223 Executive Borad Meeting of NHA

NHA Executive Boards Confirmed Minutes
NATIONAL HIGHWAY AUTHORITY

Secretariat Section
CONFIRMED MINUTES
Subject:-
223rd Meeting of the NHA Executive Board Held on

November 7, 2012 at Islamabad
1.
Introduction
1.1.
The 223rd meeting of the Executive Board of the National
Highway Authority was held at 1030 hours on Nov 7, 2012 at the NHA
Head Office Auditorium, Islamabad. Mr Muhammad Javaid Iqbal
Awan, 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 participants
and thanked them for sparing time for NHA. The last meeting was
held only on Oct 16, 2012 but urgency of some matters warranted
convening of this meeting after a short gap.
2.2.
The Chairman greeted Mr Zafar Abbas Lak, IG (NH&MP)
and Mr Joudat Ayaz, JS (MoC) on performing Hajj and wished best of
luck to Mr Tahir Sharif, Chief (NTRC), who is soon going to retire from
the government service on superannuation. Mr Sharif contributed
significantly during Board proceedings and his guidance & wisdom
would be definitely missed.
2.3.
The Chairman updated the Members on some important
developments since the last Board meeting. The most important was
the briefing of the President of Pakistan on Nov 2, 2012 at Karachi on
some projects of strategic importance in Sindh including the politically
and economically vital Karachi - Hyderabad Motorway (M-9).
223rd Meeting, November 7, 2012, Islamabad
2.4.
NHA has issued termination notice to M/s Bina Puri for
M-9 because of failure on their part to achieve financial close and this
notice will become effective on Dec 10, 2012. NHA could have
extended the financial close period but for visible lack of interest on
the part of the BOT Concessionaire. M/s Bina Puri was granted a
meeting for detailed deliberations on request but they did not turn up.
2.5.
The course of action for proceeding further in the matter
is now under contemplation. The Employees Old-Age Benefits
Institution had participated in the original bidding process but could
not be technically qualified. EOBI is again interested in undertaking
this project and legal / technical evaluation to this effect is in hand.
2.6.
The President was informed about above developments
with the suggestion that if EOBI presents legal enablement to lead the
local consortium duly reconstituted / strengthened to qualify
technically and participates in fresh bidding or submits an alternative
acceptable proposal, the work can commence in three months.
2.7.
The President accepted the above line of action with
directions that the process should be completed at top speed. In case
of failure on the part of NHA to execute the project on BOT basis, the
GoP will make an endeavor to provide PSDP funds.
2.8.
The President was also briefed on the status of Qazi
Ahmed - Amri Bridge across River Indus, the modified PC-I of which
was recommended for submission to CDWP/ECNEC by the Executive
Board in its 222nd meeting held on Oct 16, 2012. The Chairman stated
that he personally inspected the project in detail and the progress on
ground is reasonably satisfactory.
2.9.
It was suggested that this Bridge needs to be connected
with Makran Coastal Highway through Kirthar Range being the
quickest and safest option for linkage with Gwadar Port. If the
suggestion is approved, major adjustment in the alignment of planned
Hub-Dureji-Dadu Road (M-7) will be required. The President desired
the matter to be analyzed in depth.
2.10.
The President was also updated on construction of
Hyderabad - Badin via Mirwah - Sanjar Chang Road; which would
link remote areas of Sindh. Project will be completed and ready for
opening by Dec 31, 2012.
2.11.
Another project covered was construction of Larkana Mohenjodaro Road upto Airport. The President was perturbed by the
slow progress on this project and directed the Minister (C) to
personally review the same through helicopter and coordinate
necessary steps / measures for its expeditious completion.
2.12.
The Chairman also talked about the Lyari Expressway
Project Karachi, southbound carriageway of which was opened for
traffic as far back as in Feb-2008 but completion of balance 5.3 km
length of northbound carriageway is pending since long due to non
provision of Right-of-Way (RoW) to NHA by the provincial government.
In order to minimize dislocation of local population, it is planned to
construct elevated flyover through partial realignment in this segment.
After necessary redesigning, NHA has asked FWO to remobilize. Along
side, the provincial government is taking steps for acquisition of bare
minimum RoW entailing dislocation of around 600 houses only. The
President is likely to grace the recommencement of work ceremony
within the next few weeks.
2.13.
The Chairman apprised the Board that after remobilizing
at site, the contractor for Lowari Tunnel Project, M/s SAMBU has
recommenced construction activities. The Prime Minister is likely to
grace the recommencement of work ceremony for this project within
the next few weeks.
2.14.
The Chairman also talked about the meeting of the Senate
Sub-Committee on Finance held on Oct 19 & 22, 2012 for review of
NHA projects. The Committee was informed that NHA is very clear
about the issues being faced on various projects and can tackle the
same except that security issue in Balochistan needs immediate
attention of the Federal & Provincial Governments. The Minister for
Finance had held meeting with the Reps of GHQ where an understanding was reached that appropriate security would be provided on
important NHA projects in Balochistan.
2.15.
The Chairman further conveyed that Planning Wing
(P&CA Section) is in the process of procuring contracts for various
packages under the ADB assisted Flood Emergency Reconstruction
Project (FERP). Progress in this regard is quite reasonable and the
ADB has also expressed satisfaction.
2.16.
The Member (Planning) NHA added that out of total 39
packages under FERP, 9 have been awarded, concurrence of ADB for
award of 5 has been received and the balance packages, which include
that advertised under International Competitive Bidding (ICB), are in
various advance stages of procurement. It is anticipated that all
packages will be awarded by Jan-Feb 2013 for completion before the
loan closing date in 2014.
FORMAL BOARD PROCEEDINGS
3.
Agenda Items
3.1.
The Secretary NHA stated that 12 x working papers were
distributed in three volumes. Vol-I containing one working paper was
circulated on Oct 31, Vol-II with nine on Nov 2 & Vol-III with two
working papers on Nov 5, 2012 respectively. The last volume also
contained revised working paper for Agenda Item 10. Subject-wise
distribution is as follows:Matter
No
a.
Minutes
b.
BOT Projects
c.
Award of Works
d.
Construction Works
e.
Provision of Incentive
f.
NHA Budget
g.
Admin Matter
Total
4.
12
Agenda Item 1
Confirmation of Minutes - 222nd Meeting of the
Executive Board Held on Oct 16, 2012
4.1.
The Secretary NHA solicited confirmation of minutes of
the 222nd Executive Board meeting held on Oct 16, 2012 conveying
that the same were circulated on Oct 31, 2012 and no written
comments/observations have been received from any Member.
4.2.
Minutes were accepted for confirmation with some
amendments suggested by the Chief (T&C).
Decision
4.3.
The Executive Board confirmed minutes of 222nd meeting
held on Oct 16, 2012 with following amendments:a.
In Agenda Item 5 titled Overlay and Modernization

of Lahore - Islamabad Motorway (M-2) on BuildOperate-Transfer (BOT) Basis add following note
after Para-7.20 under the head Decision:Note. Since the Finance Division has issued Dollar
denominated Sukuk in international capital
market & Rupee denominated Sukuk in local
capital market, against Motorway (M-2), NHA
on Oct 22, 2012 referred the matter to MoC
with the request to approach Finance Division
to seek clearance for NHA to proceed ahead
with the subject BOT process.
b.
In Agenda Item 12 titled Modified PC-I for Amri Qazi Ahmed Bridge Across River Indus (Between
Hyderabad Bypass and Dadu - Moro Bridge)
Connecting N-5 with N-55 replace existing Para14.16 with the following:14.16.
c.
Matter was discussed and cleared.

However, it was finally decided that to
save on time NHA would include Rs 400
million in the project cost for raising of
protection bund and submit the PC-I to
the Planning Commission where this cost
will be rationalized after detailed scrutiny.
In Agenda Item 12 discussed above, amend the

contents of line 4 of Para-14.18 under the head
Decision, as follows:For:
Read:
Rs 6892.11 million
Rs 7292.11 million
d.
In Agenda Item 12 discussed above, delete Para14.19 under the head Decision.
e.
Add the following new Para-18 before the head

Conclusion:18.
Tribute to Mr Muhammad Ali Gardezi, Former

Chairman NHA
18.1. Mr Muhammad Ali Gardezi, a BS-21 officer of

Pakistan Administrative Service, served as the
Chairman NHA on deputation from Jul 6, 2011
to Oct 2, 2012. During his 15 months tenure Mr
Gardezi throughout endeavored and worked
untiringly to improve the working system of
NHA. When he joined, NHA was in poor
financial health and the situation warranted
special steps / measures. When Mr Gardezi
left in Oct-2012, the general situation of NHA
projects and the reputation of NHA improved
substantially in the eyes of general public,
stakeholders and decision makers.
18.2. The Executive Board unanimously resolved to
pay glowing tributes to Mr Muhammad Ali
Gardezi for the services rendered and the
quality leadership provided by him as the
Chairman NHA. His contribution and untiring
efforts would be long remembered. The Board
wished him best of luck and success in his
future career and the times ahead.
Action By
f.
Renumber existing Para-18

Conclusion as Para-19.
Secretary NHA
under
the
head
5.
5.1.
5.2.
Agenda Item 2
Construction of Khanewal - Lodhran (Bahawalpur)
Access Controlled Expressway on BOT Basis
Khanewal-Lodhran (E-5).
a.
Khanewal-Lodhran (Bahawalpur), access controlled

expressway, will traverse Khanewal, Vehari, Lodhran
and Bahawalpur Districts on a new alignment.
b.
It will start from Multan Interchange of Motorway

(M-4, Extension); 5 km from Shamkot Interchange
on National Highway (N-5), short of toll plaza near
Khanewal City and terminate at Lodhran Bypass.
c.
It is a part of NTC (National Trade Corridor), envisioned

to link and serve as the major transportation route
for north-south traffic of the country, reducing time
and providing a safe and controlled access passage.
Construction Scope.
a.
b.
c.
d.
e.
f.
g.
h.
103 km, 4-lane divided fenced expressway.

13 x bridges.
62 x vehicular box culverts.
7 x interchanges.
223 x culverts.
Drainage and protection works.
Rest/service areas & toll plazas.
Apart from civil works, scope of work includes:i.
ii.
iii.
5.3.
Land acquisition.
Resettlement.
Consultancy for contract supervision.
PC-I. Approved by ECNEC on Feb 3, 2012:a.

b.
c.
d.
Construction Cost
Project Cost *
Construction Period
Internal Rate-of-Return
:
:
:
:
Rs 18.389 billion
Rs 24.58 billion
45 months
20%
* Project cost includes cost of land, resettlement, etc.
5.4.
Proposal. NHA Executive Board is requested to approve:a.
Implementation of Khanewal - Lodhran Expressway

Project through Public-Private-Partnership (PPP)
under Build-Operate-Transfer (BOT) arrangement.
b.
Outsourcing preparation of commercial feasibility

study mandatory for floating a BOT project.
Boards Deliberations
5.5.
The Member (MW/PPP) presented details.
5.6.
The Board Members made the following observations:a.
Project was originally planned through World Bank

funding. Current status of Banks commitment?
(JS MoC)
b.
Project viability now that NHA is also constructing

Khanewal - Multan extension of Motorway (M-4)?
(Chief - NTRC)
c.
NHA is calling some new projects as motorways &

other few expressways. How this distinction is made?
(Chief - T&C)
d.
5.9.
A motorway standard road will ensure free & fast

traffic flow and also enhanced safety besides making
the project attractive for investors. (AS - Finance)
The Member (MW) rendered following clarifications:a.
Project is no more included in the World Banks plan

as, around two years back, the Bank decided not to
Finance any new NHA project. NHA had previously
received funds for land acquisition for Khanewal Lodhran Expressway but since the project was
placed on low priority and also no PSDP allocation
for construction was made available, the funds for
land acquisition were returned.
b.
Proposed expressway provides direct and shorter

connectivity between Bahawalpur - Khanewal for
traffic coming from Karachi & vice versa and the
existing & futuristic traffic volume warrant that this
project may be constructed, as planned.
c.
Motorways are constructed on higher specifications

at higher cost for enhanced speed. Nomenclature of
such projects depends upon the desire of the sitting
government and also overall resource position. Toll
rates on motorways are relatively higher than that
charged on expressways. In case of motorways, the
commuters need to have a choice of traveling on an
alternate road with no or lower toll.
5.10.
The VP-NESPAK observed that NHA has named Gwadar Ratodero Road as Motorway (M-8) despite the fact that it is a two lane
facility only; therefore, it is desirable if the word motorway is used
instead of an expressway for all access controlled facilities so that
people of different provinces do not suffer from a sense of deprivation.
5.11.
The Secretary NHA added that the Prime Minister of
Pakistan had sometime directed that this project would be called
Khanewal - Lodhran (Bahawalpur) Motorway (M-5).
5.12.
The VP-NESPAK added that past experience of NHA for
undertaking mega projects on BOT basis is not that promising.
Despite the apparently good economic rate-of-return, the BOT
concessionaires fail to achieve financial close. Lately, this happened in
the case of Motorway (M-9). The GoP share in the shape of land is not
a sufficient collateral, the need for NHA is to add funding (minimum
20%) to make BOT projects attractive for the prospective investors to
produce a bankable document before the lending institutions.
5.13.
The AS (Finance) endorsed the above views with remarks
that while offering BOT projects, the overall cost, traffic count /
forecast, anticipated revenue, FIRR, EIRR, etc, should be carefully
calculated to arrive at dependable figures.
5.14.
The Chief (T&C) observed that PC-I for construction of
Khanewal - Lodhran Access Controlled Expressway through GoP
funding was approved by ECNEC in Feb-2010 and a token allocation
was also made. Undertaking this project on BOT basis entails a major
deviation from the approved policy decision and would thus require a
fresh reference to ECNEC.
5.15.
The Member (MW) submitted that the highest forums of
Pakistan have directed NHA to maximize projects on BOT basis and
this project appears to be a good prospect.
5.16.
The Chairman remarked that keeping in view traffic
needs, construction of this project is of high importance. For informed
policy decision to undertake it on BOT basis commercial feasibility
study is an essential pre-requisite and permission for the same may
be granted.
5.17.
The Chief (NTRC) endorsed this statement with remarks
that commercial feasibility study will decide whether or not it would
be possible to undertake this project on BOT basis.
5.18.
Decision
5.19.
The Executive Board approved outsourcing preparation of
commercial feasibility study for determining the viability of undertaking Khanewal - Lodhran Motorway Project (M-5A) on BOT basis.
Action By
6.
Member (Motorway/PPP)
Agenda Item 3
Conversion of Existing Lodhran - Sukkur 4-Lane
Highway into 6-Lane Expressway (E-5) on BOT Basis
Introduction - Working Paper

6.1.
Introduction.
a.
Lodhran - Sukkur is a part of NTC (National Trade

Corridor), envisioned to serve as major transportation
route for north-south traffic of the country, reducing
time & providing a safe access controlled passage.
10
b.
6.2.
Scheme envisages rehabilitation / upgradation of

existing Lodhran - Sukkur Section (385 km) of
National Highway (N-5) into a 6-lane expressway.
Scope of Works.
a.
Rehabilitation and upgradation of existing 4-lane

highway.
b.
Construction of one additional lane in median on

each side, making a 6-lane divided expressway.
c.
Provision of fence on both sides to ensure access

control and also service road on both sides.
d.
Construction of new bypasses, wherever required.
6.3.
Status. Survey completed but design work is yet to be
awarded. After completion of design, land acquisition, wherever
required, will be taken up.
6.4.
Implementation of Lodhran - Sukkur Expressway

Project through Public-Private-Partnership (PPP)
under Build-Operate-Transfer (BOT) arrangement.
b.

6.5.
The Member (MW/PPP) presented details.
6.6.
The AS (Finance) observed that NHA has proposed
construction of Khanewal - Lodhran as a 4-lane expressway whereas
Lodhran - Khanewal has been proposed as a 6-lane expressway. Being
the main north - south artery and a component of the NTC, the
specifications of the two roads should be identical. He also cited the
example of Lowari Tunnel Project, the scope of which was enhanced
midway resulting not only in major increase in cost but also
substantial delay in completion and thus returns to the economy.
11
6.7.
The Chief (T&C) remarked that the Faisalabad - Khanewal
Motorway (M-4, 184 km) was also approved as a 4-lane facility with
the provision of addition of 2-lanes at a later stage as per traffic needs,
but, RoW was kept as 100 m to ensure smooth upgradation.
6.8.
The Chairman NHA clarified that though the project has
been presented as a 6-lane facility; it will be only after conducting a
commercial feasibility study that the exact specifications required
would be known.
6.9.
Decision
6.10.
commercial feasibility study for determining the viability of undertaking Lodhran - Sukkur Motorway Project (M-5B) on BOT basis.
Action By
7.
Agenda Item 4
Construction of an Underpass in Front of Mardan
Medical Complex at Km 17+600 (N-45) on BOT Basis

7.1.
Introduction.
a.
N-45 originates from Nowshera and culminates at

Chitral traversing Mardan, Malakand, Chakdara, Dir
& Lowari Pass (309 km). Initial segment of N-45 upto
Mardan is 4-lane and the balance length (2-lane).
b.
Mardan Medical Complex at km 17+600 (N-45) is the

major source for health facilities in Mardan Division.
Daily 2,000 to 3,000 patients avail its OPD facility.
Commuters frequently cross the road; which causes
traffic hazard and accidents.
12
c.
Situation demands provision of an underpass at this

location. On an application, presented by the elders
of Mardan District, the Minister for Communications
endorsed put up as a special case.
7.2.
BOT Arrangement. NHA plans to undertake construction
of the underpass on Build-Operate-Transfer basis. It is envisaged that
some private party will finance the project and recover its investment
along with reasonable profit through rents of shops to be constructed
in the underpass.
7.3.
Construction of an underpass in front of Mardan

Medical Complex at km 17+600 on National Highway
N-45 on BOT basis.
b.

7.4.
The Member (MW/PPP) presented details. He added that
NHA constructed a similar underpass on N-5 in Gujjar Khan urban
area on BOT basis and that project has proved quite successful.
7.5.
Decision
7.6.
commercial feasibility study for floating the project Construction of
an Underpass in front of Mardan Medical Complex at km 17+600 on
National Highway (N-45) on BOT basis.
Action By
13
8.
Agenda Item 5
Construction of Chak Jhumra Interchange on Pindi
Bhattian - Faisalabad Motorway (M-3)

8.1.
8.2.
Background.
a.
Construction of Pindi Bhattian-Faisalabad Motorway

(M-3) resulted in crossings with other roads and
traffic conflict. A number of flyovers & interchanges
were constructed to facilitate crossings of through
and cross traffic.
b.
Flyover No 7 was constructed on Chiniot - Chak

Jhumra - Jaranwala Road crossing M-3 at km 40
with plan to upgrade it to an interchange, as & when
warranted on traffic grounds.
c.
There are no infrastructural features at this crossing

for turning movements of traffic intending to access
or exit M-3. Proposed upgradation of Flyover No 7
will serve this purpose & help eliminate considerable
loss of commuting time and higher vehicle operating
and social costs.
Scope of Work.
a.
b.
c.
8.3.
Construction of 2x loops and 2x ramps.

Construction of 6x new culverts.
Remodeling/repairing of 3x existing culverts.
Salient Features of the Carriageway.

a.
b.
c.
Lane
Shoulder
Pavement
= 3.65m on each side of DCW loops

= 3.05m on both sides of DCW loops
=
Description
i.
ii.
iii.
Asphalt Wearing Course

Aggregate Base Course
Granular Sub-base
Lane
(mm)
50
200
250
Shoulder
(mm)
50
200
250
14
8.4.
8.5.
8.6.
PC-I, PSDP Allocation & Engineers Estimate.

a.
PC-I of Rs 242 million was prepared inclusive of civil

works of Rs 206.250 million (CSR-2009 + 9.1%). The
Executive Board recommended (188th meeting of Apr 17,
2010) the same but it has not yet been approved by
CDWP and hence there is no PSDP allocation.
b.
NHA has now received Rs 100 million from Peoples

Works Program (PWP) hence procurement process
was initiated after rationalizing Engineers Estimate
by reducing the scope of work. Cost of rationalized
PC-I is Rs 102.0313 million (CSR-2009 + 9.1%).
Previous Tendering Process.

a.
On receipt of directive from the PMs Sectt vide UO

No JS(CP)N-75/Dev/5649/453/09 dated Sep 16,
2009, procurement process was started. Notice for
pre-qualification of Contractors was published in the
press on Nov 19, 2009 and uploaded on NHA and
PPRA websites.
b.
Due to non-inclusion of the project in PSDP, the prequalification process was annulled and the project
kept pending.
Fresh Tendering Process.

a.
Notice for Invitation for Bids with an estimated cost

of Rs 95 million was published in the press and
uploaded on NHA and PPRA websites on Jul 5, 2012.
b.
Since the Engineers Estimate was to be rationalized,

considerable time was required by the in-house
designer to remodel loops & ramps. Corrigendum-1
was advertised through press on Aug 11, 2012 and
NHA/PPRA websites with following features:-
15
i.
ii.
iii.
iv.
v.
vi.
vii.
8.7.
Estimated Cost
Bidding Procedure
PEC Category
Specialization
Documents Purchased
Pre-bid Meeting
Bid Opening
:
:
:
:
:
:
Rs 102 million
Single StageTwo Envelope
C-3
CE-01
Twenty (20) Firms
Aug 15, 2012
Aug 29, 2012
Opening of Technical Proposals/Evaluation.

a.
On extended/re-scheduled date of Aug 29, 2012,

eleven (11) firms submitted Technical (Envelope-A) &
Financial Bids (Envelope-B) within given time.
b.
After evaluation of Technical Proposals, eight (8)

firms meeting criteria set in bidding documents were
technically qualified for opening of Financial Bids.
c.
Summarized status:Document Purchased (M/s)
Legends
Pre-qualified
--
--
---
1.
Saadullah Khan & Bros
SKB
2.
Ch Construction Co
CCO
3.
Luqman Brothers
4.
Nazir & Co
5.
Abdullah Khan & Co
6.
Ch Abdul Ghafoor Goheer
7.
Airrs Associates
8.
Mohandisin-e-Masud
M-e-M
9.
Mishal Sania (Pvt) Ltd
Mishal
Luqman
--Abdullah
CAGG
---
10.
Standard Construction Co
11.
JABCO (Pvt) Ltd
SCC
---
8.8.
Financial Proposals. Opening of Financial Proposals was
scheduled on Sep 5, 2012 and all technically qualified bidders were
informed. The Bid Opening & Evaluation (BO&E) Committee declared
the following bids as non-responsive:-
a.
b.
Messers
CCO
SCC
Rupees
119,813,358
141,956,847
16
8.9.
Comparative Status.
Lowest
Ranking
1st
2nd
3rd
4th
5th
6th
(1)
(2)
(3)
8.10.
8.11.
Messers
Bid (Rs)
CAGG
Abdullah
M-e-M
SKB
Luqman
Mishal
108,086,240
114,083,456
120,652,830 (1)
114,962,182
135,537,871
149,525,220 (2)
Final Bid
(Rs)
108,086,240
114,083,456
114,620,188
114,962,182
135,537,871
146,854,700
Variation
(3)
+5.78%
+11.65%
+11.76%
+12.54%
+32.65%
+43.72%
Rebate 5% on all items.

Rebate 1.786% on all items except provisional sums.
Vis--vis EE of Rs 102,180,325/- (CSR-2009 + 9.1%).
Issues Concerning Lowest Announced Bid.

a.
M/s CAGG instead of writing the rates in words for

each item in the column provided for it in the BoQs
actually wrote the line item total (amount as a result of
multiplying rates with quantity) in words in that column
for all items of BoQs.
b.
Another discrepancy was that for various items the

total written in figures and words was different, as
explained in Annex-B. Therefore, bid of M/s CAGG
was declared non-responsive.
c.
No significant mistakes or corrections were observed

in the rest of bids.
Options. The BO&E Committee was left with 2 options:I.
Annul entire bidding process & invite fresh bids.
II.
Works be awarded to the next lowest evaluated

bidder M/s Abdullah at their evaluated bid price of
Rs 114,083,456/- at +11.65% the estimate.
17
8.12.
Recommended Option. Carefully considering the pros &
cons of above two options, particularly in view of huge gap of Rs 5.997
million between the lowest evaluated responsive bid and lowest
announced bid, the BO&E Committee recommended Option-I.
8.13.
Instructions of Chairman NHA.

a.
Matter regarding the lowest announced bid of M/s

CAGG was discussed in the Office of Chairman NHA
who remarked This is not a substantive mistake.
Accept an undertaking. Approved for consideration.
b.
The Contractor should provide an undertaking to

accept the discrepancies pointed out by the BO&E.
8.14.
Recommendation. The Tender Acceptance Committee has
recommended award of works to the lowest announced bidder M/s
CAGG at their bid price of Rs 108,086,340/-.
8.15.
The Member (Planning) presented details. The GM (P&CA)
and GM (Design-1) were also present.
8.16.
The Members made the following observations:a.
Pavement thickness suggested for the carriageway is

on the lower side and will not be able to take load of
heavy traffic. (VP-NESPAK)
b.
Detail as to how the PC-I cost was rationalized has

not been provided. Even if the project is to be funded
through PWP, the PC-I will have to be processed and
got approved before award of works. (Chief - T&C)
c.
NHA should not compromise on its standard and

follow approved specifications. (Chief - T&C)
18
d.
Original PC-I of Rs 242 million was recommended by

the Board but NHA reduced the cost to Rs 102
million without taking the Board in to confidence by
compromising the scope of work despite the fact that
the interchange will become an integral part of the
motorway network. This needs to be investigated /
explained. (AS - Fin)
e.
Based on past experience, the end cost of the project

will be much higher, as such; NHA needs to explain
from where the difference in cost will be met. (AS - Fin)
f.
Since the interchange is located on M-3, NHA should

endeavor not to compromise on its specifications
otherwise this facility will be a mismatch. (JS - MoC)
g.
A proper interchange is needed at this location from

traffic viewpoint. (IG - NH&MP)
8.17.
Following clarifications were rendered by Member (Plg)
and GM (Design-1):a.
Proposed interchange is essentially needed from

traffic viewpoint. The need has become more
pronounced now with the plan to construct Syedwala
Bridge across River Ravi and all traffic from
Faisalabad, Sargodha, Jhang and other areas
heading towards this bridge & vice versa shall be
using this interchange.
b.
A bridge on M-3 at Chak Jhumra already exists.

Initially, it was planned to upgrade it to a NHA
standard interchange but due to non-availability of
PSDP allocation this plan could not materialize. The
specifications including that of carriageway (loops)
were lowered to bring the cost close to the amount
received by NHA from PWP with the efforts of the
local MNA Mr Tariq Bajwa. The MNA has been
requested to use his good offices for provision of
additional Rs 20 million from PWP.
19
c.
NHA is fully alive to the fact that lowering of specs for

a facility located on the motorway network is not
desirable but non-provision of PSDP funds on one
hand and insistence of the local political leadership
for provision of an interchange at priority on the
other prompted the decision to lower specifications.
d.
The MNA who is persuading this project has already

performed the groundbreaking and has also rendered
an assurance that he will coordinate provision of
land required without any cost to NHA.
e.
NHA follows different categories of specifications for

its projects that may vary according to the nature &
volume of traffic. NHA standard specs have not been
compromised while rationalizing the PC-I because
the same cross sections have been adopted on
various M-2 Interchanges including Islamabad,
Balkassar, Chakri, Lillah & Hiran Minar
f.
Besides reducing paved width, cost has been

rationalized by deleting ancillary facilities, standard
toll plaza and related admin buildings, etc. Note.
Item-wise breakup of the original & revised cost is at
Annex-C.
g.
Current bid for Phase-I works is only +5.78% the

estimated cost (CSR-2009 + 9.1%) & is quite reasonable.
Since, CSR-2011 has now been approved; cost will
increase substantially if the project is re-advertised.
h.
NHA may be allowed to undertake this project in

phases, as per availability of funds. Phase-I may be
implemented through PWP and Phase-II through
PSDP if additional funds through PWP are not made
available. PC-I will be processed and got approved as
directed.
8.18.
Matter was discussed and NHA was allowed to undertake
the project in two phases.
20
Decision
8.19.
The Executive Board approved award of works for
Construction of Chak Jhumra Interchange on Pindi Bhattian Faisalabad Motorway (M-3) to the lowest announced bidder M/s Ch
Abdul Ghafoor Goheer at their bid price of Rs 108,086,340/- (Rupees
one hundred & eight million, eighty six thousand, three hundred & forty) only;
which is +5.78% the estimate of Rs 102,180,325/- (CSR-2009 + 9.1%)
subject to approval of PC-I.
8.20.
The Board directed that the allied facilities of the
interchange omitted because of paucity of funds be constructed in the
next phase as per NHA standard specifications for motorway network
on availability of funds.
Action By
9.
Member (Planning)
Agenda Item 6
Award
of
Work
Under
Flood
Emergency
Reconstruction Project (FERP) : NCB-N-07 Rehab of
Chakdara - Kalam Road (N-95), NCB-N-07 Pack-II:
Madyan to Bahrain (Km 89+700 to 97+310)

9.1.
9.2.
Introduction/Source of Funding.
a.
Pakistan has received a Loan No Pak-2742 from the

Asian Development Bank (ADB) towards the cost of
Flood Emergency Reconstruction Project (FERP).
b.
Rehab of Chakdara Kalam Road (N-95), NCB-N-07

Pack-II: Madyan to Bahrain (km 89+700 to 97+310)
is included in Phase-I of FERP.
Global PC-I of FERP.

a.
Global PC-I of FERP based on DNA (Damage Need

Assessment)
study conducted by NESPAK was
presented before ECNEC on May 26, 2011. ECNEC
approved it, in principle, with following instructions:-
21
The ECNEC considered the summary dated May 4, 2011

submitted by the Planning Commission titled Rehabilitation of
National Highway Network Damaged due to Unprecedented
Monsoon Rains & Flash Floods 2010 and approved the project,
in principle, and authorized Dy Chairman Planning Commission
/ Chairman CDWP to approve the reviewed scope and cost of
project duly vetted by the high level Committee constituted by
the CDWP.
b.
Revised PC-I is under preparation and included in

the deliverables of 3 x design consultants.
9.3.
Engineers Estimate. Rs 723,053,758/- (CSR 2009+ 9.1%).
9.4.
Tendering Process.
a.
NHA and ADB agreed that the procurement of

subject works shall be made on Single-Stage-TwoEnvelopes Basis for civil works in accordance with
ADBs guidelines.
b.
Escalation shall not be applicable on contracts of

12 months or less duration. Being 12 months
project, escalation is not applicable in this case.
c.
Advertisement for Invitation of Bids (IFB) was

published in the press and displayed on NHA and
PPRA websites on May 24, 2012. Bid documents
were procured by sixteen eligible firms or JVs.
d.
Six (6) firms submitted technical and financial bids

on the due date viz Jun 13, 2012:Messers
i.
ii.
iii.
iv.
v.
vi.
Frontier Works Organization

National Logistics Cell
Ikan Engg Services (JV) Ch A Latif &
Sons
Khattak Allied Construction Co
Shah Zaman (Pvt) Ltd (JV) AM & Co
Zahir Khan & Bros (JV) Techno Time Con
Legends
FWO
NLC
Ikan (JV)
CALSON
Khattak
SZ (JV) AMC
ZKB (JV) TTC
22
9.5.
Technical Evaluation.
a.
Technical bids were opened on Jun 13, 2012 by the

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

qualification criteria stipulated in bid documents.
Bids at sl ii to v were evaluated as unqualified.
c.
Technical Bid Evaluation Report was approved by

ADB on Oct 5, 2012.
9.6.
Financial Bids. Financial bids were opened on Oct 9, 2012
in the presence of BO&E Committee. Quoted/announced bids:a.
b.
Bidder (M/s)
ZKB (JV) TTC
FWO
Rupees
861,417,500
1,203,596,449
9.7.
Financial Evaluation. Bids were evaluated in accordance
with ADBs standard procedures. There were no typographic or
arithmetic errors. However, FWO offered 5% discount on the bid; so
the final bid amounts emerged as under vis--vis the estimate of Rs
723,053,758/- (CSR 2009 + 9.1%):Lowest
Ranking
Messers
Final Bid (Rs)
Variation
1st
ZKB (JV) TTC
861,417,500
+19.14%
2nd
FWO
1,143,416,627
+58.14%
9.8.
ADBs Concurrence. Priced Bid Evaluation Report was
forwarded to ADB for review and concurrence on Oct 11, 2012. ADB
issued NOC for award of works to M/s ZKB (JV) TTC.
9.9.
Recommendation. Tender Acceptance Committee has
recommended award of works to M/s ZKB (JV) TTC.
9.10.
The Member (Planning) presented details. The GM (P&CA)
was also present.
23
9.11.
The Chief (T&C) made the following observations:a.
Basic info regarding the project including exact scope

of work on which the Engineers Estimate is based is
missing. Such info should invariably be provided in
working papers seeking approval for award of works.
b.
Global PC-I is yet to be approved, therefore, award of

works shall be subject to completion of codal
formalities with no deviation from approved PC-I.
c.
Escalation in this case is not applicable, proposed

contract being of 12 months duration. How this issue
will be addressed in case of delay?
d.
Reasons for disqualifying 4 bidders including NLC?
e.
According to Rule-31 of PPRA Rules-2004, no bidder

is allowed to alter or modify the bid after opening;
however, the procuring agency may seek and accept
clarifications that do not change substance of the bid
in writing. In this case, FWO offered 5% rebate on
their bid. NHA should ensure that no violation of
Rule-31 is involved.
9.12.
The Chief (NTRC) remarked that ADB will subsequently
not allow any alteration in contract clauses, as such, it is desirable if
the completion period in extended to 15 months as the project is
located in a difficult terrain with restricted working season.
9.13.
Following clarifications were rendered:a.
The scope of work is precisely, as follows:i.

ii.
iii.
iv.
v.
vi.
vii.
Project length (7.61 km).

Road width (6.1 m).
Shoulder width (1 m concrete).
Reinforced cement concrete breast walls.
Gabion protection where required.
Plum concrete.
Formation of embankment (rock fill).
24
viii.
ix.
x.
xi.
xii.
b.
9.14.
Wearing course.
Asphalt base course.
Aggregate base course.
Sub base and sub grade.
Retaining walls.
Four bids were declared technically non-responsive /

disqualified for the following reasons:Messers
Reason
i.
NLC
Bid security validity
ii.
Ikan (JV)
CALSON
Failed in financial criteria and requisite

criteria of two completed projects missing
iii.
Khattak
Deficient quantity of concrete in key

activities (disqualified by ADB)
iv.
SZ (JV)
AMC
Requisite criteria of two completed projects

missing
c.
According to ADB guidelines, escalation is allowed in

projects of 18 months or more duration only.
d.
It is confirmed that there is no violation of Rule-31 of

PPRA Rules and that 5% discount was offered by
FWO as a integral component of their original bid.
Clarifications, where required, were sought from the
bidders in line with PPRA Rules and ADB guidelines.
The matter was cleared after detailed discussion.
Decision
9.15.
The Executive Board approved award of works for
Rehabilitation of Chakdara Kalam Road (N-95), NCB-N-07 Pack-II:
Madyan to Bahrain (km 89+700 to 97+310) to M/s Zahir Khan &
Brothers (JV) Techno Time Construction Co at the quoted / evaluated
bid amount of Rs 861,417,500/= (Rupees eight hundred & sixty one million,
four hundred & seventeen thousand, five hundred) only; which is +19.14% the
estimate (CSR-2009+9.1%) subject to completion of codal formalities.
Action By
Member (Planning)
25
10.
Agenda Item 7
Status Report: Improvement & Widening of Jaglot
Skardu Road (S-1)

10.1.
10.2.
10.3.
Introduction / Background.
a.
Jaglot - Skardu Road (S-1) takes off from Karakoram

Highway in Gilgit - Baltistan (GB) from outside Jaglot
town about 45 km short of Gilgit & ends at Skardu.
b.
Road was constructed by cutting almost vertical

mountains along the right bank of River Indus. It
has suffered heavy wear & tears due to frequent
rains, hill torrent crossings and land slides.
c.
Existing road width is 3.8 m to 4.2 m on straight and

4.5 m to 5 m in curved sections. This allows only one
way traffic. Thus incoming traffic has to either stop
to let the other vehicle pass or it has to cross with
one side wheels on shoulders.
Improvement & Widening Plan (S-1, 164 km).

a.
Plan is to upgrade the existing road as per NHA

standards and improve its geometry. PC-I for the
project Improvement & Widening of Jaglot - Skardu
Road (S-1) was approved by ECNEC on Dec 9, 2010
at the rationalized cost of Rs 22.154 billion.
b.
Project could not be undertaken through GoP

funding due to funding constraints.
Chronology of Events.
a.
A Memorandum of Understanding (MoU) was signed

on Jul 9, 2010 between NHA & M/s China
Gezhouba Group Int Engg Co (CGGC) during the
visit of the President of Pakistan to China.
26
b.
Notice was published in the national newspapers on

Aug 10, 2010 inviting proposals for the project on
Suppliers / Buyers Credit.
c.
M/s CGGCs technical team conducted site visit/

survey in Oct-2010 & prepared preliminary design/
estimate.
d.
Proposal of M/s CGGC on Suppliers/Buyers Credit

presented in 204th Executive Board meeting (May 14,
2011). The Board decided NHA to proceed ahead.
e.
M/s CGGCs 1st proposal of US$ 457.919 million

was negotiated by the Negotiation Committee from
Jan to Mar-2012 till a final cost of US$ 396.422
million was agreed.
f.
Negotiated price of US$ 396.422 million was

presented in 214th Board meeting (Mar 21, 2012). The
Board decided that NHA should first prepare revised
PC-I and seek permission of Planning Commission.
g.
A conditional commercial contract agreement signed

with M/s CGGC on Apr 30, 2012.
10.4.
Findings of Inquiry. An inquiry was conducted by MoC.
Findings are as follows:a.
Proposed MoU (before signing) was sent to Ministry of

Foreign Affairs (MFA), Finance Division, Ministry of
Defence and Ministry of Law & Justice for views/
comments vide MoC letter dated Apr 20, 2010.
b.
MFA conveyed no objection on Apr 28, 2010 from the

political viewpoint provided all codal formalities are
completed especially Articles 4 & 6 of the MoU.
c.
Finance Division advised on Apr 28, 2010 that

extending of guarantee by GoP may not be
committed at this stage. Terms of financing may be
referred to them (Finance Division) for prior clearance.
27
d.
10.5.
Ministry of Law & Justice conveyed on May 4, 2010

that such MoUs are against the principles of good
governance; which requires transparency and level
playing field. Direct contracting in this manner is
violation of the applicable laws and rules and MoC is
advised to follow PPRA Rules.
Directive of Ministry of Communications.

a.
It is matter of grave concern that the subject project

has been contracted with utter disregard to the
norms of transparency, without undertaking cost
rationalization with required degree of diligence.
b.
It is evidently intriguing that NHA hastened to sign

the subject MoU without first addressing clear
direction of the Prime Minister recorded on the
summary, which was mandatory, & later contracted
the agreement in spite of recorded objections raised
by NHA Board in its earlier meeting.
c.
PPRA
Rules
mandate
that
all
engineering
procurement contracts involving huge foreign
funding must be advertised in both local as well as
international media. Since in this case, tender
inquiry was floated only in the local newspaper, NHA
stands in clear violation of PPRA Rules, which
amounts to financial impropriety that may lead to
serious repercussions.
d.
Submission of final proposals and acceptance of the

same by NHA after a protracted period of 18 months
needs to be clarified.
e.
Both MoU and the contract agreement signed with

M/s CGGC in their present status in violation of the
prescribed procedures are legally not tenable and
need to be scrapped forthwith.
28
10.6.
f.
NHA must first get the approval of the competent

authority on the MoU signed with M/s CGGC.
Thereafter, fresh bids be invited adhering strictly to
PPRA Rules by advertising in internl/local media.
g.
Bids so received should be evaluated thoroughly by a

notified
committee
comprising
professionally
competent officers who must evaluate and rationalize
the cost item-wise.
h.
After obtaining formal approval of the Executive

Board, NHA may proceed to contract agreement with
the bidder whose bid is competitive on account of
cost and design efficiency.
i.
Bids so received should be evaluated in the light of

cost benchmark indicated by FWO in its letter
addressed to Secretary, MoC dated Aug 6, 2012.
j.
NHA should submit detailed report after doing the

needful.
Implementation Status.
a.
Conditional contract agreement withdrawn/revoked.

Letter to this effect issued on Oct 10, 2012.
b.
Tendering process annulled on Oct 17, 2012.
c.
MoC requested to process withdrawal of MoU from

competent forum.
d.
Fresh press notice issued in national newspapers on

Oct 20, 2012.
e.
Advertisement issued in national newspapers as well

as The Economist and also uploaded on NHA,
PPRA and PEC websites. Copy of advertisement also
forwarded to Pakistan Embassies in China,
South Korea, Turkey and UAE for uploading on
website and wide circulation among entrepreneurs,
construction companies and prospective financers.
29
f.
Request for Proposals (RFPs) includes a condition

that construction firm and Supplier/Buyer shall be
responsible for financing minimum 85% of total
development cost in the form of a Suppliers/Buyers
Credit with 15% balance to be shared by GoP where
GoP equivalent share shall be for FWO; which will be
a part of the consortium.
10.7.
Conclusion. Matter presented to apprise NHA Executive
Board for information and guidance, if any.
10.8.
The Member (Planning) presented details stating that PC-I
of the project will be revised.
10.9.
The Chief (NTRC) enquired as to what would be the width
of the road as the existing / anticipated traffic volume is not too high.
10.10.
The VP-NESPAK observed that the fresh advertisement by
NHA is similar to that previously issued except that it is being placed
in an international magazine also. The notice seeking requests for
proposal (RFPs) does not include project parameters / specifications;
which should have been given otherwise result would be the same.
10.11.
The Member (Planning) responded that RFPs have been
prepared on design-built basis and exact specifications as per NHA
standards would be negotiated with the successful bidder. Since the
project is located in a difficult terrain, lot of rock cutting would be
involved and this process causes destabilization of the mountains;
which take decades to stabilize. Therefore, road should be constructed
at an optimum width for rendering service for a long period of time.
10.12.
The Chairman remarked that the PC-I originally approved
did not contain a foreign exchange component, as such, it needs to be
seen whether authorization for adopting Suppliers / Buyers credit
mode would be required. The MoU was also not concluded between
the GoP and Government of China but was signed by NHA and M/s
CGGC and before any action its ratification by the Federal Cabinet
was necessary.
30
10.13.
The Chief (T&C) rendered following remarks:a.
NHA concluded conditional contract with M/s CGGC,

which was around +63% of the approved PC-I cost,
without taking Executive Board into confidence and
reason why this was done is not given in the working
paper & this is not a good reflection on NHA.
b.
NHA had originally proposed a PC-I of Rs 26.454

billion envisaging improvement, widening and
upgradation of S-1 to 7.3 m standard width with 1 ~
2.5 m shoulders on either side with allied structures.
c.
The CDWP considered the PC-I on Nov 3, 2010 and

directed that the project scope & cost be reviewed.
The cost was rationalized to Rs 24.935 billion but the
matter could not be placed afresh before the CDWP.
d.
Since the project was accorded high priority by GoP,

rationalized PC-I was placed before ECNEC meeting
of Dec 9, 2010 submitting that Government of China
has shown interest for financial assistance for the
project and an MoU has already been signed by both
the governments during President of Pakistan's visit
to China in Jul-2010. As per MoU, Chinese financing
would be not less than 85% of the project cost
through a credible bank of China against sovereign
guarantee of the GoP. Since funding is available,
ECNEC may approve the project, in principle.
e.
The ECNEC approved the project, in principle, while

constituting a sub technical committee to review the
cost; which was to be approved by the Dy Chairman
Planning Commission. NHA submitted two options of
which the estimated cost of Rs 22.154 billion was
finally approved by the Dy Chairman Planning
Commission on Oct 6, 2011 with reduced scope.
Project length was reduced to 155.554 km from 167
km inclusive of 25.144 km hilly portion and 130.41
km plain / rolling terrain. In hilly area, road width
31
was proposed as 6.1 m and in plain / rolling terrain

as 7.3 m with reduced width of shoulders ranging
from 0.60 m to 1.50 m on either side. Steel fencing
was also removed.
10.14.
The Executive Board appreciated the above resume and
concluded the discussion.
Decision
10.15.
The Executive Board reviewed the status report on the
project Improvement & Widening of Jaglot Skardu Road (S-1) and
supported NHAs action for a fresh advertised process.
Action By
11.
Member (Planning)
Agenda Item 8
Provision of Incentive for Technical Working Party-I
Attendees Similar to that of Members of NHA
Executive Board

11.1.
Introduction.
a.
In terms of Para-51, Chapter Two (Planning Process)

of NHA Code 2005, before administrative approvals of
PC-I and PC-II proformas or project documents as
well proposals of acceptance of necessity in respect of
all projects shall be scrutinized and evaluated by the
appropriate Technical Working Party (TWP) /
Steering Committee.
b.
In the 222nd Executive Board meeting of Oct 16,

2012, the Chairman NHA directed revival of TWP-I
meetings before administrative approvals of PC-I &
PC-II proformas.
11.2.
Composition. Composition of TWP/Steering Committee for
projects valuing more than Rs 50 million is given below:-
32
Table: II-1(c) NHA Code 2005

a.
b.
c.
d.
e.
f.
g.
h.
j.
11.3.
Chairman NHA
Member (Finance), NHA
Member (Planning), NHA
Member (Ops/Const), NHA
Chief T&C, Planning Commission
Director (R/RT), MoC
Rep NTRC
GM (Design), NHA
GM (Planning), NHA
Chairman
Member
Member
Member
Member
Member
Member
Member
Member/Secy
Incentive for TWP-I Members.

a.
During the 9th TWP-I meeting presided over by the

Chairman NHA on Oct 19, 2012, matter regarding
provision of incentive for the attendees of TWP-I
similar to that of NHA Executive Board was
discussed. The need for such an incentive was
emphasized as all the officers attending this
important meeting have to provide more focused
technical input despite other usual official work and
important assignments.
b.
It was unanimously agreed to recommend an

incentive equaling 50% to that of the NHA Executive
Board Members ie Rs 7,500/= for the officers who
attend TWP-I meeting.
c.
A working paper will be processed in this regard for

approval by the Executive Board.
11.4.
Proposal. The Executive Board is requested to approve
extension of above incentive wef Oct 19, 2012.
11.5.
The Member (Planning) presented details.
11.6.
Matter was discussed and cleared with the directions that
the incentive will be payable only to Members of the TWP-I who
actually attend the meeting.
33
11.7.
The Chief (T&C) remarked that an amount of Rs 20,000/=
is also admissible for payment to the officials of Secretariat / PR
Sections and NHA Auditorium for preparing documents and
organizing each Executive Board meeting. On the same pattern, an
amount of Rs 10,000/= may be sanctioned for distribution among
officers / officials of the Planning Wing. The suggestion was endorsed.
Decision
11.8.
The Executive Board approved provision of an incentive of
Rs 7,500/= (Rupees seven thousand five hundred) only per meeting for the
Members who actually attend the Technical Working Party-I meeting.
11.9.
The Board also approved provision of an amount of
Rs 10,000/= (Rupees ten thousand) only for distribution among officers /
officials of the Planning Wing who render assistance for organizing
each TWP-I meeting. The Member (Planning) NHA is authorized to
disburse this amount.
11.10.
The above decision will be applicable wef Oct 19, 2012.
Action By
12.
Member (Planning) & Member (Finance)

Agenda Item 9
NHAs Revised Budget Estimates 2011-12 and Budget
Estimates 2012-13

12.1.
Introduction.
a.
In compliance of Section-8(d) of the NHA Act 1991

(amended 2001), Revised Estimates (RE) 2011-12 &
Budget Estimates (BE) 2012-13 are submitted for
recommendation by the Executive Board to NHC
(National Highway Council) for approval.
b.
BE 2011-12 were earlier approved by NHC in (25th

meeting of Jun 6, 2012) with a total outlay of Rs
61,439.074 million having PSDP component of Rs
39,900.266 million.
34
12.2.
RE 2011-12. Total outlay is Rs 76,648.600 million;
approx 25% higher than BE mainly due to higher utilization on aided
projects.
12.3.
12.4.
Development (PSDP 2011-12).

a.
The PSDP (local currency component-LCC) was reduced to

Rs 27,029 million due to over utilization of foreign
currency component (FCC) (utilization from new loans and
enhanced progress on foreign funded projects). Thus total
PSDP releases up to Jun 30, 2012 remained Rs
56,013.065 million.
b.
Development
expenditure
including
FCC,
establishment expenses and borrowings during the
year were Rs 58,946.917 million ie more than the
available budget. The gap of Rs 2,933.852 million
was managed through internal resources of NHA.
Non-Development (2011-12).
a.
Non-development receipts remained at Rs 17,701.683

million against the estimated receipts of Rs
21,538.808 million. Reason was less release of GoP
maintenance grant and non-deposit of collected toll
revenue by FWO.
b.
Overall non-development expenditure including

borrowing from RMA to PSDP projects was Rs
17,701.683 million.
12.5.
BE 2012-13. Total outlay estimated at Rs 78,662.608
million; which include development component of Rs 50,727.221
million; (64%) and non-development Rs 27,935.387 million (36%).
12.6.
Development (PSDP 2012-13).

a.
The GoP has allocated Rs 24,602.321 million (48%) in

local currency (CDL) and Rs 26,124.900 million (52%)
as FCC (releases) through PSDP.
35
12.7.
b.
To repay the borrowings for PSDP projects during last

year, Rs 1,330.59 million are proposed to be
refunded.
c.
1% of PSDP has been reserved in development budget

for payment of establishment expenditures of NHA
employees.
Non Development (2012-13).

a.
Together with maintenance grants, the total

estimated receipts are Rs 27,935.387 million
including Rs 7,985.537 million receivable from FWO
on account of collection on motorways and national
highways during preceding years.
b.
NHAs own receipts (Jul-2012 to Jun-2013) are estimated

at Rs 16,389.573 million. Further, Rs 1,330.590
million are to be received on refund of loan from
PSDP.
c.
Major portion of revenue against estimated receipts

will be utilized for maintenance of NHA network
besides payment of collection charges and
establishment costs.
d.
Net receivable from FWO kept under contingencies as

the matter is under settlement at PAC level.
12.8.
Proposal. The NHA Executive Board is requested to
consider and recommend NHAs RE (2011-12) and BE (2012-13) as
proposed above to NHC for approval.
12.9.
The Member (Finance) introduced the proposal. The GM
(B&A) made a detailed presentation.
12.10.
The VP-NESPAK referring to RE 2011-12 enquired as to
how the total outlay increased from Rs 61,439.074 million to Rs
76,648.600 million.
36
12.11.
The Member (Finance) clarified that the FE component of
PSDP 2011-12 was only Rs 6268.351 million but actual utilization
was Rs 28,984.065 million primarily due to release of additional loan
of USD 100 million by World Bank for Highway Rehab Project and
enhancement of Chinese financing from 66% to 85% for RaikotKhunjerab Project (KKH). However, to offset this excess utilization, the
Planning Commission curtailed LC component from Rs 33,631.915
million to 27,029.000 million.
12.12.
The Chief (T&C) remarked that during FY 2012-13 NHA
needs to be vigilant to live within the given FE component otherwise
LC component will again get compromised as there will be no change
in the overall size of the PSDP. This is even more necessary as NHAs
FE allocation this year is much higher viz Rs 26,124.900 million.
12.13.
The Chief (T&C) further conveyed following observations:a.
Status of projects included in FY 2011-12 & 2012-13

be indicated with approved cost/ actual expenditures
till Jun-2012.
b.
Is the Board empowered to approve expenditures of

development projects that have surpassed cost limit
by 15% of original or/and revised cost and does NHA
Code allow this?
c.
The summary of RE 2011-12 gives the development

expenditure as Rs 58,946.917 million; whereas,
Page-11 of the working paper gives this figure as Rs
56,538.179 million ie less by Rs 2408.738 million.
d.
At Page-11, Rs 959.528 million has been shown as

expenditures against unfunded projects. This needs
clarification.
e.
Against the unapproved project for rehabilitation of

NHA network damaged by floods-2010 (Sl-79) total
expenditures of Rs 1136.406 million have been
shown. Is this an authorized expenditure and
whether codal formalities were completed?
37
f.
12.14.
At Page-37, Rs 27,935.387 million has been given as

non-development expenditures for FY 2012-13 while
Annual Maintenance Plan (AMP) 2012-13 was
approved by the Board as Rs 17,313.583 million.
The Member (Fin) NHA rendered following clarifications:a.
Status of all ongoing / recently completed PSDP

projects with approved cost / actual expenditures
upto Jun-2012 will be provided as desired. Note. The
requisite info / data is at Annex-D.
b.
Revised PC-Is are processed if cost increases beyond

15% of original cost or/and revised cost. The Board
in recent past recommended revised PC-Is of different
projects for approval by CDWP/ECNEC. Instructions
to this effect are also available in Para-50, Chapter-2
(Planning Process) of NHA Code 2005 (Annex-E).
c.
Difference is due to refund of Rs 2072.420 million of

internal borrowing and Audit Paras and Rs 336.319
million as 1% share of PSDP (LC) for establishment
expenditure of NHA.
d.
The amount of Rs 959.528 million was incurred on

unavoidable expenditures of completed/new projects.
NHA has demanded Rs 3012 million from GoP as
additional allocation. In case of some completed
projects, NHA is yet to clear land acquisition dues
because of non-availability of allocation / funds.
Presently, NHA is making payments only if a case is
decided by the court-of-law. Note. NHA has
separately demanded funds to the tune of Rs 11
billion from the GoP for clearing the outstanding land
acquisition dues (Annex-F).
e.
The ECNEC on May 4, 2011 considered the Global

PC-I for Rehabilitation of National Highway Network
Damaged due to Unprecedented Monsoon Rains &
Flash Floods 2010 and approved it, in principle, and
authorized Dy Chairman Planning Commission /
38
Chairman CDWP to approve the reviewed scope and

cost of project duly vetted by the high level
Committee constituted by the CDWP.
f.
Difference in approved AMP 2012-13 and revised BE

(non development) is due to following reasons:i.
Actual maintenance grants approved by the GoP

have been taken in proposed non-development
budget.
ii.
Receivables from FWO against revenue collection

on motorways and national highways taken from
preceding years.
iii. It is also intended to refund Rs 1,330 million

during this year to non-development budget from
PSDP.
12.15.
The Chief (T&C) stressed that since the AMP 2012-13 of
Rs 17,313.583 million was approved by the Board and the figure has
now been indicated as Rs 27,935.387 million, NHA should first seek
the Executive Boards clearance on that account to set the record
straight.
12.16.
The Chairman remarked that he has passed instructions
that revised PC-I of all projects where the cost has exceeded beyond
15% of the approved cost be processed at priority and that PC-IV of all
completed projects be also prepared most expeditiously.
12.17.
Matter was discussed and it was decided that NHAs
budget would be considered afresh in the next Board meeting.
Decision
12.18.
The Executive Board reviewed NHAs Revised Budget
Estimates 2011-12 & Budget Estimates 2012-13 and decided that this
matter would be considered afresh in the next Board meeting where
NHA will also present clarification to various observations regarding
the size of AMP 2012-13.
Action By
Member (Finance)
39
13.
Agenda Item 10
Elevation of NHA Employees Working in Basic Pay
Scale BS (1-16)

13.1.
On the instructions of Federal Service Tribunal (FST),
NHA, through its Executive Board (209th meeting of Nov 3, 2011), approved
upgradation of posts in following categories:Posts
From
To
a.
AD (Accounts/Audit/Budget)
BS-17
BS-18
b.
Superintendents (Accounts/Audit/Budget)
BS-16
BS-17
c.
Accounts/Audit/Budget Assistant
BS-14
BS-16
d.
Senior Accounts Clerk
BS-9
BS-14
e.
Junior Accounts Clerk
BS-7
BS-11
13.2.
Following posts have also been upgraded with the Boards
approval on the analogy of the Federal/Provincial Governments:Posts
a.
Stenographer
b.
Computer Operator
c.
Stenotypist
d.
Qanoongo
e.
Patwari
(1)
(2)
(1)
(3)
(3)
From
To
BS-15
BS-16
BS-14
BS-16
BS-12
BS-14
BS-9
BS-11
BS-5
BS-9
(1)
Wef Dec 23, 2011 (213th Board meeting of Jan 26, 2012) based on
GoPs order dated Mar 9, 2012.
(2)
Wef Nov 3, 2011 (209th Board meeting of Nov 3, 2011) on the

analogy of Pakistan Computer Bureau.
(3)
Wef Oct 19, 2011 (208th Board meeting of Oct 19, 2011) in line
with upgradation of posts by the Punjab Govt on Dec 7, 2011.
13.3.
Consequent upon promulgation of the Sacked Employees
Reinstatement Act-2010, NHA has reinstated 422 sacked employees
(both officers & officials of different categories & grade) one scale above their
substantive pay scale.
40
13.4.
This working paper has been processed as a follow up of
FST decision of Sep 13, 2011. Earlier, the Supreme Court of Pakistan
(SCP) through judgment dated Mar 5, 2010 endorsed a similar
decision of FST dated Dec 5, 2008 & directed its implementation for
other employees of government departments.
13.5.
Decision has been reemphasized by FST vide judgment
dated Dec 7, 2011, in an appeal filed by various categories of NHA
employees, directing NHA to consider the cases of appellants for
upgradation of their posts to higher scales by treating them at par
with others else it will be violation of fundamental human rights.
13.6.
To deliberate upon the issue, it was decided to constitute
an in-house committee; which has recommended upgradation of the
posts of appellants mentioned in the judgment as follows for approval
by the Executive Board:Existing
Designation
Existing
Scale
a.
Surveyor
BS-16
b.
Senior Lab Tech
BS-16
c.
d.
Stenographer
(Selection Grade)
Stenotypist
(Selection Grade)
Min Service in
NHA (Years)
15
15
Proposed
Designation
Proposed
Scale
Sr Surveyor
BS-17
AD (Material Testing)
BS-17
BS-16
15
Private Secretary
BS-17
BS-14
12
Stenographer
BS-16
e.
Lab Technician
BS-11
12
Sr Lab Technician
BS-16
f.
Draughtsman
BS-11
12
Sr Draughtsman
BS-16
g.
Lab Assistant
BS-5
12
Lab Technician
BS-11
13.7.
NHA employees working on other portfolios (otherwise not
the appellants in FSTs decision) have demanded similar upgradation
to remove discrimination & disparity as a result of implementation of
the above decision in the interest of equity & justice.
13.8.
NHA suggests following options for consideration by the
Executive Board. Monthly financial effect of each option is also given:-
41
Upgradation of Posts
All employees in BS-1 to 16 who are in
service till to-date as a one time exercise
(excluding those already upgraded).
Rs in M
14.155
All employees in BS-1 to 16 who are in

service since 5 years or more (excluding
those already upgraded).
2.681
III. All employees in BS-1 to 16 who possess

minimum length of qualifying service for
promotion against higher post.
1.902
IV. Only those employees who had gone to

FST and the case decided in their favor.
1.541
I.
II.
13.9.
Upgradation of posts may be allowed wef the date from
which employees of Accounts/Audit/Budget Cadres were upgraded in
NHA viz Nov 3, 2011.
13.10.
The NHA Executive Board, being fully competent, under
Section-7, Chapter-11 of NHA Act-1991 (amended 2001) is requested to
consider and approve any one of the options given above and also
approve the proposal in Para-13.9.
13.11.
The SCP, CDA and AGPR, etc, have already upgraded
similar posts.
13.12.
The Member (Admin) presented details. The GM (Admin)
and Director (Personnel) were also present.
13.13.
The Board Members made the following observations:a.
All the Members have received a notice served by the

legal counsel of Stenographers & Stenotypists for
inclusion of only selection grade Stenographers &
Stenotypists in the list for proposed upgradation. It
should be ensured that unfair treatment is not meted
to anybody. (Chief-T&C)
42
b.
Posts of some categories were upgraded in the recent

past / years. There should be no double upgradation.
(VP-NESPAK)
c.
Instead of suggesting upgradation of competent

deserving
individuals
only,
across-the-board
permanent upgradation of various posts has been
suggested. This is not a desirable proposition and
would set a bad precedent for other organizations.
(VP-NESPAK)
d.
If certain individuals deserve to be compensated

because of protracted length of service and admirable
performance but cannot be promoted because of
non-availability of posts in the next higher grade in
their respective cadre, a minimum length of service
should be made mandatory for consideration of their
elevation. (VP-NESPAK)
13.14.
On an observation by the Chairman regarding exact
wording of FST & SCP decisions, Member (Admn) read over the same:a.
FST Decision (Sep 13, 2011).

The appellants seek upgradation. It is stated by the
learned counsel for the appellants that in other
departments of the Govt upgradation has been
allowed to employees in Audit & Accounts Service. We
have seen record. The respondents have not yet
passed a final order on the grievance of the
appellants. They are directed to pass an order keeping
in view Articles 37(c) and 38(e) of the Constitution of
the Islamic Republic of Pakistan read with Article 25.
The recommendations of the senior officials of the
respondents shall also be taken into consideration.
The final order shall be passed preferably within three
months from the date of receipt of this order. With this
direction, the appeals are disposed of.
43
b.
SCPs Judgment (Mar 20, 2010).

Thus, for the foregoing reasons, petitions are
dismissed with the directions to the Finance
Secretary, Government of Pakistan, the Controller
General of Accounts in Islamabad as well as the
Accountant General, Punjab to implement and dispose
of the cases of the respondents strictly keeping in
view the observations made in the judgment dated
Dec 5, 2008 within the period of fifteen days from the
date of receipt of this order and compliance report
should be sent to Registrar of this Court for our
perusal in Chambers.
c.
FSTs Second Judgment (Dec 7, 2011).

In support of our above mentioned observations, we
shall refer to an order dated Mar 15, 2010 passed by
the Apex Court in Civil Petitions No 325 to 397 and
429 of 2010. We shall reproduce the relevant findings
of the Apex Court as under:It is also important to note that this is not the
first case of the respondents wherein the
question of upgradation has been raised.
There are so many other departments wherein
the upgradation has already taken place and
respondents approached the Tribunal on the
ground of discrimination and violation of their
fundamental rights under Article 25 of the
Constitution of Islamic Republic of Pakistan.
The appellants are entitled to the benefit of the
above observations of the Apex Court
especially when Article 25 of Constitution
guarantees equal treatment of law to all.
In the above circumstances, while restoring the special
pay of the applicants, we also direct the respondents
to consider the claims made by the appellants and
take appropriate stage (sic) for their redress, even if it
involves amendment in the service rules. The process
may be completed expeditiously preferably within a
period of four months from the date a copy of
judgment is received in the office of the respondents.
44
13.15.
The Chairman made the following remarks:a.
While upgrading a post, the job description is the key

factor to clinch a decision but this was not kept in
perspective. NHA should have moved an appeal
against the FST decision but this was also not done.
b.
Generally, the employees are stuck up in the same

grade for want of promotion vacancies in the next
higher grade in their respective cadres. Now that
NHA has permanently inducted about 1745
employees of different categories including sacked,
contract, daily wages & NTRC and broadened its
strength, the promotion base can also be expanded
for the deserving employees to be compensated
instead of widespread upgradation.
c.
For elevating an employee, satisfactory performance,

overall grading of Performance Evaluation Reports
and length of service are the key factors and should
not be disregarded.
13.16.
The pros & cons of all the four options were deliberated at
length and final consensus was that instead of upgrading the posts in
the manner proposed, deserving regular employees be compensated by
elevating them one pay scale above their existing scale subject to
various conditions particularly length of service and performance.
Decision
13.17.
The Executive Board considered the working paper
regarding upgradation of NHA employees in BPS-1 to 16 and decided
that instead of upgrading the posts in the manner proposed, deserving
regular employees be compensated by elevating them one pay scale
above their existing scale. Following conditions will apply:a.
Only those individuals will be elevated who possess

the qualifying length of service for promotion to the
next higher post, as per the existing rules of NHA.
45
Note.
The overall grading of their Performance Evaluation

Reports (PERs) is good or above with no adverse
entry in the last five PERs.
c.
For lower grades, where no PERs are initiated, the

condition b above will not apply.
d.
No disciplinary proceedings are pending against the

individual to be elevated in this manner.
e.
This special facility will be available across-the-board

for all regular employees in BS-1 to 16.
f.
The post against which an individual has been given

one step above elevation according to this one time
policy / exercise will stand upgraded one scale above
as personal to the said individual and will revert to
the original scale as & when this post is vacated by
the said individual for any reason.
In its 224th meeting held on Jan 7, 2013, the Executive Board decided to
appoint a Sub-Committee of the Board comprising JS-II MoC, Chief (T&C) &
Member (Finance) NHA for review of this matter & presentation of report before
next meeting.
Action By
14.
b.
Member (Admin)
Agenda Item 11
Conversion of 4-Lane Karachi - Hyderabad SuperHighway into 6-Lane Motorway (M-9) on BOT Basis

14.1.
Introduction. The Karachi - Hyderabad Superhighway
(136 km) was constructed during 1964-68 & dualized in 1990s. NHA
plans to undertake conversion of this 4-lane facility into 6-lane
Motorway (M-9) on Build, Operate and Transfer (BOT) basis.
14.2.
EoIs. Notice seeking Expressions of Interest was
published in the national press on May 17, 2011 and international
media on Jun 3, 2011. Six (6) firms / JVs submitted their EoIs:-
46
a.
b.
c.
d.
e.
f.
14.3.
Messers
Bina Puri Holdings BHD
EOBI-PRIMACO-NESPAK-SMADB-SKBTOLLINK - NCBMS
SAMBO-DEOKJAE (JV)
CRBC- Trans Tech (JV)
Frontier Works Organization (FWO)
Siyahkalem - Maqbool Associates (JV)
Country
Malaysia
Pakistan
Korea
China
Pakistan
Turkey
BOT Proposals Submitted By.

a.
b.
M/s Bina Puri Holdings BHD, Malaysia

M/s EOBI - PRIMACO - NESPAK - Zeeruk - SMADB TOLLINK - NCBMS, Pakistan (JV)
14.4.
Technical Proposals. Technical proposals were opened Oct
1, 2011 in the presence of the Bid Opening & Evaluation (BO&E)
Committee and Reps of the bidders.
14.5.
14.6.
Employees' Old-Age Benefits Institute (EOBI).

a.
To avoid subsequent complications, NHA deemed it

appropriate to ascertain if the lead partner of the JV,
EOBI has the mandate to participate in the bidding.
b.
Matter was referred to MoC on Oct 13, 2011, with the

request to seek necessary clarification from the
Ministry of Human Resource Development (HRD).
Clarification-1. Ministry of HRD, clarified as under:Para 2: EOBI investments are governed by the EOB
(Investment) Rules, 1979 and these Rules do not
permit to make investment in such projects on BOT
basis in the communication sector including
construction of Motorway.
47
Para 3: The Board members appreciated the above views

of the Minister and assured that they would
continue working with dedication & sense of
responsibility. The President, BOT also appreciated
the views of the Minister & supported the
investment proposals in respect of power
generation projects (ie wind, solar, hydel and coal
energy, etc) and M-9 proposal.
Para 4: The EOBI does not have any experience and
expertise to build or run any communication
project, on BOT basis.
14.7.
Analysis. In the light of above clarification, legal position
of EOBI, the lead partner of EOBI-PRIMACO-NESPAK-SMADB-SKBTOLLINK-NCBMS, Pak (JV), became questionable. Moreover, in the
absence of a mandate to execute a motorway project, the managerial
part of the JV got adversely affected.
14.8.
Clarification-2. M/s Bina Puri Holdings BHD, Malaysia
was requested to submit following details/ clarifications: a.
Authority letter for submission of additional information.
b.
c.
d.
e.
f.
g.
Company portfolio including annual turnover.

Willingness letters of all JV members.
Preliminary design drawings.
Description & layout of proposed motorway facilities.
Operations & maintenance procedures and systems.
Timeframe for early completion of the project.
14.9.
Technical Evaluation. Subsequent to technical evaluation,
the BO&E Committee recommended as follows: a.
In light of the clarification received from Ministry of

HRD, the EOB (Investment) Rules, 1979 do not
permit investment in such project on BOT basis in
the communication sector including construction of
a motorway. In the absence of the lead partner, the
legal position of EOBI-PRIMACO-NESPAK-ZeerukSMADB-tollink-ncbms (JV) has become questionable.
48
b.
M/s Binapuri Holdings, BHD, Malaysia scored 73

and M/s EOBI (JV) 67 points.
c.
Since minimum criteria of qualification for opening

of financial proposal is 70 points, M/s EOBI (JV) did
not qualify for opening of financial proposal.
d.
Opening of financial proposal of M/s Binapuri

Holdings may be allowed.
e.
M/s Binapuri be directed to submit bid bond in

acceptable form, as per requirement of the RFP.
14.10.
Financial Proposal. Financial proposal of M/s Binapuri
Holdings only was opened on Nov 1, 2011. Preliminary evaluation
revealed that it carried anomalies and needed clarifications; however,
subsequent submissions of Binapuri did address the anomalies.
14.11.
LoI. In a meeting held on Nov 11, 2011, the Minister for
Finance was apprised of the salient features of the financial proposal
as well as progress of the procurement process. With the prime
objective to engage M/s Binapuri to capitalize on the opportunity of
substantial foreign investment, a Letter of Intent was issued
immediately thereafter, inviting them to further discuss, tune up and
finalize their proposal; which may lead to negotiations entailing in
signing of the Concession Agreement.
14.12.
Presentation. A delegation of M/s Binapuri made a
detailed presentation on Nov 29, 2011. Since the Minister for Finance
had desired to engage a Rep each from Planning Commission and
Ministry of Finance to participate in the negotiations, NHA extended
invitation through MoC. Both the Reps attended the said presentation.
14.13.
Concession Agreement.
a.
Negotiation for finalization of Concession Agreement

commenced subsequent to the presentation.
b.
Consequent to detailed negotiations a Concession

Agreement was finalized and submitted to NHA
Executive Board for clearance.
49
c.
14.14.
14.15.
Upon clearance from the Executive Board (211th

meeting of Jan 13, 2012), Concession Agreement was
signed with M/s Binapuri Pakistan (Private) Limited
on Jan 16, 2012 to implement the M-9 Project on
BOT basis.
Financial Close.
a.
The Concessionaire could not achieve Financial

Close within given time frame of six months, ie till
Jul 15, 2012 and requested for six months time
extension for achievement of Financial Close.
b.
NHA did not find enough evidence, particularly, with

respect to the efforts made by M/s Binapuri to
achieve Financial Close and did not agree to the
request.
Default Notice.
a.
A Default Notice was issued to M/s Binapuri on Aug

16, 2012 but they failed to provide proof of initiating
remedy of their default to the satisfaction of NHA as
per provision of the Concession Agreement.
b.
On the request of M/s Binapuri, a meeting was

scheduled on Oct 10, 2012 to provide them an
opportunity to present their status of efforts to
achieve Financial Close. They declined to attend.
14.16.
Termination Notice. NHA was left with no choice but to
issue a Termination Notice on Oct 10, 2012. Accordingly, termination
of M-9 Concession Agreement will become effective on Dec 10, 2012.
14.17.
Options.
Following options are available to proceed
further for implementation of M-9 Project:
I.
Fresh bids may be invited to implement through GoP

funding. If this funding is made available, the
implementation can be commenced within three
months.
50
II.
Fresh proposal may be invited to implement the

project on BOT basis.
14.18.
Proposal. Matter is brought to the notice of NHA Executive
Board for deliberation and seeking guidance to proceed further.
14.19.
The Member (MW/PPP) presented the details adding that
cost of the project compares as follows:Cost Description
a.
b.
c.
Construction
(Rs in B)
Project
(Rs in B)
11.23
13.44
13.57
16.23
18.27
24.93
PC-I (2009)
Updated PC-I (2012)
@ 6.5% escalation per annum
M/s Bina Puris bid
14.20.
The Chief (T&C) recalled that progress of M-9 BOT project
was reviewed in a meeting chaired by the President of Pakistan on Nov
2, 2012 at Karachi and wished to know the decision.
14.21.
The Chairman responded that it was suggested that if
EOBI presents legal enablement to lead the local consortium duly
reconstituted / strengthened to qualify technically and participates in
fresh bidding or submits an alternative acceptable proposal, the work
can commence in three months. The President accepted this line of
action with directions that the process should be completed at top
speed. In case of failure on the part of NHA to execute the project on
BOT basis, the GoP will make an endeavor to provide PSDP funds.
14.22.
The VP-NESPAK observed that mega projects being offered
by NHA on BOT basis despite signing of concession agreements are
not coming through as the concessionaires fail to achieve financial
close. One reason for this bottleneck is inappropriate project structure
as the lenders do not accept the project as financially viable. As
already stressed by him in the case of Khanewal - Lodhran Motorway,
the need for NHA is to add funding (minimum 20%) to make BOT
projects attractive for the prospective investors to produce a bankable
document before the lending institutions. The GoP share in the shape
of land only is not a sufficient collateral.
51
14.23.
The Member (Planning) NHA stated that in case of
Shahdara Flyover, the BOT annuity concept was introduced and the
concessionaire was offered a pre-defined revenue stream through toll
collection with NHAs regular contribution besides a commitment that
NHA will make good shortfall in toll revenue for any reason, still the
project could not make any headway. Nevertheless, the observation
has been noted and for future projects various options will be
suggested based on commercial feasibility.
14.24.
Matter was discussed and the consensus was that readvertisement appears to be the most desirable proposition.
Decision
14.25.
The Executive Board reviewed the working paper on
conversion of 4-lane Karachi - Hyderabad Superhighway into 6-lane
Motorway (M-9) on BOT basis and decided that re-advertisement of
the project appears to be the most desirable proposition in any case ie
if the project is undertaken on BOT basis or through GoP funding.
Action By
15.
Agenda Item 12
Approach Roads / Road Network to New Benazir
Bhutto International Airport (NBBIA)

15.1.
Preamble/Introduction.
a.
During visit of the Prime Minister to the under

construction New Benazir Bhutto International
Airport on Sep 17, 2012, NHA presented
construction of three links for NBBIA on BuiltOperate-Transfer (BOT) basis while also submitting
that this process will entail more time.
b.
It was decided that, as an interim arrangement, the

existing Thalian Road may be improved for early
operation of NBBIA cargo traffic.
52
15.2.
c.
The Prime Minister also directed Civil Aviation

Authority to complete the cargo terminal within six
months for cargo flight operation.
d.
In a follow-up meeting chaired by Secretary Defence,

on Oct 1, 2012, immediate development of existing
Thalian Road was re-emphasized.
Options for Development of Existing Thalian Road.

a.
Keeping in view the urgency involved, NESPAK was

tasked for improvement of existing Thalian Road
involving minimum land acquisition. NESPAK
submitted two options.
b.
For easy crossing of two trailers on the link road,

Option-1 has been recommended:i.
ii.
iii.
iv.
Length
Carriageway
Shoulder
Cost
:
:
:
:
4.6 km *
7.2 m
1 m (each side)
Rs 76 million
* Note. Including 500 m Kacha Track and 1.5 km loops at Thalian Flyover.
15.3.
Funding.
a.
No allocation exists for the project in PSDP 2012-13

and rules do not permit to arrange its funding from
Road Maintenance Account (RMA).
b.
Land acquisition/shifting of utilities component of

Rs 932.359 million included in the project PC-I was
approved by CDWP on Oct 15, 2012.
c.
NHA proposes to charge Rs 76 million required for

development of Thalian - New Airport Road to this
PC-I. The amount is well within 15% exceeding
which the PC-I will need revision.
53
15.4.
Proposal. The Executive Board is requested approve:a.
Scheme of Rs 76 million to improve and connect

Thalian with NBBIA through existing connection as
per design of NESPAK already available with NHA
(Design Section).
b.
NHA (Operations Wing) be entrusted this task

where GM (M-2) be responsible for execution of the
scheme through bridge financing from RMA. Funds
will be returned upon release of PSDP for land
acquisition against PC-I.
15.5.
The Member (Planning) presented the details.
15.6.
The Chief (T&C) remarked that construction of road
linkages for NBBIA project is to be undertaken on BOT basis and the
PC-I recently approved by CDWP was for land acquisition only.
Proposed expenditure on improvement / development of existing
Thalian Road cannot be ultimately debited to that PC-I. NHA will have
to find a suitable financial resource for the suggested expenditure
other than the PC-I (land) or RMA.
15.7.
The Chairman endorsed the suggestion with remarks that
the matter will be further deliberated in-house and NHA will prepare a
separate PC-I for funding of this project through PSDP. Meanwhile, in
view of the urgency of the work, the requisite amount would be
provided through bridge financing from the RMA.
Decision
15.8.
The Executive Board considered the proposal seeking
improvement of existing Thalian Road for providing immediate linkage
between New Benazir Bhutto International Airport & Motorway (M-2)
and directed NHA to prepare a separate PC-I for funding of this project
through PSDP. Meanwhile, in view of the urgency of the work, the
requisite amount viz Rs 76 million would be provided through bridge
financing from the RMA.
Action By
Mem (Planning), Mem (Operation) & Mem (Finance)

54
Strengthening of Inspection & Monitoring Cell and

Issue of Revision of approved PC-Is
16.
16.1.
The Chief (T&C) stated that in pursuance of the directions
of the Deputy Speaker National Assembly on a Point of Order for delay
in execution / operation and design issues / premature failure of
Waigum Rud - Khajuri - Bewata Section (N-70), Syed Khurshid Ahmed
Shah, Minister for Religious Affairs was tasked to discuss the matter
with all stakeholders ie MoC, NHA, Finance and P&D Divisions and
Reps of the contractors viz NLC & FWO. The first meeting was held on
Oct 17, 2012, participation in which was an embarrassing experience
as the issues raised therein should have been promptly attended to by
NHA on its own without intervention by the Parliamentarians.
16.2.
The Chief (T&C) remarked that he has received complaints
that on various other national road sections also, the commuters are
facing grave inconvenience because of inaction on the part of NHA to
attend to damage to its network. On a lengthy stretch near Ubauro,
the traffic is moving on an inappropriately maintained diversion for
the past many months but corrective action is not forthcoming. This
problem should be attended on urgent basis. Furthermore, the need is
to strengthen the Inspection & Monitoring Cell of NHA for identifying
bottlenecks/problem areas for prompt corrective measures. Moreover,
such issues of high public importance should also be brought to the
notice of the Executive Board with all relevant details.
16.3.
The Chief (T&C) also drew attention of the Planning Wing
of NHA that the project PC-Is which have exhausted the approved cost
over and above the permissible limit of 15%, may be revised and got
processed through normal channel ie CDWP / ECNEC to enable NHA
incur expenditure as per revised scope & cost.
16.4.
The Chairman NHA appreciated the remarks and stated
that the suggestions will receive due attention.
Action By
17.
M (Admn), M (Ops), M (Con), M (AP) & M (Plg)

Poor Quality Contents of NHA Website
17.1.
The Chief (T&C) stated that he has visited NHA website on
a number of occasions and found that it is generally outdated and
even otherwise lacks in quality & substance. The website needs to be
appropriately improved and also made user friendly.
55
17.2.
The Chairman NHA appreciated the remarks and stated
that the observation has been noted for necessary corrective action.
Action By
Member (Admin) & Director (MIS)

Regularization: Daily Wages Employees and NHA
Employees Held on Consultants Strength but
Physically Working with NHA
18.
18.1.
The Chief (T&C) remarked that NHA has regularized the
services of employees placed on daily wages strength who have
completed three consecutive spells of three months but other
employees who have also completed this criteria after this cut of date
in light of the governments directions, have not been regularized. This
issue needs to be addressed. Moreover, despite clear directions by the
Executive Board and passage of considerable length of time the matter
concerning regularization of certain individuals employed by NHA
against the head of contingencies or provisional sum with the
approval of the Chairman NHA has not been processed.
18.2.
The Chief (T&C) added that the situation is creating a lot
of heart burning among the individuals concerned. The Senate
Standing Committee on Communications had also deliberated upon
the matter in its meeting held on Sep 20, 2012 and directed that the
employees in question working in NHA for the past 4-5 years be also
considered for regularization of service.
18.3.
The Chairman NHA responded that the concern has been
noted and that the matter will be placed before the next Executive
Board meeting.
Action By
19.
Member (Admin) & Secretary NHA

Revision of Honoraria Fee for Participation in NHA
Executive Board Meetings: Amendment in NHA
(Meetings of the Executive Board), Regulations, 2003
19.1.
The Board Members pointed out that the honoraria of
Rs 15,000/= for participation in each Board meeting was fixed in Aug2009. It now needs suitable revision as the workload is mounting due
to huge increase in NHAs portfolio and operational & maintenance
functions. The agenda items are invariably voluminous and require
devotion of substantial time for careful study / analysis and quality
intellectual input.
56
19.2.
Matter was discussed and revision in the honoraria was
approved to compensate for extra hard work. Rationalization of
honoraria for support staff was also approved.
Decision
19.3.
The Executive Board approved revision of honoraria for
participation in the Board meetings from the current Rs 15,000/= to
Rs 20,000/= (Rupees twenty thousand) per meeting. The NHA (Meetings of
the Executive Board), Regulations, 2003 will be deemed to have been
amended, accordingly.
19.4.
Rationalization of honoraria for support staff was also
approved from Rs 20,000/= to 25,000/=.
Action By
Member (Finance) / Secretary NHA
20.
Conclusion
20.1.
The Chairman wrapped up the meeting by thanking the
Board Members for their active participation and useful input. He also
expressed gratitude for the fact that the Board Members spared
extended time.
-------------------
57
EXTRACTS
CONFIRMED MINUTES OF THE
223RD EXECUTIVE BOARD MEETING
NOVEMBER 7, 2012 AT ISLAMABAD
58
Overall National Financial Constraints and its Impact

on Public Sector Development Program
16.
16.1.
The Additional Secretary (Finance) remarked that because
of the overall financial constraints, it would not be possible for the
Finance Division to meet the demand for provision of additional funds
from any department / organization. In case additional demand for
any project is entertained, it will be from within the overall PSDP
2012-13 (both local & foreign currency) through appropriate readjustment.
In case of provision of additional funds in local currency, the foreign
currency size will stand proportionately reduced.
16.2.
The AS (Finance) added that in these circumstances he
would like to suggest to NHA to identify priority projects and those
nearing completion and place the list of Priority 1 & Priority 2 projects
with suggested distribution of resources during FY 2012-13 before the
Executive Board for consideration.
16.3.
The Chairman remarked that NHA has recently received
additional Rs 1.5 billion for few specific projects released by the
Finance Division from the PMs discretionary fund of Rs 10 billion and
it has been given to understand that this amount has been provided
over & above NHAs PSDP allocation 2012-13.
16.4.
The Member (Finance) NHA added that a request for reappropriation of funds is submitted to the Planning Commission while
submitting demand for every quarter keeping in view the pace &
priority of important projects.
Action By
Member (Finance) & Member (Planning)
59
Participation in the Executive Board Meetings by All

Members of NHA
17.
17.1.
The Chief (T&C) pointed out that only two Members
defined in NHA Act viz Member (Planning) & Member (Finance)
currently attend the Board meetings, however, previously all Members
of NHA used to be invited but this practice was stopped in early 2011.
He suggested that the previous practice should be restored so that all
Members of NHA are current about various policy / important issues
deliberated by the Board and also for provision of their respective
professional input.
17.2.
The Secretary NHA apprised that the past system was
dispensed with on the directions of the MoC although the Board had
previously also issued similar directions (201st meeting of Jan 20, 2011).
17.3.
Matter was discussed and it was decided that henceforth
all Members of NHA will be invited to participate in the meetings of the
Executive Board.
Action By
Secretary NHA
60
PC-III Proforma. Designed to furnish info on the progress of ongoing

projects on quarterly basis and is required to be submitted by the
executing agencies within 20 days of the closing of each quarter. It
gives financial as well as physical progress of the scheme with info on
any bottlenecks experienced during execution.
PC-IV Proforma. Required to be submitted at the time when the
project is adjudged to be complete.
PC-V Proforma. Furnished annually for a period of five years by the
agencies responsible for operation and maintenance of the projects.
61

223 Executive Borad Meeting of NHA

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NHA Executive Boards Confirmed Minutes

NATIONAL HIGHWAY AUTHORITY

223rd Meeting of the NHA Executive Board Held on

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

Opening Remarks - Chairman NHA

223rd Meeting, November 7, 2012, Islamabad

NHA Executive Boards Confirmed Minutes

NHA Executive Boards Confirmed Minutes

223rd Meeting, November 7, 2012, Islamabad

NHA Executive Boards Confirmed Minutes

223rd Meeting, November 7, 2012, Islamabad

NHA Executive Boards Confirmed Minutes

In Agenda Item 5 titled Overlay and Modernization

Matter was discussed and cleared.

In Agenda Item 12 discussed above, amend the

223rd Meeting, November 7, 2012, Islamabad

NHA Executive Boards Confirmed Minutes

Add the following new Para-18 before the head

Tribute to Mr Muhammad Ali Gardezi, Former

18.1. Mr Muhammad Ali Gardezi, a BS-21 officer of

Renumber existing Para-18

223rd Meeting, November 7, 2012, Islamabad

NHA Executive Boards Confirmed Minutes

Khanewal-Lodhran (Bahawalpur), access controlled

It will start from Multan Interchange of Motorway

It is a part of NTC (National Trade Corridor), envisioned

103 km, 4-lane divided fenced expressway.

PC-I. Approved by ECNEC on Feb 3, 2012:a.

* Project cost includes cost of land, resettlement, etc.

223rd Meeting, November 7, 2012, Islamabad

NHA Executive Boards Confirmed Minutes

Proposal. NHA Executive Board is requested to approve:a.

Implementation of Khanewal - Lodhran Expressway

Outsourcing preparation of commercial feasibility

The Member (MW/PPP) presented details.

The Board Members made the following observations:a.

Project was originally planned through World Bank

Project viability now that NHA is also constructing

NHA is calling some new projects as motorways &

A motorway standard road will ensure free & fast

The Member (MW) rendered following clarifications:a.

Project is no more included in the World Banks plan

223rd Meeting, November 7, 2012, Islamabad

NHA Executive Boards Confirmed Minutes

Proposed expressway provides direct and shorter

Motorways are constructed on higher specifications

223rd Meeting, November 7, 2012, Islamabad

NHA Executive Boards Confirmed Minutes

Matter was discussed and cleared.

Introduction - Working Paper

Lodhran - Sukkur is a part of NTC (National Trade

NHA Executive Boards Confirmed Minutes

Scheme envisages rehabilitation / upgradation of

Rehabilitation and upgradation of existing 4-lane

Construction of one additional lane in median on

Provision of fence on both sides to ensure access

Construction of new bypasses, wherever required.

Proposal. NHA Executive Board is requested to approve:a.

Implementation of Lodhran - Sukkur Expressway

Outsourcing preparation of commercial feasibility

The Member (MW/PPP) presented details.

NHA Executive Boards Confirmed Minutes

Matter was discussed and cleared.

Introduction - Working Paper