236 executive board meeting of nha

8/9/2019 236 Executive Board Meeting of NHA

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235th Meeting, May 22, 2014, Islamabad

NHA Executive Board’s Confirmed Minutes

1

NATIONAL HIGHWAY AUTHORITY

Secretariat Section

CONFIRMED MINUTES

Subject: 235th Meeting of the NHA Executive Board held on

May 22, 2014 at Islamabad

1. Introduction

1.1. The 235th meeting of the Executive Board of the National

Highway Authority was held at 1000 hours on May 22, 2014 at the

NHA Head Office Auditorium, Islamabad. Mr Shahid Ashraf Tarar,

Chairman NHA presided. List of participants is at Annex-A.

1.2. The meeting commenced with recitation of verses from the

Holy Quran and Urdu translation.

2. Opening Remarks - Chairman NHA

2.1. The Chairman extended warm welcome to the participants

of meeting and informed the Board Members about his activities

throughout the period in view of the ensuing projects, with particular

discussions with the Prime Minister in respect of Karachi - Lahore

Motorway (KLM) and China-Pak Economic Corridor.

2.2. The Chairman added that the Prime Minister has very

kindly agreed to release funds for land acquisition of KLM on priority

and acquisition of land through Government of the Punjab within

their province. It was also conveyed by the Chairman that the Prime

Minister intends to complete this project by June-2017 and NHA is

going to create the requisite infrastructure by placing a Member (KLM)

for the purpose.


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2.3. The Chairman informed the Board that he is trying to

streamline the tolling regime on NHA’s road network for which a

meeting with NLC officials and QMG was convened in GHQ, wherein,

it was decided that toll collection will be synchronized with financial

year ie July 1 to June 30. As committed by the Chairman the minutes

of the meeting are enclosed for perusal of the Board Members

(Annex-B). Moreover, e-tolling (ETTM System) will be employed on all

toll plazas of national highway network gradually on BOT basis with

five years contract and no cost to NHA. NLC will participate in open

competitive biddings. The Board appreciated efforts and steps taken

by the Chairman towards the improving efficiency and image of NHA.

2.4. The Chairman also informed that as a result of valuable

input by the IG (NH&MP) NHA is going to discontinue hiring of

vehicles for fine collection. Either NHA will arrange vehicles out of

available lot, if possible or National Bank and Habib Bank who have

better facilities in this regard will be contacted. On the suggestion of

the Chairman it was agreed that the Member (Admn) and GM

(Revenue) will coordinate with the banks and submit proposal having

better terms & conditions.

2.5. The Chairman apprised the Board that the existing mobile

weigh stations are not economical, therefore, NHA is trying to

gradually replace the mobile weigh stations with permanent weigh

bridges. The IG (NH&MP) appreciated the expeditious actions taken by

Chairman NHA on his observations & recommendations.

2.6. The Chief (T&C) invited the attention of Chairman NHAtowards the maintenance of N-5 in Sindh province particularly and

lack of road furniture near Karachi. He also added that in FERP

projects of Sindh province frequent variations in scope were observed.

He further conveyed that during his visit to Gilgit-Baltistan, he

observed lack of maintenance efforts on newly constructed Raikot-

Khunjerab Section of KKH. The Chairman responded to the

observations of Chief (T&C) with the assurance that continuous efforts

are being made to improve the maintenance of national highway

network and monitoring of projects being executed by NHA. For this


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purpose weekly meetings on each Monday are being convened

particularly for maintenance works. However, in FERP, NHA has been

doing the works as per requirements of the ADB and all the scope

variations are concurred by the donor agency.

2.7. The Chief (T&C) reposed his confidence in Chairman NHA

and conveyed his appreciation for commendable efforts made by the

offices of Sindh Region during visit of national highway network.

FORMAL BOARD PROCEEDINGS

3. Agenda Items

3.1. The Secretary NHA stated that 16 x working papers were

circulated in two volumes. Subject-wise distribution is as follows:-

Item No

a. Confirmation of minutes of 234th meeting 1

b. Construction matters 9

c. Planning matter 1

d. Aided Projects matter 1e. Operation matter 3

f. Administration matter 1

Total 16

3.2. The Secretary NHA added that following working papers

will be tabled if permitted by the Board:-

a. PC-I for Construction of Multan - Sukkur Section of

Karachi - Lahore Motorway (387 km).

b. PC-I for Land Acquisition, Affected Properties

Compensation & Relocation of Utilities for

Construction of Lahore Eastern Bypass Project

(LEBP).

c. Engagement and Remuneration of Lawyers for NHA

Cases


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4. Agenda Item 1Confirmation of Minutes - 234th Meeting of theExecutive Board Held on Apr 22, 2014

4.1. The Secretary NHA solicited confirmation of minutes of

234th Executive Board meeting held on Apr 22, 2014.

4.2. The GM (P&CA) informed the Board that bid prices in

respect of Turbat - Hoshab Sec-IIA Km (0+000 to 76+250) and

Gwadar-Turbat Sec-I Pack-IIB Km (100+800 to 164+250), FWO have

revisited and the rates have been rationalized at par with the Gwadar -

Turbat Sec-I Pack-IIA Km (47+200 to 100+800) ie 56.47% above the

Engineer’s Estimates.

4.3. The Board approved award of works of Turbat - Hoshab

Sec-IIA Km (0+000 to 76+250) and Gwadar-Turbat Sec-I Pack-IIB Km

(100+800 to 164+250) to FWO.

4.4. Minutes were accepted for confirmation.

Decision

4.5. The Executive Board confirmed minutes of 234th meetingheld on Apr 22, 2014 with the following amendment:-

a. In Para-3 titled “Presentation by GM (P&CA)Regarding Award of Leftover Works of Gawadar -Ratodero Road Project (M-8)” add the following noteunder the head “Decision”:-

Note. In 235 th Executive Board meeting of May 22,

2014, during confirmation of minutes of 234 th

Executive Board meeting, the Member

(Planning) briefed the Board that in accordance

with the aforementioned decision all three

contracts of Gwadar - Turbat - Hoshab Section

of M-8 are awarded to FWO having bid price

56.47% above Engineer’s Estimate without

reducing the scope of work. The Board

approved the said award of works.

Action By : Secretary NHA


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5. Agenda Item 2

Revised PC-I for Construction of Kolpur Bypass Road

Project (N-65)

Proposal

5.1. The Executive Board is requested to recommend the

revised PC-I for construction of Kolpur Bypass Road Project (N-65) at a

cost of Rs 998.857 million (+56.26% over the original PC-I) for

approval of CDWP.

Deliberation

5.2. The GM (Balochistan-North) Quetta presented the case.

5.3. The Chief (T&C) enquired that, considering the fact that

the majority of substrata in the project area is based on hard rock

then the addition of aggregate base course layer needs clarification.

The GM (Bal-N) replied that the subsoil conditions are not uniform on

the entire stretch therefore, the necessity of aggregate base course

layer is in accordance with the ground conditions and design

requirements.

5.4. The VP-NESPAK asked to produce original file of the case

in order to ascertain that all codal formalities have been fulfilled and

the concerned officers have concurred the revised PC-I. The original

file duly recommended by the respective committee and approved by

the Chairman was presented to the meeting.

5.5. The Chairman assured the Board that all the cases

presented before this forum after necessary scrutiny, concurrence of

all concerned and subsequent clearance by the Chairman.

5.6. The VP-NESPAK desired that all future working papers

presented to the Board must be signed by the concerned Member NHA

and the same was agreed by the Board.


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5.7. The Board deliberated and cleared the proposal.

Decision

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

construction of Kolpur Bypass Road Project (N-65) at a cost of Rs

998.857 million (+56.26% over the original PC-I) for approval of

CDWP.

Action By : Member (Construction)

6. Agenda Item 3

Revised PC-I (2nd Revision) of Lowari Tunnel Project

Proposal

6.1. The Executive Board is requested to recommend revised

PC-I (2nd Revision) of Lowari Tunnel & Access Road Project amounting

to Rs 26,954.60 million including FE component of Rs 5,870.00

million.

Deliberation

6.2. The GM (LTP) presented the case. He explained that the

major increase in cost is because of increase in scope, addition of

slope protection works and inclusion of avalanche gallery. He further

added that the project area is quite challenging to work and remainsunder snow for most of the year.

6.3. The Chief (T&C) suggested that the escalation cost of the

project should be worked out on pro-rata basis. However, the GM

(LTP) explained that during scrutiny by TWP the escalation cost was

rationalized and further reduction in cost would be unrealistic.


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6.4. The VP-NESPAK pointed out that the consultancy cost on

the project is almost 1/3rd of the entire project cost, which appears to

be on much higher side. The GM (LTP) replied that consultancy

agreement is time based, whereas, the construction contract is

performance based. Whenever, the construction activity is delayed due

to paucity of funds or any other reason, the consultancy expenditures

do accrue because of consumed man-hours of available consultant

staff. Thus the consultancy charges keep on accumulating irrespective

of the physical execution of the works. The VP-NESPAK advised that

the consultancy cost should be reduced in conjunction with the pace

of works. The Chairman supported the version and directed the GM

(LTP) this aspect be considered and a report of work done and

reduction in cost of consultants accordingly be prepared and

submitted to the Board.

6.5. The Member (Planning) emphasized that road works of

this project are of complicated nature and should be executed

simultaneously with the construction of tunnel. However, the shortage

of funds and insufficient allocation refrain NHA from tendering these

works. The JS (MoC) / Chief (NTRC) suggested that NHA may take up

a case for allocation of additional funds at appropriate level. The Chief

(T&C) supported this suggestion and proposed that the Planning

Division be approached with the recommendations of the Board for

additional allocation of funds.


Decision

6.7. The Executive Board recommended revised PC-I (2nd

Revision) of Lowari Tunnel & Access Road Project amounting to Rs

26,954,627,544/= (Rupees twenty six billion, nine hundred & fifty four million,

six hundred & twenty seven thousand, five hundred & forty four only) including

FE component of Rs 5,869,727,790 (Rupees five billion, eight hundred &

sixty nine million, seven hundred & twenty seven thousand, seven hundred & ninety

only) for the approval of CDWP/ECNEC with the advice that Planning

Division be requested for additional allocation of funds.



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7. Agenda Item 4Addendum-3 of M/s AA Associates: Construction of

Approach Road on Larkana Side of Larkana Khairpur

Bridge (Pack-I & IV)

Proposal

7.1. The Executive Board is requested to approve the

Addendum No 3 of M/s A.A Associates for Construction of Approach

Road on Larkana Side of Larkana Khairpur Bridge (Pack-I & IV)

amounting to Rs 7,514,212/= rendering the overall cost of

Consultancy Agreement to Rs 46,736,506.

Deliberation

7.2. The Member (Construction) presented the case.

7.3. The VP-NESPAK enquired about the departmental

working and approval for the subject Addendum. The Member (Const)

explained that all the concerned have concurred the Addendum 3 and

other codal formalities have been fulfilled.

7.4. The Chief (T&C) pointed out that the cost effect of this

Addendum should be reflected in revised PC-I of the project to which

Member (Const) agreed and the Chairman directed for doing the

needful.


Decision

7.6. The Executive Board approved the Addendum No 3 of M/s

A.A Associates for Construction of Approach Road on Larkana Side of

Larkana Khairpur Bridge (Pack-I & IV) amounting to Rs 7,514,212/=

(Rupees seven million, five hundred fourteen thousand, two hundred and twelve

only), 14.68% of already approved revised consultancy cost with the

cumulative increase of 248.28% above original cost; rendering the

overall cost of Consultancy Agreement to Rs 46,736,506/=.



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8. Agenda Item 5

Revised Addendum-15 of M/s EA Consulting (Pvt) Ltd

for Construction Supervision of Lyari Expressway

Project

Proposal

8.1. 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 consisting of

time extension from Jan 1, 2010 to Dec 31, 2013 amounting to Rs49,945,839/=; which is 214% above the original contract and 33%

above the approved revised cost in Addendum No 14 with cumulative

increase of 858.11%. The revised consultancy cost including

Addendum No 15 (Revised) will be Rs 199,845,629/=.

Deliberation


8.3. The Chief (T&C) enquired that whether the re-rating being

done for this Addendum is permissible in NHA Code. It was explained

by Member (Const) that NHA Code allows re-rating under Chapter 3

Clause 105-107 and Table-III-14 shows the Committee competent for

revision of rates. It was further explained by the Member (Finance)

that as the matter relates to Consultancy Agreement, therefore, this

Addendum was not referred to re-rating Committee.

8.4. The VP-NESPAK emphasized that the re-rating being done

is an anomaly and procedures should be followed. The Member

(Const) explained that the said Addendum only covers an essential

expenditure of salaries of supervisory consultant with reduced staff till

Dec-2013; therefore, the Board is requested to clear the Addendum.

8.5. The Board deliberated and cleared the proposal with the

direction that in future all such cases be submitted after fulfilling all

codal formalities as provided in NHA Code.


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Decision

8.6. The Executive Board approved Addendum No 15 (Revised)

to M/s EA Consulting (Pvt) Ltd for construction supervision of Lyari

Expressway Project consisting of time extension from Jan 1, 2010 to

Dec 31, 2013 amounting to Rs 49,945,839/= (Rupees forty nine million,

nine hundred forty five thousand, eight hundred and thirty nine only); which is

214% above the original contract and 33% above the approved revised

cost in Addendum No 14 with cumulative increase of 858.11%. The

revised consultancy cost including Addendum No 15 (Revised) will be

Rs 199,845,629/=.

8.7. The Board directed that in future all such cases be

submitted after fulfilling requisite codal formalities.


9. Agenda Item 6

Addendum-4 of M/s EA Consulting (Pvt) Ltd for

Consultancy Supervision of Improvement of Inner

City Ring Road, Multan Project

Proposal

9.1. The Executive Board is requested to approve Addendum

No 4 of M/s EA Consulting (Pvt) Ltd, for Construction Supervision for

Improvement of Inner City Ring Road Multan costing Rs 25,419,311/=

with revised contract cost of Rs 166,535,834/= and overall increase of

93.08% and EOT of 730 days ie up to Oct 31, 2014.

Deliberation

9.2. The GM (Const, Punjab-S) Multan presented the case and

explained that major reasons for delay of the projects were relocation

of utilities and land acquisition.


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9.3. The VP-NESPAK pointed out that as per earlier decisions

of the Board revision in supervisory consultancy agreement were

required to be titled as “Addendum” and not “Variation Order”. VOs

are for the purpose of revision in the contracts of construction works.

The Chairman agreed with the observation and desired that all NHA

Members should ensure submission of working papers accordingly.

9.4. The VP-NESPAK enquired that whether this addendum is

based on original rates or rates are being revised. The Member (Const)

responded that no re-rating has been done and original charge rates

are used.


Decision

9.6. The Executive Board approved Addendum No 4 of M/s EA

Consulting (Pvt) Ltd, for Construction Supervision for Improvement of

Inner City Ring Road Multan costing Rs 25,419,311/= (Rupees twenty

five million, four hundred nineteen thousand, three hundred & eleven only) with

revised contract cost of Rs 166,535,834/= and overall increase of

93.08% and EOT of 730 days ie up to Oct 31, 2014.


10. Agenda Item 7

Revised PC-I: Dualization of N-70/M-4 Link

Interchange-Punjab (Nagshah Chowk) Multan CrossingN-70 From Multan to Shujaabad

Proposal


revised PC-I for N-70/M-4 link interchange-Punjab (Nag Shah Chowk)

Multan for costing to Rs. 1,617.18 million for approval from CDWP /

ECNEC.


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Deliberation

10.2. The GM (Const, Punjab-S) Multan presented the case.

10.3. The Chairman enquired about the reasons for revision of

PC-I. The GM (Const, P-S) responded that major increase in cost is

because of addition of structural works and land acquisition, which

was not included in original PC-I.


Decision


N-70 / M-4 link interchange-Punjab (Nag Shah Chowk) Multan for

costing to Rs 1,617.18 million for approval from CDWP / ECNEC.


11. Agenda Item 8

Addendum-4 of M/s EA Consulting Co: Rehabilitation

and Widening of Coastal Highway from Gharo to Keti

Bunder Project (N-110)

Proposal


No 4 of M/s EA Consulting (Pvt) Ltd, for Construction Supervision of

Gharo – Keti Bunder Project, costing Rs 20,538,960/- with total

revised consultancy cost of Rs 110,677,951/- and overall increase of 68.09% along with EOT upto Mar 31, 2014.

Deliberation

11.2. The GM (Const, Sindh) presented the case and briefed the

Board that two out of three sections of the project are substantially

completed, whereas, the works on the third section are suspended

owing to disputes and pending arbitration proceedings between the

Contractor and NHA.


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11.3. The VP-NESPAK asked about the; status of last

Addendum, the revision of charge rates (if any) and the deployment of

staff on site. The GM responded that last Addendum was approved by

the competent forum, original charges are used and minimal staff is

deployed on site for finalization of accounts with respect to the

sections already completed.

11.4. The Chief (T&C) enquired about the tentative timeline for

resumption of works on third section and subsequent requirement of

supervisory consultant. The Member (Const) replied that the

resumption of works on the third section is linked with the conclusion

of arbitration and resolution of disputes, therefore, a timeline cannot

be assessed. However, as soon as the works resume on Package-III the

Supervisory Consultancy staff will be deployed on site as per

requirements.

11.5. The Chief (T&C) enquired about the steps taken by NHA

to protect the already executed works on Package-III particularly when

the works are suspended. The Member (Const) explained that

according to the contract, the Contractor is responsible for the

protection of works until taken over by the Employer. However, the

Member (Planning) suggested that it will be in the interest of the

project that NHA may prepare an SOP to formalize a procedure for the

protection of work done particularly when a project is suspended by

the Contractor. The Chairman agreed to the suggestion and desired

that Planning Wing (P&CA) should prepare said SOP and insert

contractual conditions in the future contracts to safeguard interest of

public works in such peculiar situations.


Decision

11.7. The Executive Board approved Addendum No 4 of M/s EA

Consulting (Pvt) Ltd, for Construction Supervision of Gharo – Keti

Bunder Project, costing Rs 20,538,960/- (Rupees twenty million, five

hundred thirty eight thousand, nine hundred & sixty only) with total revised

consultancy cost of Rs 110,677,951/- and overall increase of 68.09%

along with EOT upto Mar 31, 2014.



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12. Agenda Item 9

Addendum-3 of M/s REC (Pvt) Ltd in Association with

M/s Umer Munshi Associates: Construction

Supervision of Sultan Bahoo Bridge Over River

Chenab Linking Shorkot to Garh Maharaja

Proposal


No 3 of M/s REC (Pvt) Ltd in Association with M/s Umer Munshi

Associates for Construction Supervision of Sultan Bahoo Bridge Over

River Chenab Linking Shorkot to Garh Maharaja costing Rs

11,986,241/= 26.55% above already approved consultancy cost with

the overall effect of Rs 24,760,035/= cumulative increase of 76.48%

above original consultancy cost, with the EoT upto Aug 31, 2014.

Deliberation


12.3. The Chief (T&C) enquired about the package-wise

progress which was explained by the GM (Const) as under:-

Pack-I(Main

Bridge)

Pack-IIGarh MaharajaSide Approach

Road

Pack-IIIShorkot Side

ApproachRoad

FloodProtectionon GarhMaharaja

Side

J-Spur onGarhMaharajaSide

J-Spur &Raising of ExistingDyke onShorkot

Side

Planned 100% 100% 100% 100%

NotCommenced

as yet.

100%

Achieved 88% 60% 71% 9% 33%

Balance 12% 40% 29% 91%(Work undersuspensiondue to landacquisitionproblem)

67%

12.4. The Chief (T&C) observed that the deployment of

Consultant staff on site should be matched with the actual physical

progress and demobilization of Consultant from each package should

be preceded by the package-wise completion.



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Decision

12.6. The Executive Board approved Addendum No 3 of M/s

REC (Pvt) Ltd in Association with M/s Umer Munshi Associates forConstruction Supervision of Sultan Bahoo Bridge Over River Chenab

Linking Shorkot to Garh Maharaja costing Rs 11,986,241/= (Rupees

eleven million, nine hundred eighty six thousand, two hundred & forty one only) ,

26.55% above already approved consultancy cost with the overall

effect of Rs 24,760,035/= cumulative increase of 76.48% above

original consultancy cost, with the EoT upto Aug 31, 2014.


13. Agenda Item 10Revised PC-I for Land Acquisition, PropertyCompensation and Shifting of Utilities at Faisalabad-Khanewal Motorway (M-4)

Proposal


revised PC-I for land acquisition, property compensation and shifting

of utilities of Faisalabad - Khanewal Motorway, M-4 (184 km) at a costof Rs 6,456.39 million for CDWP/ECNEC.

Deliberation

13.2. The GM (M-4) presented the case and explained the fund

requirement for acquisition of land and shifting of utilities from Gojra

- Khanewal Section (M-4).

13.3. As NESPAK is working as a Consultant on M-4, the

Chairman requested VP-NESPAK to direct the concerned to delegate

requisite staff for expeditious preparation of LARP. The VP-NESPAK

assured that all necessary assistance will be provided to resolve this

issue.

13.4. The Chairman informed the Board that Khanewal - Abdul

Hakeem portion of Section-III (M-4) is being included in Karachi -

Lahore Motorway Project. The Chief (T&C) observed that for this

reason the said portion should be excluded from revised PC-I under

consideration.


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13.5. The GM (M-4) explained the Board that the working on

both scenarios has been done and presented the following before the

Board:-

Option-I: Revised PC-I for Land Acquisition, Property Compensation

and Shifting of Utilities at Faisalabad- Khanewal

Motorway (M-4) including Khanewal - Abdul Hakeem

Portion.

Rupees in Million

Sr # DescriptionOriginal

PC-IRevised

PC-IExpenditure

Dec 2013% Increase /

Decrease

1 Land Acquisition 2,742.41 4,356.8 2,967.60 + 58.8 %

2 Shifting of Utility 331.75 352.69 256.76 + 6.3 %

3 Small Schemes 294.20 650 41.53 120.9 %

4 General Items 312.69 338.26 151.60 + 8.2%

5 NHA Establishment 183.92 446.1 323.67 + 142 %

6 Environment / HRD 91.96 5.0 0 - 95 %

7 Contingency @ 5% 0 307.45 0

Total 3,956.93 6,456.39 3,741.16 + 62.9 %

Option-II: Revised PC-I for Land Acquisition, Property Compensation

and Shifting of Utilities at Faisalabad- KhanewalMotorway (M-4) excluding Khanewal - Abdul Hakeem

Portion.

Rupees in Million

DescriptionOriginal

PC-IRevised

PC-IExpenditure

Dec 2013% Increase /

Decrease

1. Land Acquisition 2,742.41 2,558.69 2,967.60 -6.7 %

2. Shifting of Utility 331.75 331.76 256.76 0 %

3. Small Schemes 294.20 427.4 41.53 45 %

4. General Items 312.69 289.81 151.60 -7.3%

5. NHA Establishment 183.92 446.17 323.67 + 142 %6. Environment / HRD 91.96 5.00 0 - 95 %

7. Contingency @ 5% 0 128 0

Total 3,956.93 4,186.96 3,569 + 5.81 %

13.6. The Board deliberated and cleared the Option-II, which is

based on tentative distance of 17 km from Shorkot to Abdul Hakeem

and it will be practicable after finalization of actual alignment of KLM

and establishment of exact location of junction of KLM and M-4

Section-3. The Chairman directed to check the status and review

accordingly.


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Decision


land acquisition, property compensation and shifting of utilities of Faisalabad - Khanewal Motorway (M-4) excluding Khanewal - Abdul

Hakeem Portion (being proposed as a part of Karachi - Lahore Motorway Project)

at a cost of Rs 4,186.96 million for CDWP/ECNEC, after incorporating

necessary changes in the revised PC-I as mentioned in Para-13.6.

Action By : Member (Aided Projects)

14. Agenda Item 11Award of Works for Construction of Approach Road

from Kot Mithan to N-55 (from Km 23+000 to Km

31+094) Shaheed Benazir Bhutto Bridge Over River

Indus Connecting Chachran Sharif to Kot Mithan

(Package-I)

Proposal

14.1. The Executive Board is requested to award Package-I:

Construction of Approach Road from Kot Mithan to N-55 (from km

23+000 to km 31+094) of Shaheed Benazir Bhutto Bridge over River

Indus connecting Chachran Sharif with Kot Mithan to the lowest

evaluated bidder ie M/s Ch Abdul Latif & Sons (Pvt) Ltd, at their

quoted / evaluated bid price of Rs 715,455,774/-, which is 11.19%

below the Engineer’s Estimate of Rs 805,589,833 based on CSR-2013.

Deliberation

14.2. The GM (P&CA) presented the case. On query of the Chief

(T&C) the GM (P&CA) clarified that the Engineer’s Estimate is basedupon already approved CSR-2013 and 14.3 meter of road width

includes shoulders on either side.

14.3. The Member (Planning) explained the importance of the

project and emphasized that the balance works had to be undertaken

as soon as possible but unfortunately the funding restrictions does

not allow NHA to move quickly enough. Whereas; the Chief Minister

Punjab has desired for its early completion.


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Decision

14.5. The Executive Board awarded Package-I: Construction of

Approach Road from Kot Mithan to N-55 (from km 23+000 to km

31+094) of Shaheed Benazir Bhutto Bridge over River Indus

connecting Chachran Sharif with Kot Mithan to the lowest evaluated

bidder ie M/s Ch Abdul Latif & Sons (Pvt) Ltd, at their quoted /

evaluated bid price of Rs 715,455,774/- (Rupees seven hundred fifteen

million, four hundred fifty five thousand, seven hundred and seventy four only) ,

which is 11.19% below the Engineer’s Estimate of Rs 805,589,833based on CSR-2013.

Action By : Member (Planning)

15. Agenda Item 12

Award of Maintenance Contract for KKH (Km 218-

350) to FWO for FY 2013-14 on Term & Length Based

on Performance Indicators

Proposal

15.1. The Executive Board is requested to approve award of

maintenance contract for KKH (km 190 ~ 350) to FWO for FY 2013-14

on term & length based on performance indicators at a cost of Rs 132

million.

Deliberation

15.2. The Member (Operations) presented the case and upon aquery of the Board, he explained that since the completion of KKH in

70s, FWO has been maintaining this strategic road. Initially Ministry

of Finance used to directly release the funds to FWO, however, later

on it was decided by the Federal Cabinet that the funds should be

disbursed through NHA in order to ensure quality of maintenance

efforts. Currently, Thakot to Raikot (km 191 to 471) Section of KKH is

being maintained by FWO and the maintenance contract was awarded

for FY 2012-13 on term & length basis.


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15.3. The Chief (T&C) enquired that why the contract is being

awarded to FWO on single source basis. The Member (Ops) clarified

that this proposal is not an award of contract but only a scheme to

retain the services of FWO for maintenance of KKH and for the

purpose of disbursement of funds in the light of Federal Cabinet

decision. Moreover, the audit also requires endorsement of NHA

Executive Board in this regard.

15.4. The Chief (T&C) desired that the observation of audit be

presented before the Board.

15.5. The VP-NESPAK asked about the decision of Federal

Cabinet whether it was taken before establishment of Public

Procurement Regulatory Authority (PPRA) and publication of PPRA

Rules or after the promulgation of said authority / rules. The Member

(Ops) informed that the Cabinet decision was taken before

establishing PPRA / Rules. The VP-NESPAK desired that in this

scenario the Cabinet decision need to be shared with PPRA for the

purpose of its implementation after Gazette Notification of PPRA /

Rules and decision of Board may be taken after obtaining the opinion

of PPRA.

15.6. The Chief (T&C) desired that in above context, the

proposal should not be titled as “Award of Contract.” The Chairman

supported the version.

15.7. The Board deliberated and agreed with the viewpoint of

VP-NESPAK.

Decision

15.8. The Executive Board considered the proposal for

maintenance of KKH (Km 218-350) by FWO for FY 2013-14 on term &

length based on performance indicators and desired to resubmit the

same after attending the aforesaid observations and deliberations.

Action By : Member (Operations)


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16. Agenda Item 13Policy Decision Regarding Award of works to FWO on

Single Tender Basis, Exemption of Income Tax &

Performance Guarantee

Proposal

16.1. The Executive Board is requested to approve the following:

a. Approve/regularize all contracts awarded to FWO on

single source basis on KKH (N-35), N-15 and S-1 in

emergency.

b. Prevailing government policies on award of works to

FWO may be adopted regarding furnishing of

performance guarantee and deduction of income tax.

c. Award of works to FWO on single source basis on

KKH (N-35), N-15 and S-1 in emergency.

Deliberation

16.2. The Member (Operations) presented the case.

16.3. The VP-NESPAK desired that the relevant rules,

regulations and approved procedures should be followed and a

permission / consent should be taken from PPRA before taking any

such policy decision. The Chief (T&C) supported the version. The

Chairman directed Member (Planning) to prepare a case for PPRA duly

supported by the Federal Cabinet decision for FWO on KKH to seek

guidance in this regard as a special dispensation and further directed

Member (Ops) to resubmit the proposal after consultation with PPRA.

16.4. The Board deliberated and agreed with the viewpoint of

VP-NESPAK.

Decision

16.5. The Executive Board considered the proposal and desired

to resubmit the same after attending the aforesaid observations and

deliberations.



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17. Agenda Item 14Addendum No 1 Construction Supervision of

Supervisory Consultants M/s AA Associates for

Bridge Over River Indus Amri (N-55) with Qazi AhmedN-5 (Packages I & II)

Proposal

17.1. The Executive Board is requested to is requested to

approve Addendum No 01 of Supervisory Consultants M/s AA

Associates for Bridge Over River Indus Amri (N-55) with Qazi Ahmed

N-5 (Packages I & II) costing Rs 31,514,257/-, which is 63.54% above

the original contract rendering the revised consultancy cost of Rs 81,108,533/- with Extension of Time wef Apr-2012 to Oct-2013.

Deliberation

17.2. The Member (Construction) presented the case and

briefed that the Main Bridge (Pack-I) is completed, whereas, progress

on Pack-II (Qazi Ahmed Approach Road) and Pack-III (Left Guide

Bank) is 80% and 50% respectively. However, the work on Pack-IV

(Right Guide Bank) is yet to be started. Other river training works are

yet to be awarded.

17.3. On the query of VP-NESPAK, the Member (Const)

explained that further Addenda will be processed for completion of

balance works subject to availability of land for Pack-IV and payment

to the Contractors for Pack-I & III.


Decision

17.5. The Executive Board approved Addendum No 01 of

Supervisory Consultants M/s AA Associates for Bridge Over River

Indus Amri (N-55) with Qazi Ahmed N-5 (Packages I & II) costing Rs

31,514,257/- (Rupees thirty one million, five hundred fourteen, two hundred &

fifty seven only), which is 63.54% above the original contract rendering

the revised consultancy cost of Rs 81,108,533/- with Extension of

Time wef Apr-2012 to Oct-2013.



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18. Agenda Item 15Approval for Award of Works for “Improvement of

Tarnol Railway Crossing with Widening of Gates and

Closure of U-turns at Km 1553+218-1555+393”on N-5

Proposal

18.1. The Executive Board is requested to accord approval for

award of works for improvement of Tarnol Railway Crossing with

widening of gate and closure of U-turns at km 1553+218 – 1555+393

on N-5 to the lowest evaluated bidder ie M/s NPI Engineering &

Construction Co at his quoted bid Price of Rs 243,292,284/=, which is

1.75% below the Engineer’s Estimate based on CSR-2011 while thevariance of the same w.r.t. CSR-2011+15% is -16.75%. The Work shall

be charged from AMP 2014-15.

Deliberation

18.2. The Member (Operations) presented the case.

18.3. The Chairman observed that the quoted bid price by M/s

NPI Engineering & Construction Company is 16.75% below Engineer’sEstimate; therefore, will it be able to complete the works with the

desired quality and in accordance with the design/ specifications. The

VP-NESPAK proposed that a mechanism (bank guarantee, etc) should

be devised to safeguard NHA’s interest whenever the bid received is

substantially lower (20% to 25%) than the Engineer’s Estimate. The

Chairman supported the version and suggested that the appropriate

provisions in the tender / contract documents should also be added.

18.4. The Chief (T&C) enquired that why the Engineer’sEstimate is based on CSR-2011 + 15%. The Member (Ops) responded

that the Engineer’s Estimate has been worked out in accordance with

the earlier decision of the Board.

18.5. The Chief (T&C) suggested that for the purpose of

procurement a single format CSR should be followed. The Chairman

supported the version and desired that standard criteria be

formulated and circulated separately by the Planning Wing.


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Decision

18.7. The Executive Board approved award of works for

improvement of Tarnol Railway Crossing with widening of gate and

closure of U-turns at km 1553+218 – 1555+393 on N-5 to the lowest

evaluated bidder ie M/s NPI Engineering & Construction Co at his

quoted bid price of Rs 243,292,284/= (Rupees two hundred forty three

million, two hundred ninety two thousand, two hundred & eighty four only), which

is 1.75% below the Engineer’s Estimate based on CSR-2011 while the

variance of the same w.r.t. CSR-2011+15% is -16.75%. The work shall

be charged from AMP 2014-15.


19. Agenda Item 16

Facility for Retention of Hired House and Long Term

Advances to the Employees Posted in NHA on

Deputation

Proposal

19.1. The Executive Board is requested to approve the following

amendments in the SOPs regarding rental / long term advances and

retention of hired houses after repatriation in respect of

deputationists:-

a. The deputationists will only be paid monthly advance

rent.

b. Retention of house hiring after repatriation to the

deputationist may be discontinued.

c. Long term advances may not be granted to

deputationist while serving in NHA.


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Deliberation

19.2. The Member (Admn) presented the case and he

highlighted great difficulties, being faced for recovering the amount

paid as advance to deputationists after their repatriation. He informed

that a huge amount is not being recovered even after hectic and

continuous efforts of NHA.

19.3. The Chief (T&C) opined that hiring of houses without

advances seems mostly difficult, therefore, he suggested that rentaladvance upto six months for hiring of houses by deputationists may

be allowed. However, it should not exceed to the date of completion of

deputation period. The Chairman supported the suggestion.


Decision

19.5. The Executive Board approved the following amendmentsin the SOPs regarding rental / long term advances and retention of

hired houses after repatriation in respect of deputationists:-

a. The deputationists will be paid rental advance upto six

month for hiring of houses. The advance, however,

should not exceed beyond the date of completion of

deputation period.

b. Retention of house hiring after repatriation to thedeputationist shall be discontinued.

c. Long term advances shall not be granted to

deputationist while serving in NHA.

Action By : Member (Admn)


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20. Additional Agenda Item-I

Engagement and Remuneration of Lawyers for NHA

Cases

Proposal

20.1. The Executive Board is requested to approve Proposal-I &

II to safeguard NHA interests of billions of rupees:-

Proposal-I

Cases

Existing

Max Fee Rs.

Proposed

Max Fee Rs.

a. Supreme Court of Pakistan

(SCP)

Upto 100,000/- Upto 150,000/-

b. High Courts (HC) / Federal

Services Tribunal (FST)

Upto 50,000/- Upto 75,000/-

c. District Courts etc / Wafaqi

Mohtasib

Upto 20,000/- Upto 30,000/-

d. Advocate-on-Record (SCP Cases) Upto 12,000/- Upto 15,000/-

10% of the fee be paid as court expenses upto High Court cases.

Proposal-II

The Powers vested in Chairman NHA in Para 58 Chapter Six of NHA

Code as amended in 2005 be restored. Chairman NHA be authorized

to approve / engage lawyers at professional fees upto Rupees One

million (Rs 1,000,000/-) and for lawyers engaged at professional fees

above Rupees One million, approval of the Executive Board be

processed subsequently.

Deliberation

20.2. The Member (Admn) presented the case and explained

that the current rates for engaging the legal counsels for different

courts were approved more than five years back by the Executive

Board in its 160th meeting of Sep 24, 2008. Keeping in view the

inflationary trends it is becoming increasingly difficult to engage and

retain good legal counsels thus the necessity arises to enhance the

legal fee.


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20.3. The Chairman explained that he is actually proposing to

limit the full powers of Chairman regarding hiring of special attorneys

for the cases of peculiar nature in any of the courts or arbitration that

may require higher compensation, under Para-58 Chapter Six of NHA

Code-2005 to Rs 2 million.

20.4. The Board expressed full confidence on Chairman NHA

and desired that the Chairman should exercise his full powers in this

regard as per provisions of NHA Code-2005. However, the Chairman

may inform the Board in case of legal fee paid to the attorney over Rs

2 million.

20.5. The Board deliberated and agreed with the

recommendations of Chairman.

Decision

20.6. The Executive Board endorsed exercise of full powers by the Chairman NHA as provided under Clause-58 Chapter Six of NHA

Code-2005 for engagement and remuneration of lawyers for NHAcases. However, all cases where Chairman approve legal fees over Rs 2million will be brought to the notice of Board in subsequent meetingfor information.

Action By : Member (Admn)

21. Additional Agenda Item-II

PC-I for Land Acquisition, Affected Properties

Compensation & Relocation of Utilities for

Construction of Lahore Eastern Bypass Project (LEBP)

Proposal

21.1. The Executive Board is requested to recommend the PC-I

for land acquisition, affected properties compensation & relocation of

utilities for construction of Lahore Eastern Bypass Project (LEBP) at a

cost of Rs. 6,193.96 million for approval of CDWP/ECNEC.


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Deliberation

21.2. The Member (Planning) presented the case with reference

to the decision taken by the Prime Minister for the project to be taken

up by NHA as mentioned in letter No. LDA/DG/PS/134 dated Mar 22,

2014 of Lahore Development Authority (Annex-C). He, then briefed the

Board about salient features of the project that originates from

Kalashah Kaku Interchange on GT Road (N-5) and after following a

virgin alignment will terminate at Lahore Ring Road, almost 3.62 km

from Ravi Interchange.

21.3. The Chairman informed the Board that the project will be

integrated with Mughal Gateway Project and cater for traffic from M-2,

Gujranwala, Shahdara, Lahore and its adjacent towns; resulting in

smooth traffic flow and reduced congestion. Moreover, this project also

includes almost 1000 meter long 8-lane bridge over River Ravi, which

is a challenging task in itself.

21.4. The Member (Planning) explained that tentatively 2,672

Kanals (334 Acres) of land acquisition is involved with an approx cost

of Rs 6 billion.


Decision

21.6. The Executive Board recommended the PC-I for landacquisition, affected properties compensation & relocation of utilities

for construction of Lahore Eastern Bypass Project (LEBP) at a cost of

Rs 6,193.96 million for approval of CDWP/ECNEC.



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22. Additional Agenda Item-III

PC-I for Construction of Multan - Sukkur Section of

Karachi - Lahore Motorway (387 km)

Proposal

22.1. The Executive Board is requested to recommend the PC-I

for construction of Multan - Sukkur Section of Karachi - Lahore

Motorway (387 km) at a cost of Rs 238,756 million for consideration of

CDWP/ECNEC.

Deliberation

22.2. The Member (Planning) presented the case and briefed

that alignment runs almost parallel and in close proximity of existing

4-lane National Highway (N-5).

22.3. The Member (Planning) also explained that the

Government of China through EXIM Bank is providing 90% of the

funding, as a loan, amounting to Rs 214,880 million (approx). The

remaining 10% of the project cost will be met through PSDP. Thus the

overall cost will become Rs 238,756 million (approx).

22.4. The Board deliberated and agreed with the proposal.

Decision

22.5. The Executive Board recommended the PC-I for

construction of Multan - Sukkur Section of Karachi - Lahore

Motorway (387 km) at a cost of Rs 238,756 million for consideration of CDWP/ECNEC.


23. Conclusion

23.1. The Chairman wrapped up the meeting by thanking the

Board Members for their active participation and useful input.

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EXTRACTS

DRAFT MINUTES OF THE

235th EXECUTIVE BOARD MEETING

MAY 22, 2014 AT ISLAMABAD

236 executive board meeting of nha

Documents