231-executive board meeting of nha

8/9/2019 231-Executive Board Meeting of NHA

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NHA Executive Board’s Confirmed Minutes

NATIONAL HIGHWAY AUTHORITYSecretariat Section

CONFIRMED MINUTES

Subject: 231st Meeting of the NHA Executive Board held on Dec

17, 2013 at Islamabad

1.

Introduction

1.1. The 231st meeting of the Executive Board of the National

Highway Authority was held at 1030 hours on Dec 17, 2013 at the

NHA Head Office Auditorium, Islamabad. Mr Maroof Afzal, Chairman

NHA presided.

1.2. All Members attended except Mr Raja Nowsherwan,

Member (Planning) NHA being on sick leave. List of participants is at

Annex-A.

1.3. The meeting commenced with recitation of verses from theHoly Quran and Urdu translation.


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Item Noa. Secretariat /Confirmation of minutes 2

b. Planning 8

c. Construction/Aided Projects 5

d. BOT/PPP 1

e. Finance 2

f. Operation 1Total 19

4. Agenda Item 1

Confirmation of Minutes - 230th Meeting of the

Executive Board Held on Sep 17, 2013

4.1. The Secretary NHA solicited confirmation of minutes of

the 230th Executive Board meeting held on Sep 17, 2013. Comments

/ observations from Mr Munir Ahmed Anjum, Chief (T&C) Planning

Commission received vide letter No 4(67-24)/PC/T&C/2013 dated Dec

16, 2013 were presented before the Board for information, discussion

& decisions. After deliberations the Board agreed to the saidobservations for insertion in the confirmed minutes of meeting.

4 2 I l d b h Chi f (T&C) h i l


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4.5. After detailed deliberations it was decided by the Boardthat all NHA Members should remain within NHA’s premises during

Board meeting so that they should be readily available whenever

required by the Board.

4.6. Minutes were accepted for confirmation.

Decision

4.7. The Executive Board confirmed minutes of 230th meeting

held on Sep 17, 2013 with following amendments:-

a. In Agenda Item 16 “Withdrawal of Induction/

Absorption of Syed Imran Qadir Gilani as Director(Amin, BS-19) in NHA” Para-18.3 may be rephrasedas follows:-

For: The Chief (T&C) stated that, case forinduction of officer was brought before theBoard thrice. The reasons mentioned for

review of earlier decision were required tobe scrutinized before submission of caseto the Board.


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b. In Agenda Item 17 “Creation of 3x Supernumerary(Temporary) Posts of GMs (Engr, BS-20)” Para-19.4

may be reworded as follows:-

For: The Board deliberated and recommended

the proposal to NHC.

Read: The Board deliberated and recommended

the proposal to NHC (if it was in the

competency of NHC).

c. In Agenda Item 19 “Request for Job in NHA against

“Deceased Quota”: Mr Muhammad Nawaz S/o Ali

Nawaz, Ex-Driver of NHA”

i. Para-21.2 may be redrafted follows:-

For: ------ Chief (T&C) was of the view that the

item may not be withdrawn, but should be

discussed later on along with other similartypes of cases for decision.

Read: Chief (T&C) was of the view that the


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5. Agenda Item 2

Amendment in NHA (Meetings of Executive Board)

Regulations, 2003

Proposal

5.1. NHA (Meetings of Executive Board) Regulations, 2003,approved by the Executive Board (10th meeting of Apr 24, 2003) prescribeprocedure for conducting the Board’s business. Clause-20 of theseregulations deals with circulation of minutes, as follows:-

a. A copy of the minutes (proceedings) of every meeting, dulysigned by the Chairman of the meeting, shall be

circulated by Secretary/Deputy Secretary as soon aspossible after the meeting.

b. The minutes shall be circulated among all the Members.

c. The minutes so circulated shall be again signed by theChairman at the next (succeeding) meeting after final

adoption by the Board, with amendments or otherwise, asthe case may be.

d The finally adopted minutes shall be circulated afresh


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5.4. The Chairman explained that under existing procedure

decisions of the Executive Board do not become actionable until &

unless they are confirmed by the Board in its succeeding meeting. The

Board meetings are often delayed due to one or other unavoidable

reasons. This situation holds important proposals under suspension

and causes delays in their implementation that may range upto three

months in extreme cases. Thus, essence of the Board decision is not

timely realized.

5.5. The Additional Secretary (Finance) opined that there is no

hurdle in accepting the proposal. The Board Members also agreed to

the suggestion. However, the Chief (T&C) remarked that proposals of

important nature that require immediate processing may be

earmarked at the time of discussion so that the Board Members are

fully cleared and satisfied about what is going to be implemented.

5.6. The Board deliberated and cleared the proposal.

Decision


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6. Agenda Item 3

Revised PC-I for Construction of Sultan Bahoo Bridge

Across River Chenab Linking Shorkot and Garh

Maharaja

Proposal

6.1. The NHA Executive Board is requested to recommend the

Revised PC-I for Construction of Sultan Bahoo Bridge across River

Chenab Linking Shorkot and Garh Maharaja costing Rs 4,354.28

million to CDWP / ECNEC for approval.

Deliberation

6.2. The Project Director presented the details.

6.3. The VP-NESPAK observed that the original PC-I was notbased on hydraulic model study. He added that it has been noticed

that PC-Is are often prepared without conducting proper hydraulic

d l d th d t il d t di Thi ti t l lt i


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6.5. The Chief (T&C) observed that traffic volume on

Hasanabdal - Havelian Expressway (E-35) is more than this project;

why pavement thicknesses on this project is more than E-35? He

added that design be reviewed and pavement thickness be checked as

compare to E-35. He pointed that nomenclature of the project be

checked and accordingly mentioned in the revised PC-I.

6.6. The VP-NESPAK opined that the revised pavement

thickness seem reasonable and acceptable.

6.7. The Chairman ensured that the proposal would be

referred to CDWP / ECNEC after requisite design review under

intimation to the Board.


Note: The GM (Planning) clarified that pavement thicknesses of Sultan Bahoo Bridge

have been checked, scrutinized and found appropriate.

Decision


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Deliberation

7.2. The Director (ADB) presented the case.

7.3. The Additional Secretary (Finance) asked about reasons

for increase in the cost of project. The Director (ADB) explained major

reasons as under:-

a. The Engineer’s Estimates amounting to Rs 874.70

million for the projects were worked out on the basis

of NHA- CSR (Sep-2006). The contracts were awarded

in Oct-2009.

b. Re-designing of the projects due the damages causedby floods of Jul-2010.

c. The works executed under “day works” in the interest

of projects for emergency restoration of traffic after

flood damages.

d. Revised costs inclusive of all contractual claims,

price adjustments, updated cost of civil works of all


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b. NHA will also seek ADB’s concurrence for inclusion

of minimum works required to safeguard the already

executed and balance works costing Rs 636 million.

c. NHA will vigorously pursue with ERRA and impress

upon them to expedite submission of revised PC-I of

Rs 1,466 million pending with them for quite some

time to the Planning Commission.

7.6. The Senior Joint Secretary (MoC) suggested that

implementation status on decisions of 216th meeting be seen and

Board be informed accordingly.

7.7. The Board was informed that ERRA was time & again

pursued in this regard. Recently, NHA requested vide letter No 3(26)M

(AP)/NHA/2013/444 dated Sep 6, 2013 to process the revised PC-I toPlanning Commission for soliciting approval since NHA was the

executing agency only, whilst the project was implemented by ERRA


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c. Keeping in view and the earlier request made videour letter No ERRA/2-4/2012/SPC dated Aug 26,

2013, it will be appropriate and prudent in the best

interest of this National Highway Road that case for

its PC-I (Revised) for complete scope of work, be

taken up by NHA and processed through Planning

Commission with intimation to ERRA.


Decision

7.9. The Executive Board recommended the revised PC-I for

widening and improvement of Alpuri - Besham Road Project (N-90)costing Rs 3,090.087 million to CDWP / ECNEC.

Action By : Member (Planning)

8. Agenda Item 5

Amended PC-I for Improvement & Widening of Jaglot-

Skardu Road, S-I (163.821 Km)

Proposal


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a. Whether it is necessary to assign the project toChinese firm or GoP can execute it; wherein it was

apprised that EXIM Bank of China extends loan for

only those projects which are to be undertaken by

the Chinese firms. The loan would be negotiated by

EAD. It was also discussed that the Planning

Commission is the authority which can confirm the

availability of funds with GoP.

b. Is it feasible / possible to link this project with

Economic Corridor Packages? It was apprised that

Jaglot - Skardu Road Project does not fall on the

alignment of Economic Corridor. This project and

Economic Corridor are to be financed by the EXIMBank of China; it is therefore upto the Planning

Commission and EAD to decide.

8.5. The Board deliberated and desired that comparison of

costs as offered by Chinese firm and the Engineer’s Estimate worked

out by NHA itself be presented in next meeting.

Decision


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Total Cost: The total revised cost of the project including all

components is Rs 19,951 million.

i. ADB Share: Rs 4,470 million (incurred up to loan closing onAug 31, 2010)

ii. GoP Share: Rs 5,997 million (including Rs 4,532 millionalready incurred & balance Rs 1,456 million to be

incurred)

iii. USAID Share: Rs 9,484,million (to be incurred)

Deliberation

9.2. The General Manager (Balochistan), Quetta made detailed

presentation.

9.3. The VP-NESPAK inquired about the additional works for

revision of cost. The GM informed about details of additional works


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9.5. The Chief (NTRC) suggested that installation of pedestrian

bridges need to be properly surveyed to identify appropriate places for

the purpose. He offered services of NTRC for this survey and designing

the bridges. The Chief (T&C) supported the above version and

recommended assignment of said job to NTRC.

9.6. The Chief (T&C) pointed out that the cost of revised PC-I

is different from that presented in the Technical Working Party (TWP)

meeting. NHA may check and correct accordingly. He also suggested

that in future minutes of TWP meeting be made part of such working

papers.


Decision

9.8. The Executive Board recommended the revised PC-I of

Kalat - Quetta -Chaman Road Project (N-25) costing Rs 19,951 million

(ADB Share: Rs 4,470 million, GoP Share: Rs 5,997 million, USAID

Share: 9,484 million) for approval by CDWP/ECNEC and execution of

remaining and additional works by FWO on single tender basis at


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10.3. The Chairman briefed the Board about background &

importance of the route and discussions along with the Secretary

Communications with the Asian Development Bank (ADB).

10.4. The VP-NESPAK made a query whether PC-I for this road

is prepared on 4 or 6-lane basis?

10.5. The Chairman explained that NHA’s loan negotiations

with ADB are underway and ADB has expressed its willingness to

provide the funds only if the road is constructed as 4-lane. A Periodic

Financing Request for US$ 315 million was forwarded to ADB through

EAD. ADB intimated only US$ 200 million are available for the project

(Package I & II) during 2013 and the balance amount for Package-III

will be processed in 2014. However, there is a policy decision of the

Prime Minister to develop this road with 6-lane facility. A summary in

this regard has been moved to the Prime Minister’s Office for decision.

10.6. The Chief (T&C) suggested that the agenda may be held in

abeyance till decision of the summary from Prime Minister is received.


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11. Agenda Item 8

Award of Works: Construction of Peshawar Northern

Bypass

Proposal

11.1. The Executive Board is requested to accord approval for

award of the works for Construction of Peshawar Northern Bypass,

Package-II: Charsadda Road to Warsak Road-11 Km (Km 7+600 – Km

19+500) to the lowest evaluated bidder i.e. M/s Riaz Malik

Construction Company and M/s China Liaoning International

Economic & Technical Cooperation Group Corp. Ltd. (Joint Venture),M/s RMC – CLIC JV at bid price of Rs 4,405,621,229, which is 1.08%

above the Engineer’s Estimate (Rs 4,358,618,689.48) based on CSR-

2011 + 15% premium.

Deliberation

11.2. The General Manager (P&CA) made detailed presentation.

11 3 The Board deliberated and cleared the proposal


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12. Agenda Item 9Construction of Highway Research & Training Centre

(HRTC): Request for Provision of Funds of Rs 340

Million for Acquisition of Land Measuring 2176

Kanals and 17 Marla

Proposal

12.1. The Executive Board of NHA is requested to approve an

additional estimated amount of Rs 340 million from NHA Road

Maintenance Account (RMA) for completion of land acquisition process

for Highway Research & Training Centre (HRTC).

Deliberation

12.2. The Pavement Specialist NHA presented the case.

12.3. The Additional Secretary (Finance) and the VP-NESPAK

opined that establishment of Highway Research & Training Centre

(HRTC) is an important move by NHA, however, there is a need to

devise a result oriented program in the field of highway research &training. HRTC should conduct country wide research in road sector.

12 4 Th IG (NH&MP) hi hli ht d th t th h i d


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12.7. The VP-NESPAK inquired whether NHA is in position to

release the funds through Road Maintenance Account (RMA)? The

Member (Finance) explained that utilization of RMA funds needs to be

revisited in the light of present scenario where PSDP funds are

released project-wise and no provision is made for unfunded &

completed projects. Re-appropriation of funds from one project to

another has to be approved by the P&D Division. He was of the view

that very essential & obligatory expenditures like payments on

account of court cases and long outstanding land compensation

should also be made eligible from RMA funds.

12.8. The Chairman updated the Board that he has received

non bail-able warrants from the court in case of a land compensation

pertaining to M-2 projects. Due to non availability of PSDP funds,

compensation to some of the land owners could not be made. Under

this situation he has no option but to make the payment from RMA.

12.9. The Member (Finance) suggested that RMA should provide

for some amount for such cases. The Additional Secretary (Finance)endorsed the proposal of Member (Finance) and suggested that at

least a remarkable amount should be provided in the current years


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13. Agenda Item 10

NHA’s Composite Schedule of Rates (CSR)-2013

Proposal

13.1. The Executive Board (229th meeting of Jul 9, 2013) considered

the working paper on NHA’s Composite Schedule of Rates (CSR)-2013and decided as follows:-

a. NHA CSR-2013 shall be re-presented incorporating

GST and other recent price hikes in fuel etc. after

three months.

b. Meanwhile, 15% premium over NHA CSR-2011 shall

be applicable for preparation of project estimates,

PC-I and Bid evaluations till the approval of CSR-

2013.

13.2. Keeping in view the above decision, further increase in

input rates of basic materials & current bidding trend, the Executive

Board is requested to approve the following two recommendations:-


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13.4. The GM (Design) also presented the details of biddingtrends of the bidders during the year 2013 by providing comparison of

bid amount and engineer’s estimates based on CSR-2011+15% and

CSR-2013. It was highlighted that bid amount of seven (7) projects

tendered during 2013 was 12% above Engineer’s estimates of CSR-

2011+ 15% and 9% below that of CSR-2013 as shown in Annex-E.

13.5. The Chief (T&C) opined that prevailing CSR rates

influence the bidding trends of the Contractors. Thus revision /

increase of rates through implementation of CSR-2013 would create

tendency among the bidders to quote bids with higher rates.

Therefore, keeping in view the bidding trends of 2013, it seems

reasonable that implementation of CSR-2013 may be withheld for

more couple of months. The VP-NESPAK supported the version and

sought recommendations of the GM (Design) in this regard. The GM

(Design) viewed that since estimates of CSR-2011+15% are at par with

the bid amounts quoted by the bidders during current year, therefore,

CSR-2013 may be implemented after March-2014.

13.6. The Board agreed and cleared the proposal forimplementation of CSR-2013 from April 1, 2014 and it may be called

as CSR-2014.


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14. Agenda Item 11

Addendum-14 for Consultancy Services by M/s SMEC

& Associates for Kalat-Quetta- Chaman Project (N-25)

Proposal

14.1. The Executive Board is requested to approve Addendum

No 14 of M/s SMEC & Associates for an extension in the period of

Consultancy Services on Kalat - Quetta - Chaman Road Project (N-25)

by 5 months, upto Mar 31, 2014 and additional cost of Rs

9,720,609/= (Rupees nine million, seven hundred twenty thousand, six hundred

and nine) only, over and above the cost of Consultancy Servicesapproved upto Oct 31, 2013 (Addendum No 13).

Deliberation

14.2. The General Manager (Balochistan) presented the case.


Decision


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15. Agenda Item 12

Variation Order 16-12 of FWO for Repair of Flood

Damaged Works at Balakot S-Bound: Basian-Balakot-

Naran Section, N-15

Proposal

15.1. The Executive Board is requested to accord approval of

the Variation Order No 16-12 of FWO for Repair of Flood Damaged

Works at Balakot S-Bound: Basian-Balakot-Naran Section (N-15)

costing Rs 317,811,627/= bringing the revised contract cost to Rs

3,519.89 million.

Deliberation

15.2. The General Manager (NHIP) presented the case.

15.3. The Chief (T&C) desired that cost of VO should not be

over & above the cost of PC-I.

15 4 The Board agreed with the view point of Chief (T&C) and


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16. Agenda Item 13

Addendum-2 of M/s Associated Consultancy Center

(ACC) for Construction Supervision: Rehabilitation of

Kamber - Shahdadkot Road Project

Proposal

16.1. The NHA Executive Board is requested to accord approval

of Addendum-2 costing Rs 18,870,314/=, entailing extension in

services of M/s Associated Consultancy Center (ACC) from Jun 20,

2011 to Oct 16, 2013 for construction supervision and accountfinalization for Rehab of Kamber - Shahdadkot Road Project.

Deliberation

16.2. The Director (Construction-South) presented the case.


D i i


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17. Agenda Item 14

Revision of “Factor-C” for Price Adjustment on

Construction of Shah Jeewna Bridge over River

Chenab, District Jhang

Proposal

17.1. The Executive Board is requested to approve the revision

of “Factor-C”, in context of Appendix “C” to the Bid for the contract of

Construction of Shah Jeewna Bridge across River Chenab at Chund

District Jhang having cost effect of Rs 17,663,851/- against original

“Factor-C”, as a Contractor’s claim.

Deliberation

17.2. The Director (Construction-North) presented the case.

17.3. The VP-NESPAK opined that NHA should be careful while

processing proposals soliciting price adjustments through revision of Factor-C as variations in rates of input materials are also covered

through payment of escalation. Thus, revision of Factor-C may involve


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18. Agenda Item 15Revised Addendum-15 of M/s EA Consulting (Pvt) Ltd

for Construction Supervision of Lyari Expressway

Project

Proposal

18.1. The Executive Board is requested to accord approval of Addendum No 15 (Revised) to M/s EA Consulting (Pvt) Ltd for

construction supervision of Lyari Expressway Project costing Rs

49,945,839/=, increasing the revised contract cost to Rs

199,845,629/=, which is 214% above the original contract and 33%

above the approved revised cost of Rs 149,899,790/= as per

Addendum No 15 consisting extension of time from Jan 1, 2010 to

Dec 31, 2013 and the related cost along with the cost of design for re-

aligned elevated stretches of Northbound Carriageway.

Deliberation

18.2. The Director (Construction-South) presented the case.

18.3. The Chief (T&C) raised the following observations:-

a Does contract allow re rating and who is competent


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19.Agenda Item 16Construction of Habibabad Flyover on NationalHighway (N-5) on Built-Operate-Transfer Basis

Proposal

19.1. Following decisions are solicited from NHA Executive

Board:-

a. The enclosed “Draft Concession Agreement” may be

approved for signing with M/s Habibabad Operation

and Management Engineering Company (Pvt) Ltd (the

Concessionaire) for “Construction of Habibabad

Flyover, on National Highway (N-5) on Build-Operate-

Transfer basis.”

b. Approval may be accorded to hand over Pattoki Toll

Plaza to Concessionaire, within four (04) weeks of

signing of Concession Agreement, under the same

terms and conditions as it is being operated by the

existing toll operator, to facilitate the Concessionaire

to undertake installation of electronic tolling system

and completion of other required facilities during

t ti i d Thi i l i it t


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19.3. The VP-NESPAK opined that the concession should have

been considered for twenty (20) years with 6-lane flyover facility

instead of 4-lane. The Chairman explained about the utilization of

N-5, which is mostly connecting and passing through cities, hence 4-

lane flyover will be enough. As far as period of concession is

concerned, the cost has been worked out on 10 years basis, the Board

may consider the case accordingly.

19.4. The Additional Secretary (Finance) asked about the

criteria of bids evaluation and benchmark for sharing financing

Contractor and NHA. The Board was informed that the sharing has

been worked out on the basis of commercial feasibility study

conducted by IPDF.

19.5. The VP-NESPAK inquired whether cost analysis has been

done through comparison of estimates on public & private basis to see

the benefit of project on BOT basis or if it is done through public

sector by NHA itself. The Member (Finance) explained that collection

by NHA is lesser than the amount proposed by FWO / JV. The VP-

NESPAK desired that public sector comparative must be the part of

BOT proposals in future.

19 6 The Member (Finance) pointed out that M/s Muhammad


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19.8. The Chairman inquired that whether the case be

forwarded to CDWP? The Chief (T&C) clarified that NHA Executive

Board is the competent forum for approval of PPP projects.

19.9. The Board Members appreciated the efforts made by the

NHA’s PPP team in materializing the PPP projects and desired that

more projects on PPP be initiated in order to reduced the load on GoP

financing.


Decision

19.11. The Executive Board approved the “Draft ConcessionAgreement” for signing with M/s Habibabad Operation and

Management Engineering Company (Pvt) Ltd, joint venture of M/s

FWO & MAB (Muhammad Ayub Khan & Brothers) (the Concessionaire) for

“Construction of Habibabad Flyover, on National Highway (N-5) on

Build-Operate-Transfer basis”.

19.12. The Board also accorded approval to hand over Pattoki

Toll Plaza to Concessionaire, within forty five (45) days after

completion of proceedings in respect of “Financial Close ” under the


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20. Agenda Item 17

Payment of Arrears of Pay & Allowances wef Sep 12,

2005 Due to Upgradation of Posts of Audit and

Accounts Cadre

20.1. The subject agenda item could not be discussed due topaucity of time and was deferred.

Action By : Member (Finance)

21. Agenda Item 18

Revised Budget Estimates 2012-13 & BudgetEstimates 2013-14

Proposal

21.1. The NHA Executive Board is requested to consider &

recommend to NHC the NHA’s Revised Estimates 2012-13 of Rs70,124.991 million & Budget Estimates 2013-14 of Rs 89,248.776

million for approval.


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Decision

21.6. The Executive Board considered & cleared the Revised

Estimates 2012-13 (Annex-H) & Budget Estimates 2013-14 (Annex-I)

for approval of NHC.

Action By : Member (Finance)

22. Agenda Item 19

Annual Maintenance Plan for FY 2013-14

Proposal

22.1. The Executive Board is requested to approve the Annual

Maintenance Plan amounting to Rs 17,930.41 million for FY 2013-14.

Deliberation

22.2. The Director (RAMS) presented the case.


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22.4. The Additional Secretary (Finance) asked about the value

& strength of the above mechanism followed by NHA. It was informed

that the said mechanism is adopted in more than 35 countries in the

world. The Chairman further explained that NHA’s trying its best to

maintain the roads trafficable through periodic maintenance and

rehabilitation as the case may be. Therefore, AMP is prepared through

the said mechanism as experienced since last many years.

22.5. The VP-NESPAK suggested that besides timely

maintenance of highways be ensured by NHA, status of contracts

awarded under the AMP with progress be submitted to the Board on

quarterly basis for information and monitoring the expenditures of

AMP. He further desired that technical audit of all maintenance works

be also carried out and such reports be placed before the Board. Healso desired that status of works & expenditures to be carried out

under “Special Maintenance Head” must be placed before the Board

for information.

22.5.(a) The Chief T&C stated that the executive summary of the

AMP may also include status of complete picture of proposed budget

of previous financial year including all sub-heads of income & actual

expenditure incurred. The Board recommended that the same would

b i d b f b i i NHC f l Th


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22.8. The Chief (T&C) inquired about the Pasni - Gwadar Road

overlay as its revised PC-I is yet under process for approval in P&D

Division. As such, it appears that the project is not yet completed to

consider for maintenance plan. The Member (Ops) explained that this

road has been divided in to various sections for construction works

and this section (439-508 km) has been completed and traffic is

running on this section of road since 2003-04, hence road needs

maintenance. The Chief (T&C) viewed that NHA should check the

design period of road so that no section is picked up and included in

AMP before completion of design period.

22.9. The Additional Secretary (Finance) asked about funding inAMP whether on self finance basis out of NHA sources or otherwise. It

was explained that AMP budget comprises GoP grant share formaintenance and revenue available with NHA.

22.10. The Chief (T&C) pointed out that difference of estimatesfor 2013-14 in AMP (17 billion) and budget proposal (22 billion) beseen by NHA and figures be reconciled and corrected. The Member(Finance) explained that AMP estimates of 17 billion is a net costexcluding 30% cut off by GoP and O&M costs.



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EXTRACTS

MINUTES OF THE231ST EXECUTIVE BOARD MEETINGDECEMBER 17, 2013 AT ISLAMABAD


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NATIONAL HIGHWAY AUTHORITY

CONFIRMED MINUTES

231st Executive Board MeetingIslamabad, December 17, 2013

INDEX

PARA AGENDA ITEM PAGE ACTION BY

1. Introduction 1 ---

2. Opening Remarks (Chairman NHA) 1 ---

3. Formal Proceedings (Agenda Items) 1 ---

4. Agenda Item 1Confirmation of Minutes - 230th Meeting of theExecutive Board Held on Sep 17, 2013

2 Secy NHA

5. Agenda Item 2Amendment in NHA (Meetings of Executive Board)Regulations, 2003

5 Secy NHA

6 A d It 3


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PARA AGENDA ITEM PAGE ACTION BY

12. Agenda Item 9Construction of Highway Research & Training Centre(HRTC): Request for Provision of Funds of Rs 340Million for Acquisition of Land Measuring 2176 Kanalsand 17 Marla

17 Mem (O) & Mem (F)

13. Agenda Item 10NHA’s Composite Schedule of Rates (CSR)-2013 19 Mem (P)

14. Agenda Item 11Addendum-14 for Consultancy Services by M/s SMEC& Associates for Kalat-Quetta- Chaman Project (N-25)

21Mem (C)

15. Agenda Item 12Variation Order 16-12 of FWO for Repair of FloodDamaged Works at Balakot S-Bound: Basian-Balakot-Naran Section, N-15

22 Mem (C)

16. Agenda Item 13Addendum-2 of M/s Associated Consultancy Center(ACC) for Construction Supervision: Rehabilitation of Kamber - Shahdadkot Road Project

23 Mem (C)

17. Agenda Item 14Revision of “Factor-C” for Price Adjustment on

Construction of Shah Jeewna Bridge over River Chenab,District Jhang

24 Mem (C)

18. Agenda Item 15


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Annex-A

NATIONAL HIGHWAY AUTHORITY

LIST OF PARTICIPANTS

231ST EXECUTIVE BOARD MEETINGDECEMBER 17, 2013 AT ISLAMABAD

IN CHAIR

1. Mr Maroof Afzal Chairman

MEMBERS

2. Dr Shujat Ali AS (Budget)Finance Division

3. Mr Zulfiqar Ahmad Cheema Inspector General, NationalHighways & Motorway Police

4. Mr Aamir Hasan Senior Joint Secretary

Ministry of Communications

5. Mr Qazi Iftikhar Ahmed Vice President NESPAK


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-2-

NHA OFFICERS ITEM

11. Mr Yousaf Ali Member (Con/AP) 3, 8 & 11 to 15

12. Mr Mian Muhammad Asghar GM (ADB) 4

13. Mr Pervez Iqbal Sulehri GM (P&CA) 5, 8

14. Mr Noor-ul-Hassan GM (Bal), Quetta 6 & 11

15. Mr Arbab Ali GM (Planning) 7

16. Mr Fazal Nawab Khattak GM (M-1)/ HRTC 9

17. Mr Asim Amin GM (Design) 10

18. Mr Mukhtar Ahmad Durrani GM (NHIP) 12


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Annex-G

OBSERVATION OF ADDITIONAL SECRETARY FINANCEON BUDGET ESTIMATES

Observation #01:- Receivable from FWO amounting to Rs. 7,985.5million has been shown in the budget estimates 2012-13. The balanceof said amount which is still to be received should have to be reflectedin the Budget Estimates 2013-14.

Reply:- Rs. 663.6 million was received in the financial year 2012-13and remaining amount of Rs.5,091.9 million is still receivable fromFWO after the adjustment of operational charges of Rs. 2,229.9million. The outstanding amount is not likely to be received fromPSDP account against the adjustments of claims of FWO on

development projects therefore to avoid over commitment onmaintenance activities it was not included in the non-developmentportion of Budget Estimates 2013-14. However, in light of discussionthe receivables of Rs. 5,091.9 million from FWO have been included inBudget Estimates 2013-14 as “Reserve against receivables fromFWO (toll)”.

Observation #02:- The provision for the administrative expendituresin 2012-13 was 775 million whereas in the financial year 201314 ithas been increased to Rs 1 300 million which needs clarification


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Observation #04:- Why reserve for the pension funds amounting toRs. 242 million has been included in the estimates 2013-14?

Reply:- NHA service is pensionable as per NHA Act and is governedby its regulations given in the NHA manual. As per ActuarialValuation the pension fund is in deficit of Rs. 1,830.3 million.Considering the fund position Rs. 242.1 million has been kept in thebudget to cover the deficit gap in 7-8 years time.

Observation #05:- Explain 1% establishment expenditures.

Reply:- The permanent strength of NHA was increased from 252 to1642 in 1994 whereas the GoP was providing funds for 252 employee.In order to resolve the disbursement issue of the pay and allowances

of these employees a special provision equal to 1% of PSDP allocationhas been created with the approval of NHA Executive Board to payoutthese expenditures.

However as advised it has been renamed and showed as NHA’sestablishment expenditures in the Budget Estimates 2013-14.

Observation #06:- Budget should be compiled in book form.

Reply:- Budget Book 2013-14 has been compiled as advised


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231st Meeting, December 17, 2013, Islamabad


Annex-D

PRICE VARIATION OF VARIOUS INPUT ITEMS BASE RATES

COLLECTED IN DECEMBER 2010 ~ APRIL 2013 ~ NOVEMBER 2013

Item Unit

CSR-2011 CSR-2013 %age CSR-2013 %age

(Dec-2010) (April-2013) Increase (Nov-2013) Increase

(Actual) (Actual)From Dec-2010

to Apr-2013(Actual)

From Apr-2013

to Nov-2013

Diesel Rs./Litre 78.33 108.59 38.63% 116.75 7.51%

Bitumen Rs./Ton 68,550.00 83,112.00 21.24% 80,904.00 -2.66%

Labour (Rwp) Rs./Day 325 400 23.08% 500 25.00%

Cement Rs./Bag 330 420 27.27% 435 3.57%

Reinforcement (G-60) Rs./Ton 69,500.00 83,000.00 19.42% 84,000.00 1.20%

Crush (Rwp) Rs./CM 900.66 1,119.62 24.31% 1,165.00 4.05%

Average Increase in Basic Items Input Rates 25.66% 6.45%

General Sales Tax (GST) % 16% 16% 0.00% 17% 1.00%

Rs. Vs Dollar I USD = PKR 86.05 98.3 14.24% 108.2 10.07%


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231st Meeting, December 17, 2013, Islamabad


Annex-E

BIDDING TREND OF THE TENDERS DURING 2013

Engineer's Estimate(Million Rs.)

Bid Amount(Million Rs.)

Variation in % Between

DescriptionBids Opening

Date

CSR -2011 CSR - 2013CSR-2011

& CSR-

2013

BidAmount &

CSR-2011

BidAmount &

CSR-2013

1. ADB/FERP/ICB: Flood EmergencyReconstruction Project : ICB-N-03Rehab of Kohala-Muzaffarabad Road(S-2) Package-I: Km 00 To Km 20

24/Dec/12 1,414.17 1,749.60 1,716.00 23.72% 21.34% -1.92%

2. Package 1-ICB–S04(a) : Rehab/Reconstruction of Hala-Moro Section,N–5 (South Bound)

30/Apr/13 1,957.72 1,776.66 2,146.18 20.80% 10.19% -8.78%

3. Package 2-ICB–S04(b) : Rehab /Reconstruction of Hala-Moro Section,

N–5 (South Bound)

30/Apr/13 1,875.20 1,747.68 2,105.95 20.50% 7.30% -10.96%

4. Package3 ICB–S04(C) : Rehab/Reconstruction of Hala-Moro SectionN–5 (South Bound)

30/Apr/13 1,979.42 1,756.53 2,114.76 20.39% 12.69% -6.40%

5. Flood Emergency ReconstructionProject (FERP): ADB/FERP/ICB-S-01a:Ranipur - Rohri Road (N-5) (NorthBound) Package-I: Km 412 to Km 440(Length: 28.18 Km)

25/Apr/13 1,386.33 1,349.38 1,643.95 21.83% 2.74% -15.67%

6. ADB/FERP/ICB-S-01b: Ranipur-RohriRoad (N-5) (North Bound) Package-II:

Km 440 to Km 475

25/Apr/13 1,296.19 1,259.39 1,541.10 22.37% 2.92% -15.89%

7. Construction of Peshawar NorthernBypass, Package-II : Charsadda Roadto Warsak Road (Km 7+600 to19+500)

5/Nov/13 4,405.62 3,790.10 4,680.78 23.50% 16.24% -5.88%

TOTAL 13,093.92 15,963.36 14,616.49 21.91% 11.63% -8.44%


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Rs. in million)

REVISED ESTIMATES 2012-13

Receipts Budget Estimates Revised Estimates

2012-13 2012-13

i Development 50,727.221 51,661.089

ii Non-Development 27,935.387 18,463.902

Total:- 78,662.608 70,124.991

Expenditure Budget Estimates Revised Estimates

2012-13 2012-13

i Development 50,727.221 51,661.089

ii Non-Development 27,935.387 18,463.902

Total:- 78,662.608 70,124.991


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(Rs. in million)

REVISED DEVELOPMENT BUDGET 2012-13

Receipts Budget Estimates Revised Estimates2012-13 2012-13

i. Local Currency 24,602.32122,137.858

ii. Foreign Aid 26,124.90028,339.480

iii. Other Receipts - 1,183.751

Total:- 50,727.221 51,661.089

ExpenditureBudget Estimates Revised Estimates

2012-13 2012-13

i Local Currency 22,764.461 22,013.127ii Foreign Aid 26,124.900 28,339.480

iii Refund of Inter-office Borrowings of Previous PSDP Exp 1,330.590 786.210

iv. 1% PSDP Share against Establishment Charges507.270

522.272

Total:- 50,727.221 51,661.089


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REVISED ESTIMATES NON-DEVELOPMENT 2012-13

(Rs. in million)

Receipts Budget Estimates Revised Estimates

2012-13 2012-13i. Grants

a. Maintenance Grant 1,827.000 1,498.140

b. Thakot Khunjrab 232.000 129.920

c. KKH 69.000 38.640

d. Establishment Grant 101.687 85.833

ii. NHA own receipts (RMA and Other receipt) 16,389.573 15304.552

i ii. Receivable from FWO for 2011-12 7985.537 663.607

Iv. Refund of Internal Borrowings 1330.590 743.210

Total:- 27,935.387 18,463.902

Expenditure Budget Estimates

Revised

Estimates

2012-13 2012-13i. Maintenance

a. National Highways and Motorways 16,538.580 10,178.741

b. Thakot Khunjrab 232.000 129.920

c. KKH Skardu 69.000 38.640d. Establishment Grant 101.687 85.833

ii. RMA Establishment expenses 775.000 615.928

iii. Deficit in 1% expenses met from own resources 424.721 773.309

iv. Operational Charges 1,405.159 1,718.929

v. Police Fine Share 723.202 629.449

vi. Operational Charges against receivable from FWO 2,229.941 2,229.941

vii. Supplementary/Special Grant 242.178 242.178

viii. Reserve for Contingencies 5,092.232 1,750.201

Total:- 27,935.387 18,463.902


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(Rs. in million)

BUDGET ESTIMATES 2013-14

Receipts Budget Estimates2013-14

i Development 63,038.619

Total Development:- 63,038.619

ii Non- Development:- 22,118.168

a) RMA 21,265.822

b) Others 852.346Total Non-Develo ment:- 22 118.168

Total:- 85,156.787


2013-14

i Development 63,038.619Total Development:- 63,038.619

ii Non- Development 22,118.168

a) RMA 21,265.822

b) Others 852.346

Total Non-Development:- 22,118.168

Total:- 85,156.787


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(Rs in million)

BUDGET ESTIMATES DEVELOPMENT 2013-14

Receipts Budget Estimates

2013-14

i Local Currency 32,122.258

ii Foreign Aid 30,916.361

, .


2013-14

i Local Currency 30,161.282ii Foreign Aid 30,916.361

iii

Refund of Inter-office Borrowings of Previous PSDP

Exp. 1,330.590

iv. 1% PSDP Share against Establishment Charges 630.386

Total (B) 63,038.619


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BUDGET ESTIMATES NON-DEVELOPMENT 2013-14

(Rs. in million)

Receipts

Budget Estimates

2013-14

i Government Grants

a. Maintenance Grant 1,918.362

b. Thakot Khunjrab 232.000

c. KKH 69.000

ii NHA own receipts (RMA and Other receipt) 18,046.460

iii Internal Borrowings 1,000.000

Road Maintenance Account Receipts:- 21,265.822

Iv Establishment Grant 121.756V Misc. Receipt 400.000

Vi Refund of Internal Borrowings 330.590

Other Receipts 852.346Total:- 22,118.168


2013-14

i Maintenance of National Highways and Motorways 17,567.008

Ii RMA Establishment expenses 1,338.810Iii Operational Charges 1,688.799

iv Police Fine Share 671.205

Road Maintenance Account Expenditures:- 21,265.822v Establishment Expenditure (252 core employees) 121.756

vi Employee Pension fund Contribution 242.178

vii Deficit in 1% expenses met from own resources 438.278

Viii Reserve for contingencies 50.134

Other Expenditures:- 852.346

Total:- 22,118.168


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BUDGET AT GLANCE

(Rs. in million)

ReceiptsBudget Estimates Revised Estimates Budget Estimates

2012-13 2012-13 2013-14

i Development 50,727.221 51,661.089 63,038.619

ii Non- Development 27,935.387 18,463.902 22,118.168

Total (A) 78,662.608 70,124.991 85,156.787

Expenditure Budget Estimates Revised Estimates Budget Estimates

2012-13 2012-13 2013-14

iDevelopment 50,727.221 51,661.089 63,038.619

ii Non- Development 27,935.387 18,463.902 22,118.168

Total (B) 78,662.608 70,124.991 85,156.787

231-executive board meeting of nha

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