227 executive borad meeting of nha

8/9/2019 227 Executive Borad Meeting of NHA

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227th Meeting, April 29, 2013, Islamabad

NHA Executive Board’s Confirmed Minutes

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NATIONAL HIGHWAY AUTHORITYSecretariat Section

CONFIRMED MINUTES

Subject: 227th Meeting of the NHA Executive Board Held on Apr

29, 2013 at Islamabad

1. Introduction

1.1. The 227th meeting of the Executive Board of the National

Highway Authority was held at 1400 hours on Apr 29, 2013 at the

NHA Head Office Auditorium, Islamabad. Mr Hamid Ali Khan,

Chairman NHA 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 participantsparticularly Mr Khizer Hayat Gondal, AS (Budget) Finance Division

who was attending the Board meeting for the first time vice Mr Abdul

Khaliq. Mr Gondal brings with him vast experience and proven

professional ability and his presence & input would definitely help in

qualitative decision making.

2.2 The Chairman stated that the time for the meeting had to

be adjusted from morning to afternoon due to clash with a meeting

convened by the PM. Resultantly, not enough time would be available

for discussion as agenda is rather heavy as the Board is meeting after

a gap of more than two months.

2.3. The Chairman updated the Board on various important

activities during the past two months. One key event was the holding

of 26th NHC meeting on Mar 6, 2013. Key discussions taken during

this meeting are listed in Annex-B.


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2.4. The Chairman stated that in Mar & Apr-2013, he visited a

number of mega projects / road sections in Balochistan, Sindh,

Punjab & Khyber Pakhtunkhwa and it is satisfying to report that the

progress on most of the projects inspected was generally satisfactory. The road sections / projects visited included the following:-

a. Quetta - Sukkur (N-65)

b. Multan - DG Khan (N-70)

c. DG Khan - Taunsa (N-55)

d. Bridge across River Indus linking Zahirpur (N-5) -

Chachran Sharif (N-55)

e. Khushalgarh Bridge across River Indus (N-80)

f. Larkana Packageg. Bridge across River Indus linking Qazi Ahmed - Amri

2.5. During the period under review, following inauguration/

groundbreaking ceremonies were graced by the President of Pakistan:-

a. Inauguration of Rasheedabad Chowk Flyover of Inner

Ring Road Multan on Mar 5, 2013.

b. Groundbreaking of Syedwala Bridge across River

Ravi on Mar 5, 2013.

c. Inauguration of Mir Wah Sanjar Chang Road to

Hyderabad - Badin Road on Mar 9, 2013.

d. Groundbreaking of Karachi - Hyderabad Motorway

(M-9) on Mar 9, 2013.

2.6. The Chairman added that 2x Committees of Officers have

recently been appointed for revision of NHA Code-2005 and for

updating CSR-2011 as CSR-2013 and both the revised versions will

soon be placed before the Executive Board for approval.

2.7. The Chairman also provided an update on award of

contracts for Flood Emergency Reconstruction Project (FERP) stating

that the status of 25 contract packages is as follows:-


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a. NCB contracts already awarded 11

b. NCB contracts (proposed to be awarded today) 7

c. NCB contract (clearance awaited from ADB) 1

d. ICB contracts (to be procured by Jun 30, 2013) 6Total 25

NCB: National Competitive Bidding ICB: International Competitive Bidding

2.8. The Chairman also appraised on the status of release of

PSDP funds stating that NHA has so far received only Rs 11.95 billion

against the local currency allocation of Rs 23.92 billion for 2012-13 &

delay in provision of 3rd quarter release has resulted in accumulation

of outstanding liabilities. Further, it is apprehended that the FinanceDivision might impose a cut of Rs 2 billion on NHA’s allocation for

current financial year and this would be major setback.

3. Operational Issues Concerning NHA Network

3.1. The IG (NH&MP) stated that he would like to avail the

opportunity to highlight some important operational issues:-

a. Theft of fence on Motorways (M-1 & M-2) is continuing

unabated and, because of this menace, movement of

stray animals and trespassing by locals is increasing

day-by-day and this is seriously compromising road

safety on this access control facility. Apart from other

measures, foot patrolling is being introduced. For

this purpose, NH&MP needs manpower from NHA.

b. In terms of an understanding reached with Goods Transport Association (GTA) strict enforcement

measures are being taken effective Apr 15, 2013 and,

instead of fine, overloaded vehicles are not being

allowed to ply on national highway & motorways. The

GTA is also responding positively and is gradually

cutting down on overloading; consequently, fine

money is dwindling. Since operation, management &

maintenance contractors are running weigh stations

on profit sharing basis, they are disgruntled andwish to close down services.


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3.2. The Chairman NHA responded with following remarks:-

a. NHA is contemplating various measures for putting a

check on theft of fencing. One step is to include

management of fence in routine maintenancecontracts for different reaches at a suitable cost. The

RM Contractor will take full responsibility for

ensuring that the fence is not stolen and all gaps are

promptly closed.

b. The IG (NH&MP)’s request for provision of manpower

is also receiving attention and, as a first step, 150

persons are being detailed. Note. Cost involved will be

met 50:50 (NH&MP : NHA) out of police fine money.Appropriate logistic support would be required for

them in different camps.

c. NHA floated a proposal for “Overlay & Modernization

of Motorway (M-2) on BOT Basis” and the process of

finalizing concession agreement with FWO (JV) is in

advance stage. This concession, if & when finalized,

will be all encompassing including measures for

check on theft of fencing and immediate plugging of gaps, if any.

d. Through check on overloading, NHA’s main interest

is to safeguard its precious network and this can

only be ensured through strict enforcement. Because

of the decision not to allow any overloaded truck on

national network, NHA has received threats of strike

by goods carriers particularly those transporting coal

wef May 5, 2013. The apprehension of weigh stationoperators will also be looked into.

3.3. The Member (Operation) remarked that first relaxation

was allowed to the truckers by the ministerial committee and now no

fines are being imposed because of the decision not to allow movement

of any overloaded goods carrier on NHA network. Sudden decrease in

revenue generated through weigh stations will attract audit objections;

NHA would therefore be presenting a working paper on this subject to

the Executive Board.


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FORMAL BOARD PROCEEDINGS

4. Agenda Items

4.1. The Secretary NHA stated that 18 x working papers were

circulated in three volumes, Vol-I (13 items) on Apr 17, Vol-II (2 items)

on Apr 23 and Vol-III (3 items) on Apr 26, 2013. Subject-wise

distribution is as follows:-

Item No

a. Minutes 2

b. Revised PC-I 2

c. Hiring of consultant 1

d. Construction matter 1

e. Award of works 3

f. Financial matters 2

g. Operational matters 3

h. Admin matters 4

Total 18

4.2. The Secretary NHA regretted the fact that Vol-III wascirculated belatedly. Since the agenda is heavy, and the meeting has

commenced very late, the Board may like to take up important items

for discussion first and time permitting dispose of the remaining

agenda. The suggestion was agreed to.

4.3. The Chairman added that, for leftover items and also that

in pipeline, the next Board meeting will be convened at an early date.

On the suggestion of Secretary NHA, it was decided to convene the

228th meeting on May 8, 2013.

5. Agenda Item 1

Confirmation of Minutes - 225th Meeting of the

Executive Board Held on Feb 11, 2013

5.1. The Secretary NHA solicited confirmation of minutes of

the 225th Executive Board meeting held on Feb 11, 2013. He recalled

that the minutes were circulated on Apr 17, 2013 and that no written

comments / observations have been received from any Member.


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5.2. The VP-NESPAK recalled that in the context of discussion

on Agenda Item 2 dealing with an award of works case in which FWO

was also competing, he had suggested that to avoid complications in

future contracts, due to addition of 6% income tax in the bid of FWOor NLC after opening, it might be desirable to seek policy decision from

GoP after prior legal advice. He suggested that while processing this

matter the fact that FWO & NLC also enjoy certain other concessions

such as non submission of performance & mobilization advance

guarantees may also be covered.

5.3. The minutes were accepted for confirmation.

Decision

5.4. The Executive Board confirmed minutes of 225th meeting

held on Feb 11, 2013 with following amendments:-

a. In Agenda Item 2 “Award of Works under FERP:

NCB-N-14 Rehabilitation of Kohala–Muzaffarabad

Road, Pack-III, Construction of Chattar Kalas and

Dulai Bridges (S-2)” replace Para 5.15 (d) as follow:-

For: The VP-NESPAK stated that to avoid

complications due to addition of 6%

income tax in the bid of FWO or NLC after

opening, in future contracts; it might be

desirable to seek policy decision from GoP

after getting prior legal advice.

Read: The VP-NESPAK stated that to avoid

complications in future contracts; due to

addition of 6% income tax in the bid of

FWO or NLC after opening, and the fact

that they are also not required to submit

performance & mobilization advance

guarantees, it might be desirable to seek

policy decision from GoP after getting

prior legal advice.


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6.3. The Member (Fin) NHA added that a reference was made

to SECP; who have responded that there is no statutory obligation on

any insurance company in Pakistan to seek any credit rating of itself

from any rating agency and it (SECP) neither issues nor recognizesany such rating of insurance companies. Later JCR-VIS, the agency

that assigned “A-” rating to M/s Silver Star informed that all entities /

insurance companies rated “A+,” “A” or “A-” are considered under one

category. JCR-VIS under rating band “A” segregates the risk profile of

entities/insurance companies under same category by assigning a

positive or negative sign. Thus it can be inferred that “A” is above “A-.”

Matter, therefore, stand closed and M/s Silver Star is no more being

considered.

6.4. The Secretary NHA invited attention to the decision on

Agenda Item 8 wherein enlistment of Sindh Bank, ZTBL and SME

Bank on NHA’s panel was not endorsed by the Board as these banks

did not enjoy “A” rating. As recorded in foot note under Para-11.11

(decision), ZTBL, subsequently, intimated that safety of deposits

mobilized by it is also guaranteed under the Banks Nationalization

Act, 1974, therefore, the matter may be reconsidered.

6.5. After discussion consensus was that since 100% share of

ZTBL is with GoP, NHA may be allowed to include it on its panel after

ascertaining if this bank is held on the approved panel of other major

public sector organizations.

6.6. The Chief (T&C) invited attention to decision recorded in

Para-15.15 of the minutes concerning Additional Agenda Item-II

“Absorption of Staff Employed by NHA Against Provisional Sum of

Project PC-Is on Regular Strength” and stated that as decided by the

Board this subject was to be discussed again during today’s meeting

and he would request that the matter may be deliberated now that the

MoC has also accorded clearance of the minutes.

6.7. Matter was discussed and after seeking consent of JS-II

(MoC) it was decided that the issue highlighted in preceding Para will

be deliberated and decided in the next Board meeting.

6.8. The minutes were accepted for confirmation.


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Decision

6.9. The Executive Board confirmed minutes of 226th meeting

held on Feb 26, 2013 with the direction that following footnote may be

added under Para-11.11 (Decision) concerning Agenda Item 8

“Enlistment of Sindh Bank Ltd, Zarai Taraqiati Bank Ltd and Small &

Medium Enterprise (SME) Bank Ltd on NHA’s Panel”:-

“The Executive Board reconsidered the matter in its 227 th

meeting of Apr 29, 2013 and decided that since almost

100% share of ZTBL is with GoP, NHA is allowed to include

ZTBL on its panel after ascertaining if other major public

sector organizations have placed their funds with ZTBL.”

Action By : Secretary NHA

7. Agenda Item 3

Revised PC-I : Barian - Nathiagali - Abbottabad Road

(65.34 Km)

7.1. This matter could not be discussed because of paucity of

time and will be taken up in the next Executive Board meeting.

Action By : Member (Planning)

8. Agenda Item 4

Hiring of Consultants: Feasibility Study for Wazirabad

– Khanqah Dogran Expressway




9. Agenda Item 5

Award of Toll Plaza on Peshawar-Torkham Section of

N-5 through Negotiated Tendering as a Pilot Project



Action By : Member (Operation)


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10. Agenda Item 6

Toll Exemption at Qutbal Toll Plaza, Tehsil Fatehjang

(N-80)

10.1. This matter could not be discussed because of paucity of time and will be taken up in the next Executive Board meeting.


11. Agenda Item 7

Construction of Khanewal - Multan Motorway (M-4

Extension, 57 Km) : Design of Bridges Flyover & Sub-

Structures



Action By : Member (Aided Projects)

12. Agenda Item 8

Approval of Accounts of Road Maintenance Account

(RMA) for the Year Ended June 30, 2012

Introduction - Working Paper

12.1. Introduction. Accounts of Road Maintenance Accounts

(RMA) for period ended Jun 30, 2012 have been prepared by Finance

Wing in line with accounting policies given in NHA’s Financial Manual

and according to International Financial Reporting Standard (IFRS).

12.2 Audited Financial Statements.

a. After auditing the RMA Financial Statements for the

year ended Jun 30, 2012, M/s Ilyas Saeed & Co,

Chartered Accountants "The Auditors" have

submitted the audited financial statements of RMA

duly initialed for formal approval by Executive Board.

b. Out of four qualifications appearing in last year's

(2010-11) Audit Report, two on revenue collection

and contingencies and commitment have beenremoved in current year audit (2011-12).


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12.3. Auditors Opinion.

a. Proper books of accounts have been kept by RMA;

b. Balance sheet and income and expenditure account

together with the notes thereon have been drawn upappropriately and are in agreement with the books of

accounts and are further in accordance with

accounting policies consistently applied;

c. Expenditure incurred during the year was for the

purpose of RMA’s operation; and

d. Operations conducted & expenditure incurred during

the year was in accordance with the objects of RMA.

12.4. Proposal. The Executive Board is requested to approve the

Road Maintenance Accounts for the year ended Jun 30, 2012 along

with the specific approval of following items:-

Description Rs in M

a. Additions to property, plant & equipment-at cost 25.012

b. Additions in capital work-in-progress 646.052

Board’s Deliberations

12.5. The Member (Fin) presented details. He stated that when

NHA’s financial statements were first audited, the auditors had raised

17 qualifications and, over the years, by improving its working system

NHA has been able to bring down the qualifications to two. Even for

these two cases, figures have been reconciled and only documentation

is an issue, as explained in Annex-C.

12.6. Matter was discussed and cleared.

Decision

12.7. The Executive Board approved the Road Maintenance

Accounts for the year ended Jun 30, 2012 along with the following:-

Description Rs in M



Action By : Member (Finance)


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13. Agenda Item 9

Approval of Accounts of National Highway Authority

(Entity) for the Year Ended Jun 30, 2012


13.1. Introduction. Accounts of NHA for the period ended Jun

30, 2012 have been prepared by Finance Wing in line with accounting

policies given in NHA’s Financial Manual and according to

International Financial Reporting Standard (IFRS).

13.2. Audited Financial Statement.

a. After auditing the “Entity Financial Statements” for

the year ended Jun 30, 2012, M/s Ilyas Saeed & Co,

Chartered Accountants "The Auditors" have

submitted the audited financial statements duly

initialed for formal approval by NHA Executive Board.

b. Out of three qualifications appearing in last year's

(2010-11) Audit Report, one on revenue collections

has been removed in current audit (2011-12).

13.3. Auditors Opinion.

a. Proper books of accounts have been kept as required

by NHA Act, 1991 (amended 2001);

b. Balance sheet and income and expenditure account

together with the notes thereon have been drawn up

appropriately and are in agreement with the books of

accounts and are further in accordance with

accounting policies consistently applied;

c. Expenditure incurred during the year was for the

purpose of the Authority’s operation; and

d. Business conducted, investments made and

expenditure incurred during the year were inaccordance with the objects of the Authority.


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13.4. Proposal. The Executive Board is requested to approve

NHA (Entity) Financial Statements for the year ended Jun 30, 2012

along with the specific approval of following items:-

Description Rs in Ma. Additions to property, plant & equipment-at cost 788.719



13.5. The Member (Fin) presented details. He stated that when

NHA’s financial statements were first audited, the auditors had raised

17 qualifications and, over the years, by improving its working system

NHA has been able to bring down the qualifications to two. Even for

these two cases, figures have been reconciled and only documentation

is an issue, as explained in Annex-D

13.6. The VP-NESPAK observed that he has been attending the

Board meetings for the past around three years and during this period

no qualification has been removed.

13.7. The Member (Fin) clarified that the Audit Report for the

period ended Jun 30, 2011 contained three qualifications and the one

concerning reporting of revenues collected has been removed this

time. The nature of existing qualifications viz adjustment of land

acquisition advances and confirmation of contingent liabilities from

NHA’s legal advisors is such that these will stay, however, the figures

mentioned will be gradually brought down.

13.8. The Member (Plg) added that land acquisition advances

are deposited by NHA in the provincial treasury and in some cases it

takes decades to settle the matter for various reasons particularlydisputed ownerships, court cases and refusal of land owners to accept

the price determined by the District Price Assessment Committees. In

many cases, NHA acquires the land but funds are not provided by the

GoP. Land for motorways was acquired in 1990’s but NHA has yet to

clear outstanding dues running into billions of rupees.

13.9. The Secy NHA added that for settlement of outstanding

land acquisition dues, NHA had moved a summary for Prime Minister

in Jun-2012 for one time allocation of Rs 11 billion but outcome isawaited.


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13.10 The VP-NESPAK observed that the income & expenditure

statement available at Page-6 of the working paper show increase in

general & administrative items from Rs 11.60 billion in 2011 to Rs

21.96 billion in 2012 and this figure appears too high.

13.11. The Member (Fin) clarified that the variation is because of

exchange loss in booking expenditure in foreign exchange.


13.13. The Member (Fin) also solicited permission for initiating

the process for appointment of Auditors for FY 2012-13. The

permission was granted.

Decision

13.14. The Executive Board approved NHA (Entity) Financial

Statements for the year ended Jun 30, 2012 along with the following:-

Description Rs in M



13.15. The Board granted permission to appoint Auditors for the

audit of NHA’s Financial Statements for FY 2012-13 through

competition among the Audit firms listed with the State Bank of

Pakistan in Category-A.

Action By : Member (Finance)

14. Agenda Item 10

Grant of BS-19 to Private Secretaries and Re-

designation as Senior Private Secretary


14.1. Pursuant to approval by the Prime Minister, Estab Div

notified grant of BS-18 to Private Secretaries (PS) on completion of

seven (7) years satisfactory service in BS-17 wef Jan 26, 2009 vide OMNo 4/1/98-R-6 dated Feb 4, 2009.


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14.2. Consequent upon approval by NHA Executive Board (207th

meeting of Aug 23, 2011), following regular PS (BS-17) were granted BS-18

wef Apr 1, 2011 vide Office Order dated Nov 10, 2011:-

1. Mr Khalid Waseem

2. Mr Muhammad Yousaf

3. Mr Zafar Iqbal

Note : Names given in order of seniority.

14.3. Later, Finance Division (Reg Wing) vide OM F No 19(55)

Legal-II/2010-1055 dated Dec 23, 2011, upgraded under-mentioned

posts wef Dec 23, 2011:-

a. Private Secretaries (BS-17).

i. Will continue to remain in BS-17 and will be granted

BS-18 after putting in 5 years satisfactory service

instead of 7 years.

ii. Those in BS-18 will further be granted BS-19 after

putting in 12 years services in BS-17 and abovetaking benefit of Estab Div’s OM No 4/ 9/S) R-II of

Aug 2, 1983.

iii. On grant of BS-19, nomenclature of the post will be

Senior Private Secretary.

iv. Existing Private Secretaries in BS-17 will be granted

BS-18 on one time basis irrespective of their length of

service in BS-17.

b. Stenographers (BS-15).

Upgraded to BS-16 with enhancement of qualification for

initial appointment from Intermediate to Graduation.

c. Stenotypists (BS-12).

Upgraded to BS-14 with enhancement of qualification for

initial appointment from Matriculation to Intermediate


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14.4. NHA upgraded the above mentioned posts with Executive

Board’s approval (212th meeting of Jan 26, 2012) notified vide Office Order

dated Mar 9, 2012. Accordingly, following PSs (BS-17) were upgraded

to BS-18 wef Dec 23, 2011:-

4. Mr Javed Sultan

5. Mr Abdul Razzaq Khan

6. Mr Abdul Salam Khurshid

Note : Names given in order of seniority.

14.5. The Estab Div’s OM No 1/9/80-R-II of Jun 2, 1983

provides length of service for promotion as under:-

a. Where initial appointment of a person already in

government service takes place, on recommendations

of the Federal Public Service Commission, in a post

in BS-18, 19 or 20, the length of service specified in

this OM shall be reduced by the periods specified in

proviso (i).

b. Where first appointment of a person other than aperson covered by proviso (ii) was made to

government service in BS-16 or below, one-half of the

service in BS-16 and one-fourth in BS-15 and below

may be counted as service in BS-17 for computing

length of service for the purpose of promotion only.

14.6. The NHA’s Employees Service Rules, 1995 are silent for

grant of BS-19 and nomenclature as Senior PS to PS (BS-18).

However, Rule 2 (3) of SRO 70 (KE)/95 of NHA’s Service Rules 1995provides, as under:-

“In all matters not specifically provided in these Rules, the

Rules applicable to the employees of the Federal

Government shall apply”.

14.7. It is proposed that six senior most PS (BS-18) who fulfill

the criteria for grant of BS-19 in the light of Finance Division’s OM

dated Oct 23, 2011 and May 25, 2012 may be upgraded as Senior PS(BS-19).


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14.8. PERs quantification and calculation of service in BS-18

and below is given in Annex-E.

14.9. The NHA Executive Board is the authority competent for

appointment to posts in BS-18 & 19 under Rule-6 of NHA’s

(Appointments & Promotions) Rules 1995. The Board is, accordingly,

requested to approve the above proposal.


14.10. The Member (Admin) presented details.

14.11. Matter was discussed and cleared with directions that

action will be taken strictly in accordance with the Finance Division

(Reg Wing)’s OM F No 19(55) Legal-II/2010-1055 dated Dec 23, 2011

and OM F No 1(1) R.I/2012.

Decision

14.12. The Executive Board approved upgradation of following

6x Private Secretaries (BS-18) who fulfill the criteria given in Finance

Division (Reg Wing)’s OM F No 19(55) Legal-II/2010-1055 dated Dec

23, 2011 and OM F No 1(1) R.I/2012 to BS-19 as Senior PS from the

dates mentioned against each:-

SeniorityPosition

NameEffective

Date1. Mr Khalid Waseem 23.12.11

2. Mr Muhammad Yousaf 23.12.113. Mr Zafar Iqbal 23.12.114. Mr Javed Sultan * 23.12.115. Mr Abdul Razzaq Khan 15.07.126. Mr Abdul Salam Khurshid 23.12.11

* Retired on attaining the age of superannuation wef 31-3-12

Action By : Member (Admn)


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15. Agenda Item 11

Writing-Off Loss Sustained by NHA : Theft of Toyota

Corolla LOZ-3239, Model 1996




16. Agenda Item 12


Corolla Car No IDJ-5271, Model 1996




17. Agenda Item 13


Double Cabin No GA-9546, Model 2002




18. Agenda Item 14

Award of Works : Construction of Amri Qazi Ahmed

Bridge Across River Indus Pack-III: Construction of

Left Guide Bank for Main Bridge


18.1. Background/Introduction.

a. Due to linear geography of Pakistan, National

Highway (N-5) & Indus Highway (N-55) are basic

south-north arteries traversing astride River Indus.


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b. N-5 carries about 65% of freight & passenger traffic

and caters for 80% of national economic activities.

N-55 is being developed for bringing the areas west

of River Indus at par with that in east which are

historically more developed. Another aim is to easetraffic burden on N-5.

c. To meet the objective and improve accessibility of a

large area, more crossing points across River Indus

connecting N-5 ~ N-55 are imperative. Projects

undertaken include:-

i. Larkana - Khairpur Bridge (completed).

ii. Shaheed Benazir Bhutto Bridge (ongoing).iii. Khushalgarh Bridge in District Kohat (ongoing).

iv. Amri - Qazi Ahmed Bridge (ongoing).

d. This working paper deals with Amri - Qazi Ahmed

Bridge.

18.2. PC-I of Amri Bridge - Qazi Ahmed Across River Indus.

a. PC-I for construction of this Bridge (between Hyderabad

Bypass and Dadu - Mora Bridge) was approved by ECNEC

at a cost of Rs 3683 million on Jan 21, 2010.

b. Due to enhancement of the Bridge from 2-lane to 4-

lane, revised PC-I of Rs 7292.11 million has been

recommended by Executive Board (222nd meeting of Oct

16, 2012) for approval by ECNEC through CDWP.

c. PSDP allocation 2012-13 is Rs 500 million.

18.3. Construction Packages / Contracts.

I. Contract for main Bridge with an interchange at

N-55 & approach road Amri (3.285 km) & 3 x RBOD

Bridges was awarded to M/s Sachal for Rs 1511.67

million on Feb 2, 2010. Revised cost is Rs 2016.808

million due to major scope revision. Progress is 79%.


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II. Contract for approach road to Qazi Ahmed (N-5, 16

km) was awarded to M/s SMAD Baloch on Apr 9,

2010 for Rs 1510 million. Progress is 54%.

III. Contract for construction of left guide bund for main

Bridge is now to be awarded. This working paper

deals with Pack-III.

IV. Contract for construction of right guide bank bund,

J-spur & protection bund around Amri village is yet

to be awarded. This matter is also on today’s agenda.

18.4. Revised Scope of Work.

Scope of Work Detail

a. Main Bridge Length : 1.320 km

b. Bridge Width : 19.820 m

c. Lanes : 4

d. Length of Approach Roads : 19.345 km

e. Length of Alignment including Bridge : 20.665 km

f. Length of Guide Banks : 3.534 km

18.5. Engineer’s Estimate. The estimated cost of Pack-III is Rs

325,622,571/- (CSR-2009 + 9.1%, Nawabshah).

18.6. Tendering Process/Technical Qualification.

a. Procedure Adopted Single-stage-two-

envelop

b. Bid Invitation Dec 8, 2012

c. Bid Documents

Purchased / Downloaded

19 firms / JVs

d. Bid Submission Jan 7, 2013

e. Bids Submitted 14 firms / JVs *

f. Technically Qualified 2 firms *

Note. * List of firms / JVs is at Annex-F.


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18.7. Technical Evaluation. Technical proposals were opened by

the Bid Opening & Evaluation (BO&E) Committee constituted as per

NHA Code and evaluated in accordance with eligibility criteria andtechnical aspects specified in bidding documents. Only two bidders

meeting the requirements of Clause IB-3, 11.1A, 15, 18, 26.1, 26.2

and IB-35 were declared technically qualified.

18.8. Financial Proposals. These were opened on Mar 28, 2013.

Following position emerged vis-à-vis estimate of Rs 325,621,340/-

(CSR-2009+ 9.1%):-

LowestRanking

Contractor(M/s)

AnnouncedBid (Rs)

CorrectedBid (Rs)

Variation

1st Sachal (1) 339,106,313 339,106,366 +4.14%

2nd SMADB (2) 587,182,860 587,182,860 +80.33%

(1) Sachal Engineering Works (2) Sardar M Ashraf D Baloch

18.9. Recommendation. The Tender Acceptance Committee has

recommended award of contract to the lowest evaluated bidder M/s

Sachal at their corrected/evaluated bid price of Rs 339,106,366/.

18.10. Proposal. Approval of the above recommendation.


18.11. The Member (Planning) introduced the proposal. The GM

(P&CA) presented details.

18.12. The Chairman stated that the Bridge was originally 2-lanebut the scope was revised to 4-lane on the directive of the President of

Pakistan. Spans were also enhanced subsequent to revised model

study undertaken in the wake of Superfloods-2010. These measures

delayed the project but for the past few months work was progressing

well. Lately, however, piling work again slowed down as water flow

reached a peak level of 30,000 cusecs against the average of 2500

cusecs for April.


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18.13. The AS (Fin) observed that modified PC-I though cleared

by the Board is yet to be considered by the CDWP. He enquired if

further works can be awarded without seeking anticipatory approval

of the modified PC-I.

18.14. The Chief (T&C) clarified that the proposed river training

works being continuity of approved project can be awarded.

18.15. The VP-NESPAK termed disqualification of 12 out of 14

competing firms including FWO on technical grounds as unusual.

18.16. The Member (Plg) explained that technical qualification

criterion is predefined and the bidders are cleared based purely on the

analysis of documents submitted. Accordingly, technical evaluationwas carried out on the basis of comparison of bidders’ submissions

(face value) with criteria / threshold stipulated in bid documents (see

Annex-G). FWO’s bid was not cleared as they failed to provide proof of

similar work experience and NHA was able to satisfy them of this

decision.

18.17. The Chairman added that the Secretary (MoC) / PAO (Mr

Anwar Ahmad Khan) was personally overseeing the procurement process

for the subject river training works and that he was fully satisfied with

the sanctity of the entire bidding proceeds.

18.18. The JS (MoC) observed that the lowest bid is only +4.14%

of the estimated cost based on CSR-2009+9.1% and appears too low

and enquired if the Contractor would be able to deliver the project.

18.19. The Chief (T&C) pointed out that variation between the

two bids is extraordinary (76%) and this is quite abnormal.

18.20. The Member (Planning) clarified, as follows:-

a. M/s Sachal is a reputed Contractor and only few

years back completed construction of Larkana -

Khairpur Bridge across River Indus. They are also

constructing Qazi Ahmed - Amri main Bridge, which

is also nearing completion. They possess requisite

capability and experience to deliver the subject rivertraining works also despite low rates.


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c. To meet the objective and improve accessibility of a

large area, more crossing points across River Indus

connecting N-5 ~ N-55 are imperative. Projects

undertaken include:-

1. Larkana - Khairpur Bridge (completed).2. Shaheed Benazir Bhutto Bridge (ongoing).3. Khushalgarh Bridge in District Kohat (ongoing).4. Amri - Qazi Ahmed Bridge (ongoing).

d. This working paper deals with Amri - Qazi Ahmed

Bridge.

19.2. PC-I of Amri Bridge - Qazi Ahmed Across River Indus.

a. PC-I for construction of this Bridge (between Hyderabad

Bypass and Dadu - Mora Bridge) was approved by ECNEC

at a cost of Rs 3683 million on Jan 21, 2010.

b. Due to enhancement of the Bridge from 2-lane to 4-

lane, revised PC-I of Rs 7292.11 million has been

recommended by Executive Board (222nd meeting of Oct

16, 2012) for approval by ECNEC through CDWP.

c. PSDP allocation 2012-13 is Rs 500 million.

19.3. Construction Packages / Contracts.

I. Contract for main Bridge with an interchange at N-

55 and approach road Amri (3.285 km) & 3 x RBOD

Bridges was awarded to M/s Sachal for Rs 1511.67

million on Feb 2, 2010. Revised cost is Rs 2016.808million due to major scope revision. Progress is

79%.

II. Contract for approach road from left abutment to

Qazi Ahmed (N-5) (16 km) was awarded to M/s

SMAD Baloch on Apr 9, 2010 for Rs 1510 million.

Progress is 54%.

III. Contract for construction of left guide bund for

main bridge is yet to be awarded.


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IV. Contract for construction of right guide bank bund,

J-Spur and protection bund around Amri village is

now to be awarded. This working paper deals with

Pack-IV.

19.4. Revised Scope of Work.

Scope of Work Detail

a. Main Bridge Length : 1.320 km

b. Bridge Width : 19.820 m

c. Lanes : 4

d. Length of Approach Roads : 19.345 km

e. Length of Alignment including Bridge : 20.665 km

f. Length of Guide Banks : 3.534 km

19.5. Engineer’s Estimate. The estimated cost of Pack-IV is Rs

419,482,536/- (CSR-2009 + 9.1%, Dadu).

19.6. Tendering Process/Technical Qualification.

a. Procedure Adopted Single-stage-two-envelop

b. Bid Invitation Dec 8, 2012c. Bid Documents

Purchased / Downloaded18 firms / JVs

d. Bids Submitted 12 firms / JVs *e. Bid Opening Jan 7, 2013f. Technically Qualified 2 firms *

Note. * List of firms / JVs is at Annex-H.

19.7. Technical Evaluation. Technical proposals were opened by

the Bid Opening & Evaluation (BO&E) Committee constituted as per

NHA Code and evaluated in accordance with eligibility criteria and

technical aspects specified in bidding documents. Documents of only

two bidders meeting the requirements of Clauses IB-3, 11.1A, 15, 18,

26.1, 26.2 and IB-35 were found authentic.

19.8. Financial Proposals. These were opened on Mar 28, 2013.

Following comparative position vis-à-vis estimate of Rs 419,482,536/-(CSR-2009+ 9.1%, Dadu) emerged:-


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LowestRanking

Contractor(M/s)

AnnouncedBid (Rs)

CorrectedBid (Rs)

Variation

1st Sachal (1) 410,888,313 410,888,324 (-)2.05%

2nd SMADB (2) 595,360,770 595,360,770 + 41.93%

(1) Sachal Engineering Works (2) Sardar M Ashraf D Baloch

19.9. Recommendation. The Tender Acceptance Committee has

recommended award of contract for to the lowest evaluated bidder

M/s Sachal at their corrected/evaluated bid price of Rs 410,888,313/.

19.10. Proposal. Approval of the above recommendation.




19.12. The Board was informed that after a competitive bidding

process, position in this case was also similar to Pack-III of the river

training works for subject Bridge wherein only M/s Sachal & SMADB

were finally pre-qualified and gap between the bids submitted by the

two was also substantial. However, in this case, gap is 44% against

76% in Pack-III.


19.14. The Chief (NTRC) stressed that NHA should ensure timely

completion of necessary spadework including provision of working

drawings for expeditious commencement of construction activities and

to avoid burdening the exchequer with idling claims.

Decision

19.15. The Executive Board approved award of works for

“Construction of Amri Qazi Ahmed Bridge across River Indus, Pack-IV:

Right Guide Bank, J-Spur and Protection Bund around Amri Village”

may be awarded to the lowest evaluated bidder M/s Sachal

Engineering Works (Pvt) Ltd at their corrected/evaluated bid price of

Rs 410,888,313/- (Rupees four hundred & ten million, eight hundred & eighty

eight thousand, three hundred and twenty four) only; which is (-) 2.05% the

estimate of Rs 419,481,185/- (CSR-2009+9.1%).



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20. Agenda Item 16

Rationalization of Toll Rates on NHA Network


20.1. Introduction. NHA is the custodian of a road network of

around 12000 km that primarily serve inter-provincial long distance

traffic plying through important commercial cities and major freight

terminals. NHA roads are only 4.6% of Pakistan’s entire road network,

but carry more than 80% of the country's traffic.

20.2. Toll. NHA Act 1991 (amended 2001) empowers NHA tocollect toll on its network as stated in Section-10(2)(vii), Chapter-III.

20.3. Maintenance Backlog.

a. Maintenance needs of NHA network are met through

routine, periodic & emergency maintenance,

geometrics & highway safety improvements, corridor

management, hill slope stability, etc.

b. Under the constraints of low budget and higher

traffic volumes on an ever-expanding network, it is

essential to use available resources and budget in a

most efficient and optimal way to maintain desired

standards of performance & serviceability.

c. Improvement in maintenance standards has resulted

in increased maintenance cost. But this has a direct

relationship with VOC (Vehicle Operating Cost); which is

reduced, rendering a healthy influence on economy.

d. Since toll rates do not match ever-increasing repair &

maintenance cost and also as almost 50% of NHA

network is not tolled but still has to be appropriately

maintained, NHA is unable to meet the growing

needs and this is widening the maintenance backlog.


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20.4. Rationalization of Existing Toll Rates.

a. There is a need to rationalize current toll rates, toll

revenue being the major source contributing to RMAdedicated solely for operation & maintenance (O&M)

of NHA network.

b. The O&M cost of motorways is much higher than

national highways. Since the revenue generated is in-

sufficient to cater for O&M needs, maintenance of

motorways has to be subsidized. To make motorways

operate at least at breakeven level toll rates need

suitable rationalization.

20.5. Proposal. Approval of rationalized toll rates, as per detail

given below, to be adopted wef Jul 1, 2013:-

Vehicle CategoryExisting Toll Revised Toll Increase

PkmRate Pkm Rate Pkm

A. National Highways

Car 25 0.5 30 0.6 0.1Wagon 35 0.7 40 0.8 0.1Buses 75 1.5 80 1.6 0.12 Axle Truck 90 1.8 180 3.6 1.83 Axle Truck 90 1.8 180 3.6 1.8Articulated Truck 175 3.5 180 3.6 0.1Average 1.6 2.3 0.7

B. Islamabad–Peshawar Motorway (M-1)

Car 130 0.8 150 1.0 0.1Wagon 220 1.4 250 1.6 0.2Coaster 305 2.0 350 2.3 0.3Bus 440 2.8 510 3.3 0.5Rigid Truck 570 3.7 650 4.2 0.5Articulated Truck 700 4.5 800 5.2 0.6Average 2.7 3.1 0.4

C. Lahore - Islamabad Motorway (M-2)

Car 290 0.8 370 1.0 0.2Wagon 485 1.3 620 1.7 0.4Coaster 680 1.9 870 2.4 0.5Bus 970 2.6 1240 3.4 0.7Rigid Truck 1260 3.4 1600 4.4 0.9

Articulated Truck 1550 4.2 2000 5.4 1.2Average 2.5 3.2 0.7


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Vehicle CategoryExisting Toll Revised Toll Increase

PkmRate Pkm Rate Pkm

D. Pindi Bhattian – Faisalabad Motorway (M-3)

Car 50 0.9 50 0.9 0.0

Wagon 80 1.5 90 1.7 0.2Coaster 115 2.2 130 2.5 0.3Bus 160 3.0 180 3.4 0.4Rigid Truck 210 4.0 230 4.3 0.4Articulated Truck 260 4.9 290 5.5 0.6Average 2.9 3.2 0.3

E. Karachi - Hyderabad Superhighway (M-9)

Car 30 0.2 40 0.3 0.1Wagon 45 0.3 50 0.4 0.04Bus 75 0.6 80 0.6 0.04

2 Axle Truck 90 0.7 180 1.3 0.73 Axle Truck 90 0.7 180 1.3 0.7Articulated Truck 175 1.3 180 1.3 0.0Average 0.6 0.9 0.3

F. Kohat Tunnel (N-55)

Car 45 0.6 60 0.8 0.2Wagon 165 2.2 180 2.4 0.7Bus/2 & 3 Axle Truck 205 2.8 250 3.3 0.8Articulated Truck 315 4.2 350 4.7 1.3Average 2.45 3.2 0.75


20.6. The Member (Ops) introduced the proposal.

20.7. The GM (Ops) presented details stating that toll rates are

required to be revised after every three years according to a formula

approved by Executive Board (199th meeting of Nov 15, 2010) & endorsed

by National Highway Council (23rd meeting of Jan 11, 2011). Since the last

revision was carried out in Aug-2011, the next revision will be due in

2014.

20.8. The Secretary NHA however, clarified that the Board had,

subsequently, reviewed the matter (206th meeting of Aug 11, 2011) and

approved rationalization of toll rates within 10 months. The Board had

then also directed as follows, as recorded in Para-16.15 of minutes:-


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“16.15. After detailed discussion it was agreed that the

toll rates would be rationalized on yearly basis

preferably in a manner that the application is

ensured wef first of July each year and that toll

rates proposed for M-3 would be applied for M-1

& M-2 also.”

20.9. The VP-NESPAK endorsed this statement with remarks

that the issue was raised by him personally as toll rates in Pakistan

are lowest in the region and not commensurate with high operation &

maintenance cost.

20.10. The Chief (T&C) remarked that the rationale for revision of

toll rates and revenue impact of the proposed increase is not given.

20.11. The Chairman remarked that NH&MP in collaboration

with NHA is enforcing strict measures effective Apr 15, 2013 for check

on over-loading and, instead of fine, overloaded vehicles are not being

allowed to ply on national highways & motorways. Because of this,

NHA has received threats of strike by goods carriers association

particularly those transporting coal wef May 5, 2013. Any increase in

toll rates at this stage might not be well received, therefore, he would

request for approval, in principle, for the proposed toll rationalization,

for implementation at a later date.

20.12. The Chairman remarked that there is presently major

shortage of trucks in Pakistan and if the axle overload measures are

implemented in a harsh manner, the gap will widen and disturb

overall economic activity in the country.

20.13. The Chief (NTRC) remarked that the road users need to be

educated for any enhancement in toll rates, therefore, NTRC in

collaboration with NHA may carryout necessary study for proposed

rationalization before implementation.

20.14. The Secretary NHA remarked that since the last revision

of toll rates in Aug-2011, the prices of key construction material have

registered major increase while value of rupee has depreciated

considerably vis-à-vis US dollar and even the rationalization of toll

rates suggested for various categories of vehicles in Para-20.5 will not

be able to offset the cost impact. Nevertheless, rationalization of toll

rates to an extent; which is absorbed without a backlash is necessary.

Note. A table showing comparative status of variation in cost of key

construction material is at Annex-J.


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20.15. The Secretary NHA added that despite directions by the

Executive Board in Aug-2011 for yearly toll rates rationalization,

action to this effect was not taken in 2012 because of lack of political

will. The rates if revised now ie wef around May 5, 2013 might be

implemented without much fuss as media attention is focused on theforthcoming elections and the caretaker government has nothing at

stake with regard to backlash by transporters and goods carriers. The

elected government, which would be in position in Jun-2013, might

not like to venture into any action that is not well received publicly

right at the outset.

20.16. The AS (Fin) endorsed the above statement with remarks

that immediate rationalization of toll rates appears desirable.

20.17. The Members noted that revised toll rates for all kinds of

trucks on national highways have been suggested at a uniform rate

and this would not be acceptable to the truck owners:-

Truck Existing Proposed

a. 2 Axle 90 180

b. 3 Axle 90 180

c. Articulated 175 180

20.18. The Member (Operation) remarked that major

damage to NHA network is caused by 2 axle trucks and the aim is to

discourage these old vintage trucks from moving on to NHA network.

20.19. The Member (Plg) remarked that financial appraisal of this

matter needs to be carried out and, thereafter, realistic toll rates per

car unit calculated. This would imply major deviation from existing

toll categories, particularly for trucks / trailers.

20.20. The VP-NESPAK remarked that the road users are now

fully familiar with existing toll rates for various categories of vehicles

and any fiddling for change of categories might not be well received.

Toll rationalization should be on a set pattern while maintaining

existing ratio for each category as per past practice.

20.21. Matter was discussed and it was decided that NHA will

work out two or three options for rationalization of toll rates and

present a fresh working paper for consideration by the ExecutiveBoard in its next meeting.


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Decision

20.22. The Executive Board considered the working paper

seeking toll rates rationalization on national highways & motorwaysnetwork and directed NHA to work out two or three options and

present a fresh working paper for consideration by the Executive

Board in its next meeting.

20.23. The decision to review rationalization of toll rates after

three years stands modified and henceforth the rates will be reviewed

on yearly basis.


21. Agenda Item 17

Award of Works of Seven Contracts (NCB) Under

Force Account to FWO : Flood Emergency

Reconstruction Project (FERP)


21.1. Introduction/Source of Funding.

a. Pakistan has received a Loan Pak-2742 from Asian

Development Bank (ADB) towards the cost of Flood

Emergency Reconstruction Project (FERP).

b. Following projects are, inter-alia , included in FERP:-

NCB Section Road

i. S-15 Dharki – Panu Aaqil N-5

ii. N-17 Ramak – Peshawar, Pack-I N-55

iii. N-18 Ramak – Peshawar, Pack-II N-55

iv. N-19 Ramak – Peshawar, Pack-III N-55

v. S-3 Ubauro – Sanjarpur N-5

vi. N-10 Chakdara – Kalam, Pack-V N-95

vii. N-11 Chakdara – Kalam, Pack-VI N-95

viii. S-5 Kashmore – Kotri N-55

S : South N : North NCB : National Competitive Bidding


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21.2. Global PC-I of FERP.

a. Global PC-I based on DNA (Damage Need Assessment)

study conducted by NESPAK was presented beforeECNEC on May 26, 2011. ECNEC approved it, in

principle, with 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 being finalized for clearance by NHA

Executive Board before submission to CDWP.

21.3. Tendering Process.

a. NHA & ADB agreed to carry out procurement of

subject works on single-stage-two-envelopes basis inaccordance with ADB’s guidelines.

b. Escalation shall not be applicable on contracts

having 12 months or less duration. Being 9 months

project, escalation will not be applicable.

21.4. Package-wise Tendering Detail.

Section Road BidInvitation

DocumentsIssued

BidsReceived

BidOpening

i. Dharki – Panu Aaqil N-5 28-06-12 21 6 23-07-12

ii. Ramak – Peshawar, Pack-I N-55 01-06-12 10 1 26-06-12

iii. Ramak – Peshawar, Pack-II N-55 01-06-12 07 1 26-06-12

iv. Ramak – Peshawar, Pack-III N-55 01-06-12 06 2 26-06-12

v. Ubauro – Sanjarpur N-5 01-06-12 04 2 15-06-12

vi. Chakdara – Kalam, Pack-V N-95 24-05-12 14 5 13-06-12

vii. Chakdara – Kalam, Pack-VI N-95 24-05-12 14 3 13-06-12

viii. Kashmore – Kotri N-55 23-08-12 13 6 12-09-12


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21.5. Bid Evaluation.

a. After receiving ADB’s concurrence on Technical Bid

Evaluation Reports (TBERs), FWO emerged as the

only responsive and technically qualified bidder forall eight packages.

b. Financial bids were opened by the Bid Opening &

Evaluation (BO&E) Committee constituted in

accordance with NHA Code. Submitted price bids

were evaluated in detail in accordance with ADB’s

Standard Procedures.

21.6. Financial Evaluation.

Section Road Estimate * Evaluated Bid Variation

i. Dharki – Panu Aaqil N-5 923,497,023 1,488,431,736 +61.17%

ii. Ramak – Peshawar Pack-I N-55 429,659,479 657,509,467 +53.03%

iii. Ramak – Peshawar Pack-II N-55 566,036,004 883,031,166 +56.00%

iv. Ramak – Peshawar Pack-III N-55 503,320,678 727,422,910 +44.53%

v. Ubauro – Sanjarpur N-5 522,451,685 820,589,969 +57.07%

vi. Chakdara–Kalam Pack-V N-95 873,523,396 1,409,438,668 +61.35%

vii. Chakdara–Kalam Pack-VI N-95 719,432,667 1,158,967,801 +61.09%

viii. Kashmore – Kotri N-55 513,908,868 1,012,044,076 +96.93%

* Engineer’s estimates based on CSR 2009+ 9.1%

21.7. Eligibility of FWO.

a. ADB conditionally technically qualified FWO in all

packages as its eligibility (legal & financial autonomy) as

per the Bank remained under debate. Bid evaluation

of one sub-project (Kohala Muzaffarabad, ICB-N-03)

revealed that FWO avails tax exemption from GoP.

b. Multiple cycles of correspondence were followed by

meetings involving NHA, FWO and ADB in the last

quarter of 2012. FWO asserted that tax exemption

status does not limit their financial / legal autonomy

and it fulfills the requirement of being a legally and

financially autonomous SOE (State Owned Enterprise).


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c. Documentary evidence furnished by FWO was not

considered cogent by ADB; which, on Jan 15, 2013,

disqualified FWO for not fulfilling eligibility criteria of

ADB’s procurement guidelines (Para 1.8c). ADB also

did not consider FWO as legally autonomous to theborrower & treated it as a government agency (SOE).

21.8. Force Account Method of Procurement.

a. As procurement process by that time had already

entered financial bid opening & evaluation stage,

ADB suggested that FWO (single bidder) may be

considered eligible as a “Force Account” unit under

ADB guidelines (Para 3.8).

b. NHA requested ADB’s formal concurrence to use

“Force Account” method of procurement for entering

into contract with FWO.

c. ADB, on Feb 18, 2013, sought a detailed proposal on

NHA’s recommendations and suggested that rates

may be negotiated with FWO on contracts where the

bid exceeded NHA’s CSR-2011 by more than 10%.

21.9. Justification. As per ADB’s procurement guidelines 2010

(Para 3.8) “Force Account” viz construction by use of borrower’s own

personnel and equipment, may be the only practical method for some

works. Use of “Force Account” may be justified if:-

a. Quantities of work involved cannot be defined in

advance.

b. Works are small and scattered or in remote locations

for which qualified construction firms are unlikely to

bid at reasonable prices.

c. Work is required to be carried out without disrupting

ongoing operations.

d. Risks of unavoidable work interruption are betterborne by the borrower than by a Contractor.


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e. There are emergencies needing prompt attention.

f. A government-owned construction unit that is not

managerially and financially autonomous shall beconsidered a “Force Account” unit otherwise known

as direct labor, departmental forces, or direct work.

21.10. Fulfillment of Force Account Pre-requisites & Negotiation.

a. Sub-Paras (b) & (e) above relate to prevailing

circumstances on the project.

b. Though the projects are not small in size, works onall eight packages have no geographical proximity.

Three are located in Upper Sindh, three in Southern

KPK and two in Northern KPK. Due to far flung

locations and huge variation in geological terrain

(plain, rolling and mountainous) and also law & order

situation in some areas, competition remained

lukewarm despite NHA’s best efforts.

c. In some other packages in same area eg NCB-N-12 &

13, Chakdara Kalam Bridges, Packs-I & II, the lowest

evaluated bid was +120% the estimated cost (CSR

2009+9.1%) and bidding process annulled.

d. FWO remained the only bidder that expressed

interest in all the works. NHA scrutinized &

evaluated the matter in detail to establish FWO’s

technical and financial capacity to deliver.

e. Concern on too high a price was mitigated and

brought to an acceptable level through negotiation.

21.11. NHA’s Proposals. P&CA Section, on ADB’s requirement,

forwarded a detailed proposal on Mar 1, 2013 to consider following

four projects under “Force Account” provisions. These projects fall

within the permissible limit of ADB ie +10% the estimate based on

CSR-2011.


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NCBProject

Name

Submitted

Bid (Rs)

Estimate

(CSR 2009+9.1%)

Final Bid

(Rs)

Variation(1)

Variation(2)

N-17Ramak- Peshawar

Pack-I 657,509,467 +53.03% 566,635,467 31.88% 3.98%

N-18Ramak- Peshawar

Pack-II883,031,166 +56.00% 764,149,166 35.00% 6.30%

S-3 Ubauro-Sanjarpur 820,589,969 +57.07% 730,909,907 39.90% 7.45%

S-15 Dharki-Panu Aaqil 1,488,431,736 +61.17% 1,291,999,736 39.90% 7.53%

(1) Variation vis-à-vis estimates based on CSR 2009+ 9.1%

(2) Variation vis-à-vis estimates based on CSR 2011

21.12. Remaining 4 x Packages.

a. Remaining four packages were taken-up afresh but

FWO on Mar 12, 2013 refused further discount.

b. NHA re-deliberated the available discounted bid

prices considering that CSR-2011 rates are also 1½

year old, uncertain security situation of project area,

non-availability of price adjustment clauses in

bidding documents, cumulative discount of sub-

packages and corresponding overall bid price of a full

package with respect to the Engineer’s estimate.

c. NHA finally recommended following three projects as

well for ADB’s consideration under “Force Account:-

NCBProject

Name

Estimate(CSR 2009+9.1%)

Evaluated

Bid (Rs)Negotiated Bid

Final (Rs)

Variation(1)

Variation(2)

N-19 Ramak-Peshawar

Pack-III503,320,678 727,422,910 727,422,910 +44.53% +14.45%

N-10 Chakdara-Kalam

Pack-V873,523,396 1,409,438,668 1,266,608,924 +45.00% +25.52%

N-11 Chakdara-Kalam

Pack-VI719,432,667 1,158,967,801 1,043,175,827 +45.00% +25.53%

(1) Variation vis-à-vis estimates based on CSR 2009+ 9.1%

(2) Variation vis-à-vis estimates based on CSR 2011


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21.13. NCB-S-05. Kashmore - Kotri processed for annulment on

account of exorbitant bid price vis-à-vis rates of CSR- 2011. ADB’s

response on both the above proposals is awaited.

20.14. Recommendation. NHA Executive Board is requested to

accord approval for awarding seven projects discussed in Paras21.11

& 21.12 to FWO under “Force Account” as per ADB’s procedure and

guidelines. This shall be subject to final formal concurrence by ADB.




21.16. The Member (Plg) stated that scrutiny of documents & bid

evaluation reports consumed a considerable length of time meaning

thereby that hardly any space was left for a fresh procurement process

and completing construction activities within the limited time left

before expiry of loan period. It was in this context that ADB allowed

NHA to conduct negotiation with FWO for lowering of rates, as

permitted under ADB guidelines.

21.17. The AS (Fin) remarked that foreign funded projects are

guided by the terms & conditions concluded in the loan agreement

and in case of any conflict with GoP rules / regulations, guidelines

provided by donors prevail.

21.18. The Member (Plg) added that before negotiations with

FWO, to be on safe side, NHA also sought necessary clarification from

PPRA; which was received. Negotiations with FWO could not have

been successful but for the cooperation extended by the DG (FWO).

21.19. The Chairman stated that deliberations held with FWO for

bringing down cost included three meetings conducted by him with

DG (FWO) and one at the level of the Secretary MoC (PAO).

21.20. The VP-NESPAK pointed out that the negotiated bids for

Packs-V & VI of Chakdara - Kalam Road are more than 25.50% the

estimated cost based on CSR-2011 and appear too high and specificreasons need to be put on record for recommending these bids.


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21.21. The Member (Plg) clarified that bids are driven by ground

realities and market dynamics. These two packages are located in a

difficult terrain where security situation is not that conducive. ForPacks-I & II of Chakdara-Kalam, civil Contractors offered bids +120%

the estimated cost based on CSR-2009+9.1%. The ADB wanted NHA

to negotiate but NHA responded that the variation is too high and

negotiation is not likely to bear fruit.

21.22. The Member (Plg) added only FWO is in a position to

deliver in this area but despite hectic persuasion they refused to offer

any further discount. However, variation for two bids for Packs-V & VI

of Chakdara - Kalam will come down further if compared with CSR-2013, which is in final stage of compilation and will be presented for

approval before the next Board meeting. He stated that in the wrap-up

session, ADB authorized NHA to place the matter before the Executive

Board and gave an understanding that after Board’s clearance, the

Bank will accord necessary concurrence.

21.23. The JS (MoC) observed that length of various packages

proposed to be awarded to FWO is not mentioned. The requisite info is

given below:-

NCB Project Km

N-17 Ramak - Peshawar, Pack-I 60

N-18 Ramak - Peshawar, Pack-II 100

N-19 Ramak-Peshawar, Pack-III 196

S-3 Ubauro - Sanjarpur 10

S-15 Dharki - Panu Aaqil 32

N-10 Chakdara-Kalam, Pack-V * 8

N-11 Chakdara-Kalam, Pack-VI * 7

Note. * Works include culverts and retaining walls for flood protection.

21.24. Matter was discussed and cleared with remarks that this

case will not be quoted as a precedent in terms of consideration with

respect to cost (above or below).


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Decision

21.25. The Executive Board approved award of following seven

projects to FWO under “Force Account” method as per ADB’s

procedure and guidelines:-

NCB ProjectNegotiated Bid

Price (Rs)Variation *

N-17 Ramak - Peshawar, Pack-I 566,635,467 3.98%

N-18 Ramak - Peshawar, Pack-II 764,149,166 6.30%

N-19 Ramak-Peshawar, Pack-III 727,422,910 14.45%

S-3 Ubauro - Sanjarpur 730,909,907 7.45%

S-15 Dharki - Panu Aaqil 1,291,999,736 7.53%N-10 Chakdara-Kalam, Pack-V 1,266,608,924 25.52%

N-11 Chakdara-Kalam, Pack-VI 1,043,175,827 25.53%

* Variation vis-à-vis estimates based on CSR-2011

21.26. The above decision is subject to final formal concurrence

by ADB and completion of codal formalities.


22. Agenda Item 18

PC-I for Technical Assistance for Implementation of

Bridge Management System in NHA Through JICA


22.1. Background/General Description.

a. Roads are now the backbone of Pakistan’s transportsector with ever increasing reliance on road

transportation. Pakistan’s road network plays an

important role in integrating the country, facilitating

economic growth and reducing poverty.

b. Pakistan has a road network covering +260,000 km,

including around 12,000 km national highways

carrying over 96% of inland freight and 92% of

passenger traffic despite being only 4.5 % of Pakistan’s total road network.


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c. NHA network also plays a major role in all‐weather

reliability, reduced transportation costs and

increased access to markets for local produce and

products, access to new employment centres,

employment of local workers on projects, betteraccess to health care and other social services,

strengthening of local economies, etc.

22.2. Maintenance of NHA Network.

a. For continuous & quality maintenance, rehab, up-

gradation and preservation of this precious highway

asset, NHA prepares an yearly Annual Maintenance

Plan (AMP) based on available resources. Pavement

condition & road roughness survey of the entire

national highway/ motorway network is conducted

followed by strategy analysis to define maintenance

funding needs.

b. NHA network includes about 5,500 bridges and

16,000 culverts. Bridges require frequent maintenance

and repair to keep them functional throughout the

service life, as their failure can cause excessive public

and private losses. Due to financial constraints and

old age of majority of bridges, decisions on

prioritization for repair & selection of appropriate

method is of paramount importance.

c. While approving AMP 2009-10, the Executive Board

(174th special meeting of Jul 4, 2009) instructed that

creation of a separate fully equipped/trained Bridge

Inspection/ Maintenance Unit be considered to look

after the most valuable asset of NHA.

22.3. Bridge Management System (BMS).

a. BMS was developed in 2006 but based on visual

inspection depending largely on experience and

engineering judgment of the bridge inspector and

this is prune to inaccurate damage assessment.

Training for engineers, updation of bridge inspection

guidelines and use of Non Destructive Testing (NDT)is required for improved BMS.


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b. To overcome these deficiencies, NHA proposed

technical assistance from Japan for providing on-

the-job training (OJT). For evaluation and damage

assessment of bridges, JICA was requested to also

provide NDT equipment.

22.4. Record of Discussion & Minutes of Meeting with JICA.

a. NHA/GoP requested Govt of Japan to implement the

project for NHA to utilize BMS more effectively.

b. JICA dispatched “first detailed planning survey

team” headed by Dr Nobuyuki Tsuneoka, Senior

Advisor for Traffic & Transportation (May 14 to 18,2012) and second team headed by Ms Aya Shimada,

Dy Assistant Director of Economic Infrastructure

Department from JICA HQ, Tokyo (Jul 3 to 18, 2012).

c. Based on understanding reached between JICA

teams, NHA and authorities concerned, minutes of

meetings were signed on May 18 and Jul 18, 2012.

22.5. Proposed Project Iimplementation Activities.

a. Establish BMS at Head and Regional Offices.

b. Provision of inspection equipment such as Under

Bridge Inspection Unit and NDT Equipment with

operational training through JICA grant.

c. Updation of Road / Bridge Inspection Guidelines

along with detailed specifications and procedures of

appropriate repair methods.

d. Devise policies/plans for sustainability and

robustness by continuous bridge inspections and

updation of BMS data by Regional Offices.

e. Subsequent OJT for inspection of bridges to NHA

engineers at Head/Regional Offices and MaintenanceUnits level.


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f. Arranging training in Japan & Pakistan for capacity

building of NHA engineers working for development

of BMS.

g. Provide BMS data to help NHA prepare effective AMP

for bridges/structures.

22.6. Cost Summary.

a. JICA Grant. US$ 2.5 million = Rs 244 million @ 1

US$ = Rs 97.6 (for expenditures of JICA experts, equipment

procurement & training).

b. NHA Share. Rs 32 million from Road Maintenance

Account (for administrative, surveying, vehicle, transportation,

outsourcing of activities not included in JICA grant).

Note. NHA’s share for each year shall be borne through RMA after obtaining approval of AMPs from Executive Board.

22.7. Financing Plan.

F/Year Local(Rs in M)

FECUS$ in M

a. 2013-14 12 1.0446

b. 2014-15 15 0.9696

c. 2015-16 (1) 5 0.4858

d. Total 32 2.5

(1) 1st & 2 nd Quarters

22.8. PSDP 2012-13 Allocation. Nil.

22.9. Executive Board’s Earlier Decision.

a. Executive Board directed (174th special meeting of Jul 4,

2009) creation of a separate fully equipped / trained

Bridge Inspection / Maintenance Unit to look after

bridges while also expediting procurement of Under

Bridge Inspection Equipment / Machinery.


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b. Executive Board recommended (184th meeting of Jan 4,

2010) concept clearance and later (204th meeting of May

14, 2011) PC-II for approval by CDWP.

22.10. Recommendations of TWP-I (12th meeting of Mar 13, 2013).

a. TWP-I considered the PC-I for project titled

“Technical Assistance for Implementation of Bridge

Management System in NHA” costing Rs 276 million

(including JICA grant of FEC US$ 2.5 million) and

recommended it for approval by CDWP subject to

incorporation of various suggestions proposed.

b. TWP-I recommended creation of Bridge ManagementUnit with following manpower for approval by

Executive Board:-

Category Post

1. Project Director/ Member (Operation) Exists

2. Project Manager/ Director (RAMS) Exists

3. Project Coordinator/ DD (BMS) 1

4. Assistant Project Coordinator/ AD (BMS) 2

5. Surveyor 2

6. Driver 37. Naib Qasid 2

Total Staff 10

22.11. Proposal. The Executive Board is requested to:-

a. Recommend the PC-I for technical assistance for

implementation of “Bridge Management System”

costing Rs 276 million (including JICA grant of FEC

US$ 2.5 million) for approval by CDWP.

b. Approve creation of Bridge Management Unit with

requirement as stated in Sub-Para-22.10(b) above.



(Ops) presented details.



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Decision

22.14. The Executive Board rrecommended the PC-I for technical

assistance for implementation of “Bridge Management System” costingRs 276 million (including JICA grant of FEC US$ 2.5 million) for approval by

CDWP.

22.15. The Board also approved creation of Bridge Management

Unit with the requirement as stated in Sub-Para-22.10(b) above.

Action By : Member (Operation) & Member (Planning)

23. Farewell for Outgoing Board Members

23.1. The Chief (T&C) pointed out that the respectable Members

of NHA Executive Board are posted out as a matter of service norm.

While in position, they make valuable contribution for improvement of

NHA’s working system through qualitative decision making having

long term bearing. However, there is no system for formal

acknowledgement of services rendered by such distinguished

Members contrary to the traditions followed by other major public

sector organizations.

23.2. The Chief (T&C) proposed that NHA should formally dine

out the outgoing Board Members. A letter of appreciation should also

be issued by the Chairman NHA on behalf of the Board.

23.3. The resolution was appreciated & unanimously adopted.

Action By : Secretary NHA & Member (Admn)

24. Conclusion

24.1. The Chairman wrapped up the meeting by thanking the

Board Members for their active participation and useful input.

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EXTRACTS

CONFIRMED MINUTES OF THE

227TH EXECUTIVE BOARD MEETING

APRIL 29, 2013 AT ISLAMABAD