feb 28, 2013. Two additional months kept for key
staff for final completion of the project.
38
12.10.
Recommendation. Approval of Addendum 4 of M/s ACC
costing Rs 43,318,098/- for construction supervision of KhuzdarShahdadkot, Section-IV, Pack-III, km 35+000 to km 84+500 (M-8)
including EoT from Jan 1, 2009 to Feb 28, 2013.
12.11.
12.12.
The Members deliberated and cleared this item with
directions similar to that recorded for Pack-V in Para 10.15 above.
12.13.
status / cost of the Addendum in question as per details at Annex-H.
Decision
12.14.
consultancy agreement of M/s Associated Consultancy Centre (ACC)
for construction supervision of Khuzdar - Shahdadkot, Section-IV,
Pack-III, km 35+000 to km 84+500 (M-8):-
Action By
13.
a.
Addendum 4 costing Rs 35,759,444/= and revised

contract cost of Rs 63,207,751/=.
b.
Extension of time from Jan 1, 2009 to Feb 28, 2013.
Agenda Item 10
Upgradation of Accounts / Audit / Budget Posts of
Assistant Director & Below in NHA wef May 12, 2005

13.1.
On the petition of employees of Controller General of
Accounts, the Supreme Court of Pakistan (SCP) decided upgradation
of the employees of Audit & Accounts Cadre and Finance Division
notified these orders wef Apr 3, 2010. Different autonomous bodies
also upgraded the posts of Audit & Accounts on the same lines.
39
13.2.
The NHA Audit & Accounts employees approached the
Federal Service Tribunal for upgradation of their posts and, on the
directive of FST, the case was placed before and approved by NHA
Executive Board (209th meeting of Nov 3, 2011).
13.3.
The upgradation was notified by NHA Admin Wing on Dec
28, 2011 with effective date as Nov 3, 2011 ie the date of the Boards
approval. Later, on the pray of the employees of the Controller General
of Accounts, the SCP decided upgradation wef Sep 12, 2005 and this
decision was notified by the Finance Division on Aug 24, 2011 and by
the Auditor General of Pakistan on Oct 12, 2011.
13.4.
In pursuance of the SCPs order, various organization like
Pakistan Railways and Capital Development Authority have upgraded
the Audit & Accounts Cadre posts wef Sep 12, 2005.
13.5.
The officers/officials of the NHA Finance Wing have
requested that they may also be allowed payment of arrears of pay &
allowances wef Sep 12, 2005 due to upgradation as were allowed to all
deputationists holding NHA Audit & Accounts posts vide NHA Finance
Wings Circular dated Apr 17, 2012.
13.6.
The Executive Board is requested to approve upgradation
of NHA Finance Wing employees in question also wef from Sep 12,
2005 in pursuance of the SCP decision. Financial effect is Rs 68
million.
13.7.
The Member (Finance) presented the details.
13.8.
On an observation by the AS (Finance), it was submitted
that all the departments mentioned in Para-13.4 above have upgraded
their Audit & Accounts Cadre posts wef Sep 12, 2005 based on
Finance Divisions OM No F.9(9)R-1/2008 of Aug 24, 2011. This OM
was not attached with the working paper but a copy is now available
at Annex-J. It reads as follows:-
40
The undersigned is directed to refer to this Division's

earlier OM of even number dated Apr 3, 2010, on the above
subject, and to state that in compliance of the Federal
Services Tribuna1, Islamabad (full bench)'s judgment dated
Apr 16, 2011 passed in Appeals bearing No 1620, 1621,
1623 to 1632 and l806 to 1811(R)CS/2010, the Finance
Division conveys approval for upgradation of following
posts along with incumbents under Controller General of
Accounts Organization wef Sep 12, 2005 instead of Apr 3,
2010 with back benefits.
13.9.
The Members wanted to know the exact wording of the
SCPs decision referred to above. This decision was also not attached
with the working paper but a copy is now available at Annex-K. The
relevant part is given below:Thus, for the foregoing reasons, petitions are
dismissed with the directions to the Finance Secretary,
Government of Pakistan, the Controller General of Accounts
in Islamabad as well as the Accountant General, Punjab to
implement and dispose of the cases of the respondents
strictly keeping in view the observations made in the
judgment dated Dec 5, 2008 within the period of fifteen
days from the date of receipt of this order.
13.10.
The relevant part of FSTs judgment dated Apr 4, 2011
(Annex-L) referred to above is also given below:We are of the view that the discrimination of the
appellants is still not removed as orders of the respondents
dated Apr 3, 2010 made the applicants junior to their
counterparts Provincial Government employees instead of
making them senior. Article-25 of the constitution of Islamic
Republic of Pakistan clearly provides equal treatment of
law to all. Moreover, the Respondent No 3 Accountant
General of Punjab had already submitted no objection if the
posts of the appellants are upgraded in a manner that they
become senior to their immediate junior performing
identical duties at the same or similar offices.
41
Furthermore, the judgment of this Tribunal dated Dec

5, 2008 was a direction to the respondents to upgrade the
said post in the light of recommendations of Respondent No
2 and 3 ie Controller General of Accounts and Accountant
General Punjab respectively. The order of the respondents
dated Apr 3, 2010 are not in accordance with the
recommendations of the Respondent No3 as they are
discriminatory and do not fully remove the grievances of
the appellant and are against the spirit of this Tribunal
orders dated Dec 5, 2008 and in violation of the Article 25
of the Constitution of Islamic Republic of Pakistan which
clearly provide equal treatment of law to all. Furthermore,
the Respondent No 3 ie Accountant General of Punjab has
already submitted no objection if the posts of appellants
are upgraded in a manner that they become seniors to their
immediate juniors.
Keeping in view the above circumstances, we accept
the appeal and direct the respondents to modify their
orders dated Apr 3, 2010 and upgrade the posts of the
appellants wef Sep 12, 2005, the date on which the
provincial government has upgraded the posts. The
appellants are entitled to all the back benefits. With this
direction, the appeals are disposed of accordingly.
13.11.
Matter was discussed and the Member (Finance) NHA was
authorized to notify necessary instructions for implementation of the
Boards original decision referred to in Para-13.2 above wef Sep 12,
2005 with back benefits after consulting exact wording of the SCPs
judgment and instructions issued by the Finance Division.
Decision
13.12.
The Executive Board considered the proposal regarding
upgradation of accounts/audit/budget posts of Assistant Director &
below in NHA with back benefits and authorized the Member (Finance)
NHA to notify necessary instructions applicable wef Sep 12, 2005 after
consulting exact wording of the SCPs judgment and instructions
issued by the Finance Division.
Action By
Member (Finance)
42
14.
Agenda Item 11
Handing Over of Old City / Town Portion Routes to
Provincial Governments

14.1.
The subject issue primarily concerns National Highway
(N-5) as, during phased dualization of this premier artery, NHA also
constructed many bypasses for various cities/towns for smooth flow of
through traffic while also reducing congestion in urban areas. In case
of some other highways also, NHA has constructed bypasses for
different cities / towns.
14.2.
The question whether or not NHA should continue to
maintain the urban stretch was, however, not formally addressed for
taking a uniform policy decision. In some cities, eg Gujranwala, the
urban stretch is being maintained by the local administration. On the
contrary, NHA has incurred billions of rupees in maintaining N-5
traversing Rawalpindi city and cantonment limits.
14.3.
Experience reveals that NHA faces following challenges in
maintaining its RoW through major cities/town:a.
Prime issue is removal of encroachments for which

NHA is dependent totally on local authorities /
administration. Moreover, NHA functionaries are
helpless before the influential owners of precious
commercial properties located along the RoW.
b.
The local / tehsil / district / cantonment authorities

want complete domination as far as RoW
management is concerned and NHA is not allowed to
collect revenue from urban areas. However, they
insist upon NHA to maintain the roads to ease
burden on their own resources and for shifting
blame for a poor condition road segment on NHA.
14.4.
The C&W Deptt, Punjab on Aug 22, 2011 conveyed, interalia, the following instructions to local administrations:-
43
a.
NHA approached Punjab Government to take over

road stretches passing through congested urban /
city areas for necessary repair / maintenance, etc,
since under the Devolution Plan-2001, responsibility
for maintenance of all urban roads falls under the
jurisdiction of respective District Governments.
Therefore, this department vide order dated Mar 7,
2002 transferred 20 stretches of N-5 to respective
district governments for repair / maintenance.
b.
Condition of most of these road stretches is now

deplorable for want of regular repair / maintenance,
causing inconvenience to the residents of these
urban centers. The Secretary MoC (GoP) requested
the Chief Secretary, Punjab to direct the concerned
district governments for carrying out regular repair /
maintenance
of
these
stretches
for
public
convenience.
c.
Necessary action be taken for carrying out regular

repair / maintenance of these roads stretches on
alignment of N-5, which are passing through urban
areas of various cities / towns.
14.5.
The above signify that the responsibility for repair /
maintenance of national highways traversing urban areas of cities /
towns for which NHA is separately maintaining bypasses rests with
district governments concerned.
14.6.
It is proposed that NHA may as a matter of policy
handover all road sections on any route passing through urban limits
of cities / towns where NHA has constructed bypasses to the local
authorities / administration not only in Punjab but in all provinces.
The decision may also apply to road sections passing through
cantonment limits where NHA has provided bypasses. The Executive
Board is requested to approve.
14.7.
The Member (Operation) presented the details.
44
14.8.
The Member (Planning) NHA observed that the roads are
federalized under the provisions of NHA Act 1991 (amended 2001) after
approval by the Federal Cabinet. There is no provision in the Act for
de-notification of federalized roads. Even otherwise, national highways
are an asset worth trillions of rupees in NHAs balance sheet and this
precious asset would be of immense importance for any future
commercialization or defraying NHAs CDL (Cash Deposit Loan) liability.
14.9.
The Chairman remarked that the observations are valid
but in case of Punjab, the provincial government is either not
mutating the ownership of national highways including N-5 in NHAs
name or has cancelled the mutations previously approved. Legal
opinion could be sought, if necessary.
14.10.
The Chief (NTRC) observed that the procedure identical to
federalization of a road would be required to be followed.
14.11.
The Chief (T&C) recalled that in 2010 transfer of physical
possession of Karachi - Thatta - Hyderabad Section to the Govt of
Sindh (GoS) was recommended by the Board to National Highway
Council subject to the condition that the road will not be defederalized but only NOC will be granted to GoS for development &
dualization on PPP / BOT basis and that the road will return to NHA
on completion of the concession period. This example could be
followed in the instant case also.
14.12.
Matter was discussed and it was decided to recommend
the proposal to NHC for consideration with stipulation that stretches
passing through urban areas will be handed over to the provincial
government but the ownership will rest with NHA.
Decision
14.13.
The Executive Board recommended the proposal seeking
handing over of old city / town portion routes of national highways
traversing urban areas for which NHA has constructed bypasses to
the provincial governments concerned for operation & maintenance for
consideration by the National Highway Council but with stipulation
that ownership of such stretches will rest with NHA.
14.14.
Legal advice may be solicited before submission of the
matter to NHC.
Action By
Member (Operation)
45
15.
Agenda Item 12
Upgradation Of Water Supply Scheme Rawat By Local
Government & Rural Development Department, ICT:
Request for Permission to Cross GT Road (N-5)
Without Payment of NHA Charges

15.1.
The Local Government & Rural Development Department,
Islamabad Capital Territory (ICT) vide letter dated May 23, 2012 has
sought permission to cross GT Road (N-5) for lying of Water Supply
Line to upgrade the existing Water Supply Scheme for Village Rawat.
15.2.
As per existing SOPs on the subject, all such permissions
are granted on payment of prescribed NOC fees and approach road
rental charges. However, the work being a public cause, the ICT has
requested for waiver of the charges by NHA.
15.3.
It is proposed to accede to the request of the LG & RD
Deptt, ICT, Islamabad regarding waiver of NHA charges. The Executive
Board is requested to approve.
15.4.
The Member (Operation) presented the details.
15.5.
The JS (MoC) noted that the LG & RD Deptt in its letter
dated May 23, 2012 has not sought waiver of NHA charges but has
only requested that the charges may be minimized.
15.6.
The Member (Operation) clarified that the LG & RD Deptt
has verbally conveyed that there is no provision in their PC-I for
payment of NHA charges; which may be waived off as a special case.
He also added that the water supply line will cross N-5 through thrust
boring and no damage to the road will be caused.
15.7.
Matter was discussed and cleared.
46
Decision
15.8.
The Executive Board approved waiver of NHA charges for
grant of permission to the Local Government & Rural Development
Department, Islamabad Capital Territory for crossing of GT Road (N-5)
by Water Supply Scheme Rawat. However, this is subject to the
condition that this department will provide an indemnity bond to NHA
that if the road settles down during the crossing of water supply line,
the entire cost of rectification of the road will be borne by them.
Action By
16.
Member (Operation)
Agenda Item 13
Enhancement of Conveyance Charges on Late Sitting
for Chowkidars of NHA

16.1.
The NHA Chowkidars (124) have pleaded for enhancement
in conveyance charges on late sitting and for performing duty after
office hours and on weekends and gazetted holidays.
16.2.
Following facts deserve consideration:a.
Chowkidars are being paid late sitting conveyance

charges @ Rs 30 per day with maximum limit of Rs
900 per month in the light of approval of National
Highway Council (20th meeting of Jul 13, 2007).
b.
NHA Drivers are provided late sitting charges as well

as pick & drop facility, however, the Chowkidars are
not provided pick & drop service and have to travel to
office and back at own cost & arrangement. .
c.
Chowkidars are not provided double late sitting

charges for holidays as is the norm in other
organizations.
d.
Most of them come from adjoining towns/villages viz

Kallar Sayidan, Taxila, Gujjar Khan, etc. In case of
weekly/official holidays, they have to come to office
after paying double transport fares.
47
e.
Chowkidars deserve to be compensated keeping in

view their genuine grievance and sufferings in the
wake of unabated inflation and ever increasing cost
of living and also for enhancement of efficiency and
activeness.
16.3.
The Executive Board is requested to approve conveyance
charges on late sitting allowed to NHA Chowkidars from Rs 30 per day
(maximum Rs 900 pm) to Rs 90 per day (maximum Rs 2700 pm).
16.4.
The Member (Admin) presented details.
16.5.
Decision
16.6.
The Executive Board approved the enhancement of
conveyance charges on late sitting allowed to NHA Chowkidars from
Rs 30 per day (maximum Rs 900 pm) to Rs 90 per day (maximum Rs
2700 pm).
Action By
17.
Member (Admin)
Agenda Item 14
Policy for Disposal of Condemned / Unserviceable
Vehicles

17.1.
A Condemnation Board comprising following officers
physically checks NHA vehicles (proposed for disposal/auction either at Head,
Regional or any Project Offices) to identify those which have outlived their
utility and need to be disposed of being unfit for further use because
of their condition or being beyond economical repairs:a.
b.
c.
d.
GM (Audit)
Director (B & A)
Director (Admin)
Dy Director (Gen Admn)
:
:
:
:
Chairman
Member
Member
Member/Secretary
Note. In case of Regional/Project Offices, the In-Charge Transport acts

as the Co-opted Member.
48
17.2.
Instructions regarding condemnation/disposal of vehicles
are contained in Chapter-6 (Regulations for Motor Vehicles Use) Paras 6.1 &
6.2 of NHAs Admin Manual. This manual, however, do not describe
minimum mileage of life of vehicles for condemnation/disposal.
17.3.
NHA Executive Board (198th meeting of Nov 5, 2010) directed:NHA (Admin Wing) will prepare a well considered
policy for disposal of unserviceable/condemned vehicles
based on the year of manufacture (model), mileage &
overall condition and place the same for approval before
the Board.
17.4.
A working paper was, accordingly, placed before the
Board (204th of May 14, 2011); which decided that a fresh working paper
be prepared in the light of various observations made by the Members.
17.5.
It is proposed that Para 6.1, Chapter-6 of the Admin
Manual may be modified to incorporate following conditions as per
Staff Car Rules-1980 (updated Oct-2008) issued by Cabinet Division:6.1. In order to have control over aging fleet of vehicles, a
periodic review shall be carried out. The aim of the
exercise will be to select vehicles that have outlived
their utility and need to be disposed off being unfit
for further use because of their condition or being
beyond economical repair. However, no vehicle will be
replaced before completion of the prescribed life fixed
on the basis of mileage/number of years used which
ever is earlier and subject to over all condition of the
vehicle:Vehicle Description
Engine
Capacity (cc)
---
Years
Lac Km
1.0
a.
Motorcycle
b.
Car/Van
Upto 1000
1.6
c.
Car
Upto 1300
2.0
d.
Car
Upto 1600
2.5
e.
Car/Jeep
1600 & above
3.0
f.
Single/Double Cabin Pickup
1600 & above
3.0
g.
Station Wagon / Van
1600 & above
3.0
h.
Mini Bus/ Coaster
---
5.0
i.
Truck/Bus
---
5.0
49
17.6.
If a vehicle is required to be replaced before reaching the
fixed life (due to any technical reason or accident) the case will be submitted
to the Executive Board with full justification for prior approval.
17.7.
The composition of Condemnation Board mentioned above
is also proposed to be revised as follows to minimize expenditure on
TA/DA of visiting officers & quick disposal of condemned/unserviceable vehicles:Head Office
a.
Regional/Project Offices
GM (IA)
or
GM (B&A)
Designation
Head/Chairman
b.
Dir (Admn)
Dir / DD(Admn) (Concerned)
Member
c.
Dir (B&A)
Dir /DD (Accounts) (Concerned)
Member
d.
DD (Admn)
DD (Gen Admn) (Concerned)
Member / Secy
17.8.
The Executive Board is requested to approve the above
proposals. Thereafter, the relevant contents of Part-4 (Motor Vehicle Use),
Chapter 6 (Condemnation, Disposal & Replacement) of the NHA Admin
Manual-2002, which was also approved by the Board (104th meeting of
May 29, 2002), would be amended accordingly.
17.9.
The Member (Admin) presented details.
17.10.
Matter was discussed and cleared with directions that the
condemned / unserviceable vehicles will be disposed off through open
competition.
Decision
17.11.
The Executive Board reviewed the policy for disposal of
condemned / unserviceable vehicles in NHA and approved the
proposals in Paras 17.5 to 17.8 above.
Action By
Member (Admin)
50
Additional Agenda Item I

Addendum-3 of M/s EA Consulting (Pvt) Ltd
Construction
Supervision
Consultants
for
Improvement of Inner City Ring Road Project, Multan
18.

18.1.
Introduction. Improvement of Inner City Ring Road (ICRR)
Project, Multan comprises 4 x packages. Packs-1, 2 & 3 envisaged
construction of flyovers at six locations & Pack-4 improvement /
upgradation of road sections in between the flyovers.
18.2.
Construction Packages for Flyovers.
Pack Flyovers
I.
Jinnah Chowk &

Rasheedabad
Chowk
Contractor
(M/s)
RMC
Rs in M
Start
1,458.51
Feb-2010
Completion
Jinnah Chowk (Level-1)
Apr-2011 (SC)
Jinnah Chowk (Level-II) &
Rasheedabad Chowk to be
completed by Sep-2012.
II.
Chungi No 8 & 9
Maqbool
Associates
1209.74
Feb-2010
Oct-2011 (SC)
III.
Kalma Chowk &

Double Phatak
Chowk
SARCO Mishal (JV)
1596.07
Mar-2010
Dec-2011 (SC)
18.3.
Construction Supervision.
a.
Consultancy supervision for of ICRR Project was

awarded to M/s EA Consulting (Pvt) Ltd, Karachi,
with the approval of NHA Executive Board (182nd
meeting of Dec 7, 2009). Time period for completion of
the assignment starting from Feb 25, 2010 was 9
months ie upto Nov-2010.
b.
Addendum-1 Rs 5,541,600/= was signed on Oct 6,

2010 granting 4 months EoT.
c.
Addendum-2 of Rs 15,385,743/= was signed on Sep

19, 2011 granting further 4 months EoT.
51
d.
Addendum-3 viz 488 days EoT upto Oct 31, 2012 is

required because of the requirement of construction
contracts for the three packages in question:Pack
I.
II.
III.
18.4.
Remarks
Approved
Approved
Approved
Overall Fiscal Summary/Variation.
a.
b.
c.
d.
e.
f.
18.5.
EoT
Sep 30, 2012
Sep 30, 2011
Dec 31, 2011
Cost
Original
Addendum-1
Addendum-2
Revised (a + b + c)
Addendum-3
Total (d + e)
Rupees
86,249,000
5,541,600
15,385,743
107,176,343
33,940,180
141,116,523
Variation
--
+6.425%
+17.84%
+24.27%
+39.35%
+63.62%
Proposal. The Executive Board is requested to approve:a.
Addendum-3 of M/s EA Consulting (Pvt) Ltd for

construction supervision of the project Improvement
of ICRR, Multan costing Rs 33,940,180/=.
b.
Revised agreement cost would be Rs 141,120,523/=

with and +63.62% overall increase and EoT of 488
days from Jul 1, 2011 upto Oct 31, 2012.
18.6.
Capping of Cost. The Board while approving hiring of the
services of M/s EA Consulting decided that it would be subject to the
condition that the overall cost involved will be capped at the given
figure of Rs 86.249 million.
18.7.
Clarification. The Construction Wing has clarified that
while approving Addendums 1 & 2, which were within the competency
of Chairman NHA, and necessitated by prevailing site conditions, the
Boards above direction was overlooked. They have regretted the error
explaining that consultancy agreements are co-related with
construction contracts and the phenomena of complex time based
assignments needs to be kept in perspective.
52
18.8.
18.9.
The Chief (T&C) remarked that the ICRR is a high priority
complex project for Multan urban area and the consent of NHA to cap
the remuneration was an error, as no such consultancy agreement
can be operated having the cost capped at a certain ceiling because
the time period for supervision depends upon the pace of progress
achieved by the construction contractors. As such, the Boards earlier
decision needs to be reviewed, before the instant proposal is
considered.
18.10.
18.11.
The VP-NESPAK also endorsed his statement.

Decision
18.12.
The Executive Board approved Addendum-3 of M/s EA
Consulting (Pvt) Ltd for construction supervision of the project
Improvement of Inner City Ring Road, Multan costing Rs
33,940,180/- (Rupees thirty three million, nine hundred & forty thousand, one
hundred & eighty) only. Revised agreement cost would be Rs
141,120,523 with and +63.62% overall increase and EoT of 488 days
from Jul 1, 2011 upto Oct 31, 2012.
18.13.
The Board also reviewed its earlier decision to cap the cost
for hiring of the services of M/s EA Consulting at the figure of Rs
86.249 million and regularized Addendums 1 & 2 already approved by
the Chairman NHA.
Action By
19.
Additional Agenda Item II
Appointment of Auditors for Audit of NHA Accounts

19.1.
Background
a.
Audit of following accounts of NHA is conducted on

yearly basis by a Chartered Accountants firm:
i.
NHA Entity Accounts.
53
ii.
iii.
iv.
Road Maintenance Accounts.

ADB Funded Projects Accounts.
NHIP Accounts.
b.
Audit of accounts for the year ended Jun 2011 for

second term was done by M/s HLB Ijaz Tabassum.
c.
The NHA Executive Board (217th meeting of June 4, 2012)

decided to appoint new Auditors through competitive
process among the auditors listed in Category A of
the State Bank of Pakistan (SBP).
19.2.
Hiring Process. Letter of invitation was issued to fourteen
(14) Category A Chartered Accountants firms listed on the panel of
SBP. Seven (07) firms expressed interest.
19.3.
Technical Evaluation. The evaluation committee shortlisted all the seven (07) firms as technically qualified which met the
approved criteria and invited them to submit financial proposal.
19.4.
Financial Evaluation. Financial bids of technically
qualified firms were opened / announced in the presence of evaluation
committee and representatives from each firm.
19.5.
Financial Proposals. Financial proposals were opened,
however, one (01) firm was declared as non-responsive since it did not
quote the out-of-pocket expenses in terms of rupees or percentage:Rupees in Million
Firms Names
Audit
Fee
Out of Pocket
Expenses
Total
a.
Ilyas Saeed & Co
3.910
3.910
b.
Horwath Hussain Ch & Co
3.910
0.195
4.105
c.
Munif Ziauddin & Co
3.910
3.910
d.
Hyder Bhimji
4.300
0.645
4.945
e.
M Yusuf Adil Saleem & Co
3.910
0.782
4.692
f.
Avais Haider & Co
3.845
0.576
4.421
g.
BDO Ebrahim & Co
Non-responsive. No percentage for

out of pocket expenses was quoted
19.6.
Combined Evaluation. Technical evaluation was given
80% weightage and financial 20%. Combined score achieved by each
firm was as given below:221st Meeting, September 25, 2012, Islamabad
54
Rank
1st
2nd
3rd
4th
5th
6th
7th
Firms Names
Ilyas Saeed & Co
Horwath Hussain Ch & Co
Munif Ziauddin & Co
Hyder Bhimji
M Yusuf Adil Saleem & Co
Avais Haider & Co
BDO Ebrahim & Co
Technical
76.00
76.00
74.00
75.20
68.00
64.00
71.60
Financial
Total
20.00
96.00
19.05
95.05
20.00
94.00
15.81
91.01
16.67
84.67
17.69
81.69
Non-Responsive
19.7.
Proposal. The Evaluation Committee has recommended
award of audit assignment for all the four types of audits of NHA for
the year ended Jun 30, 2012 to M/s Ilyas Saeed & Co.
19.8.
The Member (Finance) presented details.
19.9.
Decision
19.10.
The Executive Board approved hiring of the services of
M/s Ilyas Saeed & Co, chartered accountants for four types of audits
of NHA for the year ended Jun 30, 2012 at a cost of Rs 3.910 million.
Action By
20.
Member (Finance)
Additional Agenda Item III
Toll O&M Contract of Gujranwala Toll Plaza: M/s
Pervaiz Ahmad & Co (OMC)
Additional Agenda Item IV
Toll O&M Contract of Bahawalpur Toll Plaza: M/s Haji
M Ramzan & Munshi M Shahid

20.1.
Gujranwala Toll Plaza (N-5).

a.
M/s Pervaiz Ahmad & Co was awarded the toll

Operation & Management (O&M) Contract of this Toll
Plaza wef Jan 4, 2011 at the annual guaranteed cost
of Rs 387.627 million.
55
20.2.
b.
The Toll O&M Contractor (OMC) filed an application

for grant of rebate on plea that the Toll Plaza is
situated within urban area and local commuters of
Kamonki Town, who have to travel through it, does
not pay toll, causing financial loss.
c.
The Toll OMC also contended that due to opening of

a provincial road from Eminabad to Sialkot about
150-meters ahead of Toll Plaza, a significant portion
of the traffic is bypassing the Toll Plaza.
d.
Meanwhile, fresh procurement process was initiated

but the firm was allowed to continue operating the
Toll Plaza on interim basis from Jan 5 to Feb 6, 2012
on the same terms & conditions. However, on
completion of procurement process, the Toll Plaza
was handed-over to the new bidder ie M/s NLC wef
Feb 6, 2012.
Bahawalpur Toll Plaza (N-5).

a.
M/s Haji M Ramzan & Munshi M Shahid was

awarded the toll O&M contract of this Toll Plaza wef
Nov 6, 2011 at the annual guaranteed cost of Rs
352.20 million.
b.
The OMC deposited monthly installments without

any default upto Jan-2012, however, from Feb-2012
onward, he deposited lesser amount and filed a
complaint regarding shortfall on plea that significant
traffic was diverting on other routes on completion of
Musa Pak Shaheed Bridge & other allied roads of the
provincial network.
20.3.
Examination by NHA. The above requests were examined
by a Committee of Officers comprising the following:a.
b.
c.
d.
e.
GM (Operation).
Director (OMU).
Director (Revenue).
Deputy Director (Ops-ETTM).
Assistant Director (Revenue).
56
20.4.
Recommendation. The Committee of Officers after detailed
analysis and granting personal hearing to the two toll OMCs has
recommended suitable compensation / rebate; which is submitted for
consideration and approval by the Executive Board.
20.5.
The Member (Operation) presented details.
20.6.
The Board Members made the following observations:a.
Such issues need to be processed strictly in

accordance with the provisions of the contract
agreements; which should be all encompassing.
b.
Such proposals can not be entertained by the Board

in a piecemeal manner. NHA needs to devise well
considered SOPs / Policy for handling such matters.
c.
NHA in the first instance should prepare the SOPs /

Policy and get it approved by the Executive Board.
d.
Individual cases may be handled / decided by NHA

in the light of approved SOPs / Policy.
Decision
20.7.
The Executive Board considered the proposals seeking
grant of relief in monthly guaranteed revenue to toll O&M Contractors
for Gujranwala & Bahawalpur Toll Plazas but directed action as per
the details given in Para-20.6 above.
Action By
21.
Member (Operation)
Overlay and Modernization of Lahore - Islamabad
Motorway (M-2) on Build-Operate-Transfer (BOT) Basis
21.1.
The Chairman informed the Board that LahoreIslamabad
Motorway (357 km, M-2), which was opened to traffic in Nov-1997,
has completed its designed life & virtually demands complete overlay.
If this overlay / improvement program is delayed, M-2 will enter into
rehabilitation mode; which will be financially unsustainable.
57
21.2.
NHA advertised the project on Build-Operate-Transfer
basis on Oct 12, 2011 and out of six (06) firms/JVs, who procured the
documents, only a joint venture led by FWO and comprising M/s ZKB
& Sachal submitted the BOT proposal. The technical proposal was
opened on Jul 6 & financial on Aug 8, 2012.
21.3.
Under this proposal, the JV is likely to make an upfront
payment of Rs 9,500 million to NHA on achieving financial close.
Subject to successful completion of the entire process, NHA plans to
utilize this amount for making payment to land owners from whom
land for M-2 was acquired by NHA in early 1990s and who are still
awaiting release of their payment.
21.4.
The Chairman added that a working paper for the info of
the Executive Board would be submitted in the next meeting.
Meanwhile, a letter of support has been issued to the JV led by FWO.
22.
Conclusion
22.1.
The Chairman wrapped up the meeting by thanking the
Board Members for their active participation and useful input. He also
expressed gratitude for the fact that the Members spared extended
time.
-------------------
58
EXTRACTS
CONFIRMED MINUTES OF THE
221ST EXECUTIVE BOARD MEETING
SEPTEMBER 25, 2012 AT ISLAMABAD
59

221 Executive Borad Meeting of NHA

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221 Executive Borad Meeting of NHA

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NHA Executive Boards Confirmed Minutes

NATIONAL HIGHWAY AUTHORITY

221st Meeting of the NHA Executive Board Held on

All Members attended. List of participants is at Annex-A.

Opening Remarks - Chairman NHA

221st Meeting, September 25, 2012, Islamabad

NHA Executive Boards Confirmed Minutes

NHA Executive Boards Confirmed Minutes

Peshawar-Torkham (N-5) (upgradation) USD 67 million.

Kalat - Quetta - Chaman (N-25) (balance works &

USD 30 million (tentative).

NHA Executive Boards Confirmed Minutes

Addendum-3 of M/s EA Consulting, Supervision

Appointment of Auditors for Audit of NHA Accounts.

Toll O&M Contract of Gujranwala Toll Plaza.

Toll O&M Contract of Bahawalpur Toll Plaza

221st Meeting, September 25, 2012, Islamabad

NHA Executive Boards Confirmed Minutes

A clear clause regarding revenue sharing of the

All proposals regarding creation of ancillary facilities

The Member (Planning) rendered following clarifications:a.

According to Clause-14.2 of Concession Agreement,

Since the cost and revenue of ancillary facilities,

The ancillary facilities, if any, will become NHAs

The observation regarding approval of ancillary

221st Meeting, September 25, 2012, Islamabad

NHA Executive Boards Confirmed Minutes

Minutes were accepted for confirmation.

The discussion at Paras 4.2 & 4.3 above will be

In Additional Agenda Item I titled Award of Work

This is subject to completion of codal

This is subject to completion of codal

Introduction - Working Paper

221st Meeting, September 25, 2012, Islamabad

NHA Executive Boards Confirmed Minutes

Para-13.33 of the Minutes.

Punjab Dec-2011 & Feb-2012 for District Lahore

NHA Executive Boards Confirmed Minutes

(-)19.01% the estimates of Punjab.

NHA rates are less despite higher specifications

NHA PC-Is are based on estimated quantities and

The Engineers Estimates are not project specific but

221st Meeting, September 25, 2012, Islamabad

NHA Executive Boards Confirmed Minutes

The CSR-2011 (Jan), though now under process for

221st Meeting, September 25, 2012, Islamabad

NHA Executive Boards Confirmed Minutes

221st Meeting, September 25, 2012, Islamabad

NHA Executive Boards Confirmed Minutes

Introduction - Working Paper

Detailed design fees of NESPAK for realignment

Design supervision fees of NESPAK for relocation of

As WAPDA was then insisting for change of executing

The Secretary (MoC) / Principal Accounting Officer

221st Meeting, September 25, 2012, Islamabad

NHA Executive Boards Confirmed Minutes

Since tender drawings were made by NESPAK on

Construction supervision of Relocation of KKH (R-1)

The Member (Planning) presented details.

Project traverses virgin land and entails delicate task

NESPAK possesses requisite geotechnical expertise

221st Meeting, September 25, 2012, Islamabad

NHA Executive Boards Confirmed Minutes

Cost of supervision consultancy is around 1.34% the