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CONFIRMED MINUTES
Subject:
1.
Introduction
1.1.
The 227th meeting of the Executive Board of the National
Highway Authority was held at 1400 hours on Apr 29, 2013 at the
NHA Head Office Auditorium, Islamabad. Mr Hamid Ali Khan,
Chairman NHA presided.
1.2.
1.3.
The meeting commenced with recitation of verses from the
Holy Quran and Urdu translation.
2.
2.1.
The Chairman extended warm welcome to the participants
particularly Mr Khizer Hayat Gondal, AS (Budget) Finance Division
who was attending the Board meeting for the first time vice Mr Abdul
Khaliq. Mr Gondal brings with him vast experience and proven
professional ability and his presence & input would definitely help in
qualitative decision making.
2.2
The Chairman stated that the time for the meeting had to
be adjusted from morning to afternoon due to clash with a meeting
convened by the PM. Resultantly, not enough time would be available
for discussion as agenda is rather heavy as the Board is meeting after
a gap of more than two months.
2.3.
The Chairman updated the Board on various important
activities during the past two months. One key event was the holding
of 26th NHC meeting on Mar 6, 2013. Key discussions taken during
this meeting are listed in Annex-B.
2.4.
The Chairman stated that in Mar & Apr-2013, he visited a
number of mega projects / road sections in Balochistan, Sindh,
Punjab & Khyber Pakhtunkhwa and it is satisfying to report that the
progress on most of the projects inspected was generally satisfactory.
The road sections / projects visited included the following:a.
b.
c.
d.
e.
f.
g.
2.5.
During the period under review, following inauguration/
groundbreaking ceremonies were graced by the President of Pakistan:a.
b.
c.
d.
2.6.
The Chairman added that 2x Committees of Officers have
recently been appointed for revision of NHA Code-2005 and for
updating CSR-2011 as CSR-2013 and both the revised versions will
soon be placed before the Executive Board for approval.
2.7.
The Chairman also provided an update on award of
contracts for Flood Emergency Reconstruction Project (FERP) stating
that the status of 25 contract packages is as follows:-
a.
b.
c.
d.
NCB:
ICB:
11
7
1
6
25
2.8.
The Chairman also appraised on the status of release of
PSDP funds stating that NHA has so far received only Rs 11.95 billion
against the local currency allocation of Rs 23.92 billion for 2012-13 &
delay in provision of 3rd quarter release has resulted in accumulation
of outstanding liabilities. Further, it is apprehended that the Finance
Division might impose a cut of Rs 2 billion on NHAs allocation for
current financial year and this would be major setback.
3.
3.1.
The IG (NH&MP) stated that he would like to avail the
opportunity to highlight some important operational issues:a.
b.
3.2.
b.
c.
d.
3.3.
The Member (Operation) remarked that first relaxation
was allowed to the truckers by the ministerial committee and now no
fines are being imposed because of the decision not to allow movement
of any overloaded goods carrier on NHA network. Sudden decrease in
revenue generated through weigh stations will attract audit objections;
NHA would therefore be presenting a working paper on this subject to
the Executive Board.
Agenda Items
4.1.
The Secretary NHA stated that 18 x working papers were
circulated in three volumes, Vol-I (13 items) on Apr 17, Vol-II (2 items)
on Apr 23 and Vol-III (3 items) on Apr 26, 2013. Subject-wise
distribution is as follows:-
a.
b.
c.
d.
e.
f.
g.
h.
Item
Minutes
Revised PC-I
Hiring of consultant
Construction matter
Award of works
Financial matters
Operational matters
Admin matters
Total
No
2
2
1
1
3
2
3
4
18
4.2.
The Secretary NHA regretted the fact that Vol-III was
circulated belatedly. Since the agenda is heavy, and the meeting has
commenced very late, the Board may like to take up important items
for discussion first and time permitting dispose of the remaining
agenda. The suggestion was agreed to.
4.3.
The Chairman added that, for leftover items and also that
in pipeline, the next Board meeting will be convened at an early date.
On the suggestion of Secretary NHA, it was decided to convene the
228th meeting on May 8, 2013.
5.
Agenda Item 1
Confirmation of Minutes - 225th Meeting of the
Executive Board Held on Feb 11, 2013
5.1.
The Secretary NHA solicited confirmation of minutes of
the 225th Executive Board meeting held on Feb 11, 2013. He recalled
that the minutes were circulated on Apr 17, 2013 and that no written
comments / observations have been received from any Member.
5.2.
The VP-NESPAK recalled that in the context of discussion
on Agenda Item 2 dealing with an award of works case in which FWO
was also competing, he had suggested that to avoid complications in
future contracts, due to addition of 6% income tax in the bid of FWO
or NLC after opening, it might be desirable to seek policy decision from
GoP after prior legal advice. He suggested that while processing this
matter the fact that FWO & NLC also enjoy certain other concessions
such as non submission of performance & mobilization advance
guarantees may also be covered.
5.3.
Decision
5.4.
The Executive Board confirmed minutes of 225th meeting
held on Feb 11, 2013 with following amendments:a.
Read:
b.
c.
Action By
6.
Secretary NHA
Agenda Item 2
Confirmation of Minutes - 226th Meeting of the
Executive Board Held on Feb 26, 2013
6.1.
The Secretary NHA solicited confirmation of minutes of
the 225th Executive Board meeting held on Feb 11, 2013. He recalled
that the minutes were circulated on Apr 17, 2013 and that following
written observation has been received from JS (MoC) wrt Agenda Item7 (Para 10.10) concerning inclusion of M/s Silver Star Insurance Co
Ltd on approved panel of NHA:Minutes does not reflect the actual decision taken by the
Board ie unless and until the credit rating of M/s Silver Star
Insurance Co Ltd is improved to A or better, it cannot be
included in the panel of NHA. Minutes be changed according
to the Boards decision.
6.2.
The Secretary NHA clarified that minutes were correctly
recorded. The Board had initially decided that M/s Silver Star may not
be included in NHAs approved panel of insurance companies since it
has lower credit rating viz A-. However, in the end, it was finally
decided that the proposal may be approved subject to clarification by
Securities & Exchange Commission of Pakistan regarding equivalence
of "A-" rating with "A" rating.
227th Meeting, April 29, 2013, Islamabad
6.3.
The Member (Fin) NHA added that a reference was made
to SECP; who have responded that there is no statutory obligation on
any insurance company in Pakistan to seek any credit rating of itself
from any rating agency and it (SECP) neither issues nor recognizes
any such rating of insurance companies. Later JCR-VIS, the agency
that assigned A- rating to M/s Silver Star informed that all entities /
insurance companies rated A+, A or A- are considered under one
category. JCR-VIS under rating band A segregates the risk profile of
entities/insurance companies under same category by assigning a
positive or negative sign. Thus it can be inferred that A is above A-.
Matter, therefore, stand closed and M/s Silver Star is no more being
considered.
6.4.
The Secretary NHA invited attention to the decision on
Agenda Item 8 wherein enlistment of Sindh Bank, ZTBL and SME
Bank on NHAs panel was not endorsed by the Board as these banks
did not enjoy A rating. As recorded in foot note under Para-11.11
(decision), ZTBL, subsequently, intimated that safety of deposits
mobilized by it is also guaranteed under the Banks Nationalization
Act, 1974, therefore, the matter may be reconsidered.
6.5.
After discussion consensus was that since 100% share of
ZTBL is with GoP, NHA may be allowed to include it on its panel after
ascertaining if this bank is held on the approved panel of other major
public sector organizations.
6.6.
The Chief (T&C) invited attention to decision recorded in
Para-15.15 of the minutes concerning Additional Agenda Item-II
Absorption of Staff Employed by NHA Against Provisional Sum of
Project PC-Is on Regular Strength and stated that as decided by the
Board this subject was to be discussed again during todays meeting
and he would request that the matter may be deliberated now that the
MoC has also accorded clearance of the minutes.
6.7.
Matter was discussed and after seeking consent of JS-II
(MoC) it was decided that the issue highlighted in preceding Para will
be deliberated and decided in the next Board meeting.
6.8.
Decision
6.9.
The Executive Board confirmed minutes of 226th meeting
held on Feb 26, 2013 with the direction that following footnote may be
added under Para-11.11 (Decision) concerning Agenda Item 8
Enlistment of Sindh Bank Ltd, Zarai Taraqiati Bank Ltd and Small &
Medium Enterprise (SME) Bank Ltd on NHAs Panel:The Executive Board reconsidered the matter in its 227th
meeting of Apr 29, 2013 and decided that since almost
100% share of ZTBL is with GoP, NHA is allowed to include
ZTBL on its panel after ascertaining if other major public
sector organizations have placed their funds with ZTBL.
Action By
Secretary NHA
Agenda Item 3
Revised PC-I : Barian - Nathiagali - Abbottabad Road
(65.34 Km)
7.
7.1.
This matter could not be discussed because of paucity of
time and will be taken up in the next Executive Board meeting.
Action By
Member (Planning)
Agenda Item 4
Hiring of Consultants: Feasibility Study for Wazirabad
Khanqah Dogran Expressway
8.
8.1.
This matter could not be discussed because of paucity of
time and will be taken up in the next Executive Board meeting.
Action By
Member (Planning)
Agenda Item 5
Award of Toll Plaza on Peshawar-Torkham Section of
N-5 through Negotiated Tendering as a Pilot Project
9.
9.1.
This matter could not be discussed because of paucity of
time and will be taken up in the next Executive Board meeting.
Action By
Member (Operation)
Agenda Item 6
Toll Exemption at Qutbal Toll Plaza, Tehsil Fatehjang
(N-80)
10.
10.1.
This matter could not be discussed because of paucity of
time and will be taken up in the next Executive Board meeting.
Action By
Member (Operation)
Agenda Item 7
Construction of Khanewal - Multan Motorway (M-4
Extension, 57 Km) : Design of Bridges Flyover & SubStructures
11.
11.1.
This matter could not be discussed because of paucity of
time and will be taken up in the next Executive Board meeting.
Action By
12.
b.
10
12.3.
Auditors Opinion.
a.
b.
c.
d.
12.4.
Proposal. The Executive Board is requested to approve the
Road Maintenance Accounts for the year ended Jun 30, 2012 along
with the specific approval of following items:-
a.
Description
Rs in M
Additions to property, plant & equipment-at cost 25.012
646.052
Boards Deliberations
12.5.
The Member (Fin) presented details. He stated that when
NHAs financial statements were first audited, the auditors had raised
17 qualifications and, over the years, by improving its working system
NHA has been able to bring down the qualifications to two. Even for
these two cases, figures have been reconciled and only documentation
is an issue, as explained in Annex-C.
12.6.
Decision
12.7.
The Executive Board approved the Road Maintenance
Accounts for the year ended Jun 30, 2012 along with the following:Description
Rs in M
Action By
646.052
Member (Finance)
227th Meeting, April 29, 2013, Islamabad
11
13.
Agenda Item 9
Approval of Accounts of National Highway Authority
(Entity) for the Year Ended Jun 30, 2012
13.3.
b.
Auditors Opinion.
a.
b.
c.
d.
12
13.4.
Proposal. The Executive Board is requested to approve
NHA (Entity) Financial Statements for the year ended Jun 30, 2012
along with the specific approval of following items:Description
Rs in M
a. Additions to property, plant & equipment-at cost 788.719
b. Additions in capital work-in-progress
53939.773
Boards Deliberations
13.5.
The Member (Fin) presented details. He stated that when
NHAs financial statements were first audited, the auditors had raised
17 qualifications and, over the years, by improving its working system
NHA has been able to bring down the qualifications to two. Even for
these two cases, figures have been reconciled and only documentation
is an issue, as explained in Annex-D
13.6.
The VP-NESPAK observed that he has been attending the
Board meetings for the past around three years and during this period
no qualification has been removed.
13.7.
The Member (Fin) clarified that the Audit Report for the
period ended Jun 30, 2011 contained three qualifications and the one
concerning reporting of revenues collected has been removed this
time. The nature of existing qualifications viz adjustment of land
acquisition advances and confirmation of contingent liabilities from
NHAs legal advisors is such that these will stay, however, the figures
mentioned will be gradually brought down.
13.8.
The Member (Plg) added that land acquisition advances
are deposited by NHA in the provincial treasury and in some cases it
takes decades to settle the matter for various reasons particularly
disputed ownerships, court cases and refusal of land owners to accept
the price determined by the District Price Assessment Committees. In
many cases, NHA acquires the land but funds are not provided by the
GoP. Land for motorways was acquired in 1990s but NHA has yet to
clear outstanding dues running into billions of rupees.
13.9.
The Secy NHA added that for settlement of outstanding
land acquisition dues, NHA had moved a summary for Prime Minister
in Jun-2012 for one time allocation of Rs 11 billion but outcome is
awaited.
227th Meeting, April 29, 2013, Islamabad
13
13.10
The VP-NESPAK observed that the income & expenditure
statement available at Page-6 of the working paper show increase in
general & administrative items from Rs 11.60 billion in 2011 to Rs
21.96 billion in 2012 and this figure appears too high.
13.11.
The Member (Fin) clarified that the variation is because of
exchange loss in booking expenditure in foreign exchange.
13.12.
13.13.
The Member (Fin) also solicited permission for initiating
the process for appointment of Auditors for FY 2012-13. The
permission was granted.
Decision
13.14.
The Executive Board approved NHA (Entity) Financial
Statements for the year ended Jun 30, 2012 along with the following:Description
Rs in M
a. Additions to property, plant & equipment-at cost 788.719
b. Additions in capital work-in-progress
53939.773
13.15.
The Board granted permission to appoint Auditors for the
audit of NHAs Financial Statements for FY 2012-13 through
competition among the Audit firms listed with the State Bank of
Pakistan in Category-A.
Action By
14.
Member (Finance)
Agenda Item 10
Grant of BS-19 to Private Secretaries and Redesignation as Senior Private Secretary
14
14.2.
Mr Khalid Waseem
Mr Muhammad Yousaf
Mr Zafar Iqbal
14.3.
Later, Finance Division (Reg Wing) vide OM F No 19(55)
Legal-II/2010-1055 dated Dec 23, 2011, upgraded under-mentioned
posts wef Dec 23, 2011:a. Private Secretaries (BS-17).
i.
ii.
iii.
iv.
b. Stenographers (BS-15).
Upgraded to BS-16 with enhancement of qualification for
initial appointment from Intermediate to Graduation.
c.
Stenotypists (BS-12).
Upgraded to BS-14 with enhancement of qualification for
initial appointment from Matriculation to Intermediate
15
14.4.
NHA upgraded the above mentioned posts with Executive
Boards approval (212th meeting of Jan 26, 2012) notified vide Office Order
dated Mar 9, 2012. Accordingly, following PSs (BS-17) were upgraded
to BS-18 wef Dec 23, 2011:4.
5.
6.
Mr Javed Sultan
Mr Abdul Razzaq Khan
Mr Abdul Salam Khurshid
14.5.
The Estab Divs OM No 1/9/80-R-II of Jun 2, 1983
provides length of service for promotion as under:a.
b.
14.6.
The NHAs Employees Service Rules, 1995 are silent for
grant of BS-19 and nomenclature as Senior PS to PS (BS-18).
However, Rule 2 (3) of SRO 70 (KE)/95 of NHAs Service Rules 1995
provides, as under:In all matters not specifically provided in these Rules, the
Rules applicable to the employees of the Federal
Government shall apply.
14.7.
It is proposed that six senior most PS (BS-18) who fulfill
the criteria for grant of BS-19 in the light of Finance Divisions OM
dated Oct 23, 2011 and May 25, 2012 may be upgraded as Senior PS
(BS-19).
227th Meeting, April 29, 2013, Islamabad
16
14.8.
PERs quantification and calculation of service in BS-18
and below is given in Annex-E.
14.9.
The NHA Executive Board is the authority competent for
appointment to posts in BS-18 & 19 under Rule-6 of NHAs
(Appointments & Promotions) Rules 1995. The Board is, accordingly,
requested to approve the above proposal.
Boards Deliberations
14.10.
14.11.
Matter was discussed and cleared with directions that
action will be taken strictly in accordance with the Finance Division
(Reg Wing)s OM F No 19(55) Legal-II/2010-1055 dated Dec 23, 2011
and OM F No 1(1) R.I/2012.
Decision
14.12.
The Executive Board approved upgradation of following
6x Private Secretaries (BS-18) who fulfill the criteria given in Finance
Division (Reg Wing)s OM F No 19(55) Legal-II/2010-1055 dated Dec
23, 2011 and OM F No 1(1) R.I/2012 to BS-19 as Senior PS from the
dates mentioned against each:Seniority
Position
1.
2.
3.
4.
5.
6.
Action By
Name
Mr
Mr
Mr
Mr
Mr
Mr
Khalid Waseem
Muhammad Yousaf
Zafar Iqbal
Javed Sultan *
Abdul Razzaq Khan
Abdul Salam Khurshid
Effective
Date
23.12.11
23.12.11
23.12.11
23.12.11
15.07.12
23.12.11
Member (Admn)
17
Agenda Item 11
Writing-Off Loss Sustained by NHA : Theft of Toyota
Corolla LOZ-3239, Model 1996
15.
1
5.1.
This matter could not be discussed because of paucity of
time and will be taken up in the next Executive Board meeting.
Action By
Member (Admn)
Agenda Item 12
Writing-Off Loss Sustained by NHA : Theft of Toyota
Corolla Car No IDJ-5271, Model 1996
16.
16.1.
This matter could not be discussed because of paucity of
time and will be taken up in the next Executive Board meeting.
Action By :
Member (Admn)
Agenda Item 13
Writing-Off Loss Sustained by NHA : Theft of Toyota
Double Cabin No GA-9546, Model 2002
17.
17.1.
This matter could not be discussed because of paucity of
time and will be taken up in the next Executive Board meeting.
Action By
18.
Member (Admn)
Agenda Item 14
Award of Works : Construction of Amri Qazi Ahmed
Bridge Across River Indus Pack-III: Construction of
Left Guide Bank for Main Bridge
Background/Introduction.
a.
18
b.
c.
d.
18.2.
18.3.
b.
Due to enhancement of the Bridge from 2-lane to 4lane, revised PC-I of Rs 7292.11 million has been
recommended by Executive Board (222nd meeting of Oct
16, 2012) for approval by ECNEC through CDWP.
c.
19
II.
III.
a.
b.
c.
d.
e.
f.
Scope of Work
Main Bridge Length
Bridge Width
Lanes
Length of Approach Roads
Length of Alignment including Bridge
:
:
:
:
:
:
Detail
1.320 km
19.820 m
4
19.345 km
20.665 km
3.534 km
18.5.
Engineers Estimate. The estimated cost of Pack-III is Rs
325,622,571/- (CSR-2009 + 9.1%, Nawabshah).
18.6.
Procedure Adopted
b.
c.
Bid Invitation
Bid Documents
Purchased / Downloaded
Bid Submission
Bids Submitted
Technically Qualified
d.
e.
f.
Single-stage-twoenvelop
Dec 8, 2012
19 firms / JVs
Jan 7, 2013
14 firms / JVs *
2 firms *
20
18.7.
Technical Evaluation. Technical proposals were opened by
the Bid Opening & Evaluation (BO&E) Committee constituted as per
NHA Code and evaluated in accordance with eligibility criteria and
technical aspects specified in bidding documents. Only two bidders
meeting the requirements of Clause IB-3, 11.1A, 15, 18, 26.1, 26.2
and IB-35 were declared technically qualified.
18.8.
Financial Proposals. These were opened on Mar 28, 2013.
Following position emerged vis--vis estimate of Rs 325,621,340/(CSR-2009+ 9.1%):Lowest
Ranking
1st
2nd
(1)
Contractor
(M/s)
Sachal (1)
SMADB (2)
Announced
Bid (Rs)
339,106,313
587,182,860
Corrected
Variation
Bid (Rs)
339,106,366 +4.14%
587,182,860 +80.33%
(2)
18.9.
Recommendation. The Tender Acceptance Committee has
recommended award of contract to the lowest evaluated bidder M/s
Sachal at their corrected/evaluated bid price of Rs 339,106,366/.
18.10.
Boards Deliberations
18.11.
The Member (Planning) introduced the proposal. The GM
(P&CA) presented details.
18.12.
The Chairman stated that the Bridge was originally 2-lane
but the scope was revised to 4-lane on the directive of the President of
Pakistan. Spans were also enhanced subsequent to revised model
study undertaken in the wake of Superfloods-2010. These measures
delayed the project but for the past few months work was progressing
well. Lately, however, piling work again slowed down as water flow
reached a peak level of 30,000 cusecs against the average of 2500
cusecs for April.
21
18.13.
The AS (Fin) observed that modified PC-I though cleared
by the Board is yet to be considered by the CDWP. He enquired if
further works can be awarded without seeking anticipatory approval
of the modified PC-I.
18.14.
The Chief (T&C) clarified that the proposed river training
works being continuity of approved project can be awarded.
18.15.
The VP-NESPAK termed disqualification of 12 out of 14
competing firms including FWO on technical grounds as unusual.
18.16.
The Member (Plg) explained that technical qualification
criterion is predefined and the bidders are cleared based purely on the
analysis of documents submitted. Accordingly, technical evaluation
was carried out on the basis of comparison of bidders submissions
(face value) with criteria / threshold stipulated in bid documents (see
Annex-G). FWOs bid was not cleared as they failed to provide proof of
similar work experience and NHA was able to satisfy them of this
decision.
18.17.
22
b.
18.21.
Decision
18.22.
The Executive Board approved award of works for
Construction of Amri Qazi Ahmed Bridge across River Indus PackIII : Left Guide Bank for Main Bridge to the lowest evaluated bidder
M/s Sachal Engineering Works (Pvt) Ltd at their corrected / evaluated
bid price of Rs 339,106,366/- (Rupees three hundred & thirty nine million,
one hundred & six thousand, three hundred & sixty six) only; which is +4.14%
the estimate of Rs 325,621,340/- (CSR-2009+9.1%).
Action By
19.
Member (Planning)
Agenda Item 15
Award of Works : Construction of Pack-IV, Right
Guide Bank, J-Spur & Protection Bund Around Amri
Village : Amri - Qazi Ahmed Bridge Across River Indus
Background/Introduction.
a.
b.
23
c.
d.
19.2.
19.3.
b.
Due to enhancement of the Bridge from 2-lane to 4lane, revised PC-I of Rs 7292.11 million has been
recommended by Executive Board (222nd meeting of Oct
16, 2012) for approval by ECNEC through CDWP.
c.
Contract for main Bridge with an interchange at N55 and approach road Amri (3.285 km) & 3 x RBOD
Bridges was awarded to M/s Sachal for Rs 1511.67
million on Feb 2, 2010. Revised cost is Rs 2016.808
million due to major scope revision. Progress is
79%.
II.
III.
24
IV.
19.4.
a.
b.
c.
d.
e.
f.
Scope of Work
Main Bridge Length
Bridge Width
Lanes
Length of Approach Roads
Length of Alignment including Bridge
:
:
:
:
:
:
Detail
1.320 km
19.820 m
4
19.345 km
20.665 km
3.534 km
19.5.
Engineers Estimate. The estimated cost of Pack-IV is Rs
419,482,536/- (CSR-2009 + 9.1%, Dadu).
19.6.
Procedure Adopted
b.
c.
Bid Invitation
Bid Documents
Purchased / Downloaded
Bids Submitted
Bid Opening
Technically Qualified
d.
e.
f.
Single-stage-twoenvelop
Dec 8, 2012
18 firms / JVs
12 firms / JVs *
Jan 7, 2013
2 firms *
25
Lowest
Ranking
1st
2nd
(1)
Contractor
(M/s)
Sachal (1)
SMADB (2)
Announced
Bid (Rs)
410,888,313
595,360,770
(2)
Corrected
Bid (Rs)
410,888,324
595,360,770
Variation
(-)2.05%
+ 41.93%
19.9.
Recommendation. The Tender Acceptance Committee has
recommended award of contract for to the lowest evaluated bidder
M/s Sachal at their corrected/evaluated bid price of Rs 410,888,313/.
19.10.
Boards Deliberations
19.11.
The Member (Planning) introduced the proposal. The GM
(P&CA) presented details.
19.12.
The Board was informed that after a competitive bidding
process, position in this case was also similar to Pack-III of the river
training works for subject Bridge wherein only M/s Sachal & SMADB
were finally pre-qualified and gap between the bids submitted by the
two was also substantial. However, in this case, gap is 44% against
76% in Pack-III.
19.13.
19.14.
The Chief (NTRC) stressed that NHA should ensure timely
completion of necessary spadework including provision of working
drawings for expeditious commencement of construction activities and
to avoid burdening the exchequer with idling claims.
Decision
19.15.
The Executive Board approved award of works for
Construction of Amri Qazi Ahmed Bridge across River Indus, Pack-IV:
Right Guide Bank, J-Spur and Protection Bund around Amri Village
may be awarded to the lowest evaluated bidder M/s Sachal
Engineering Works (Pvt) Ltd at their corrected/evaluated bid price of
Rs 410,888,313/- (Rupees four hundred & ten million, eight hundred & eighty
eight thousand, three hundred and twenty four) only; which is (-) 2.05% the
estimate of Rs 419,481,185/- (CSR-2009+9.1%).
Action By
Member (Planning)
227th Meeting, April 29, 2013, Islamabad
26
20.
Agenda Item 16
Rationalization of Toll Rates on NHA Network
Maintenance Backlog.
a.
b.
c.
d.
27
20.4.
b.
20.5.
Proposal. Approval of rationalized toll rates, as per detail
given below, to be adopted wef Jul 1, 2013:Vehicle Category
A.
Increase
Pkm
25
35
75
90
90
175
30
40
80
180
180
180
0.6
0.8
1.6
3.6
3.6
3.6
2.3
0.1
0.1
0.1
1.8
1.8
0.1
0.7
150
250
350
510
650
800
1.0
1.6
2.3
3.3
4.2
5.2
3.1
0.1
0.2
0.3
0.5
0.5
0.6
0.4
370
620
870
1240
1600
2000
1.0
1.7
2.4
3.4
4.4
5.4
3.2
0.2
0.4
0.5
0.7
0.9
1.2
0.7
0.5
0.7
1.5
1.8
1.8
3.5
1.6
C.
Revised Toll
Rate
Pkm
National Highways
Car
Wagon
Buses
2 Axle Truck
3 Axle Truck
Articulated Truck
Average
B.
Existing Toll
Rate
Pkm
130
220
305
440
570
700
0.8
1.4
2.0
2.8
3.7
4.5
2.7
290
485
680
970
1260
1550
0.8
1.3
1.9
2.6
3.4
4.2
2.5
28
Vehicle Category
D.
Increase
Pkm
50
80
115
160
210
260
0.9
1.5
2.2
3.0
4.0
4.9
2.9
50
90
130
180
230
290
0.9
1.7
2.5
3.4
4.3
5.5
3.2
0.0
0.2
0.3
0.4
0.4
0.6
0.3
F.
Revised Toll
Rate
Pkm
E.
Existing Toll
Rate
Pkm
30
45
75
90
90
175
0.2
0.3
0.6
0.7
0.7
1.3
0.6
40
50
80
180
180
180
0.3
0.4
0.6
1.3
1.3
1.3
0.9
0.1
0.04
0.04
0.7
0.7
0.0
0.3
45
165
205
315
0.6
2.2
2.8
4.2
2.45
60
180
250
350
0.8
2.4
3.3
4.7
3.2
0.2
0.7
0.8
1.3
0.75
Articulated Truck
Average
Boards Deliberations
20.6.
20.7.
The GM (Ops) presented details stating that toll rates are
required to be revised after every three years according to a formula
approved by Executive Board (199th meeting of Nov 15, 2010) & endorsed
by National Highway Council (23rd meeting of Jan 11, 2011). Since the last
revision was carried out in Aug-2011, the next revision will be due in
2014.
20.8.
The Secretary NHA however, clarified that the Board had,
subsequently, reviewed the matter (206th meeting of Aug 11, 2011) and
approved rationalization of toll rates within 10 months. The Board had
then also directed as follows, as recorded in Para-16.15 of minutes:-
29
30
20.15.
The Secretary NHA added that despite directions by the
Executive Board in Aug-2011 for yearly toll rates rationalization,
action to this effect was not taken in 2012 because of lack of political
will. The rates if revised now ie wef around May 5, 2013 might be
implemented without much fuss as media attention is focused on the
forthcoming elections and the caretaker government has nothing at
stake with regard to backlash by transporters and goods carriers. The
elected government, which would be in position in Jun-2013, might
not like to venture into any action that is not well received publicly
right at the outset.
20.16.
The AS (Fin) endorsed the above statement with remarks
that immediate rationalization of toll rates appears desirable.
20.17.
The Members noted that revised toll rates for all kinds of
trucks on national highways have been suggested at a uniform rate
and this would not be acceptable to the truck owners:-
a.
b.
c.
Truck
2 Axle
3 Axle
Articulated
Existing
90
90
175
Proposed
180
180
180
20.18.
The Member (Operation) remarked that major
damage to NHA network is caused by 2 axle trucks and the aim is to
discourage these old vintage trucks from moving on to NHA network.
20.19.
The Member (Plg) remarked that financial appraisal of this
matter needs to be carried out and, thereafter, realistic toll rates per
car unit calculated. This would imply major deviation from existing
toll categories, particularly for trucks / trailers.
20.20.
The VP-NESPAK remarked that the road users are now
fully familiar with existing toll rates for various categories of vehicles
and any fiddling for change of categories might not be well received.
Toll rationalization should be on a set pattern while maintaining
existing ratio for each category as per past practice.
20.21.
Matter was discussed and it was decided that NHA will
work out two or three options for rationalization of toll rates and
present a fresh working paper for consideration by the Executive
Board in its next meeting.
227th Meeting, April 29, 2013, Islamabad
31
Decision
20.22.
The Executive Board considered the working paper
seeking toll rates rationalization on national highways & motorways
network and directed NHA to work out two or three options and
present a fresh working paper for consideration by the Executive
Board in its next meeting.
20.23.
The decision to review rationalization of toll rates after
three years stands modified and henceforth the rates will be reviewed
on yearly basis.
Action By
21.
Member (Operation)
Agenda Item 17
Award of Works of Seven Contracts (NCB) Under
Force Account to FWO : Flood Emergency
Reconstruction Project (FERP)
Introduction/Source of Funding.
a.
b.
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
NCB
S-15
N-17
N-18
N-19
S-3
N-10
N-11
S-5
Section
Dharki Panu Aaqil
Ramak Peshawar, Pack-I
Ramak Peshawar, Pack-II
Ramak Peshawar, Pack-III
Ubauro Sanjarpur
Chakdara Kalam, Pack-V
Chakdara Kalam, Pack-VI
Kashmore Kotri
Road
N-5
N-55
N-55
N-55
N-5
N-95
N-95
N-55
S :
South
N :
North
NCB : National Competitive Bidding
32
21.2.
b.
21.3.
Tendering Process.
21.4.
a.
b.
Road
iii.
N-5
N-55
N-55
iv.
N-55
v.
vi.
vii.
viii.
Ubauro Sanjarpur
Chakdara Kalam, Pack-V
Chakdara Kalam, Pack-VI
Kashmore Kotri
N-5
N-95
N-95
N-55
i.
ii.
Bid
Invitation
28-06-12
01-06-12
Documents
Issued
21
10
Bids
Received
6
1
Bid
Opening
23-07-12
26-06-12
01-06-12
07
26-06-12
01-06-12
06
26-06-12
01-06-12
24-05-12
24-05-12
23-08-12
04
14
14
13
2
5
3
6
15-06-12
13-06-12
13-06-12
12-09-12
33
21.5.
21.6.
Bid Evaluation.
a.
b.
Financial Evaluation.
Section
Dharki Panu Aaqil
Road
N-5
Estimate *
Evaluated Bid
Variation
i.
923,497,023
1,488,431,736
+61.17%
ii.
iii.
iv.
v.
vi.
vii.
viii.
N-55
N-55
N-55
N-5
N-95
N-95
N-55
429,659,479
566,036,004
503,320,678
522,451,685
873,523,396
719,432,667
513,908,868
657,509,467
883,031,166
727,422,910
820,589,969
1,409,438,668
1,158,967,801
1,012,044,076
+53.03%
+56.00%
+44.53%
+57.07%
+61.35%
+61.09%
+96.93%
21.7.
Eligibility of FWO.
a.
b.
34
c.
21.8.
b.
c.
21.9.
Justification. As per ADBs procurement guidelines 2010
(Para 3.8) Force Account viz construction by use of borrowers own
personnel and equipment, may be the only practical method for some
works. Use of Force Account may be justified if:a.
b.
c.
d.
35
21.10.
e.
f.
b.
c.
d.
e.
21.11.
NHAs Proposals. P&CA Section, on ADBs requirement,
forwarded a detailed proposal on Mar 1, 2013 to consider following
four projects under Force Account provisions. These projects fall
within the permissible limit of ADB ie +10% the estimate based on
CSR-2011.
36
NCB
Project
Name
Submitted
Bid (Rs)
Final Bid
(Rs)
Variation
Variation
(CSR 2009+9.1%)
(1)
(2)
N-17
Ramak- Peshawar
Pack-I
657,509,467
+53.03%
566,635,467
31.88%
3.98%
N-18
Ramak- Peshawar
Pack-II
883,031,166
+56.00%
764,149,166
35.00%
6.30%
S-3
Ubauro-Sanjarpur
820,589,969
+57.07%
730,909,907
39.90%
7.45%
S-15
Dharki-Panu Aaqil
1,488,431,736
+61.17%
1,291,999,736
39.90%
7.53%
(1)
(2)
21.12.
NCB
Estimate
Remaining 4 x Packages.
a.
b.
c.
Project
Name
Estimate
(CSR 2009+9.1%)
Evaluated
Bid (Rs)
Negotiated Bid
Final (Rs)
Variation
Variation
(1)
(2)
N-19
Ramak-Peshawar
Pack-III
503,320,678
727,422,910
727,422,910
+44.53%
+14.45%
N-10
Chakdara-Kalam
Pack-V
873,523,396
1,409,438,668
1,266,608,924
+45.00%
+25.52%
N-11
Chakdara-Kalam
Pack-VI
719,432,667
1,158,967,801
1,043,175,827
+45.00%
+25.53%
(1)
(2)
37
21.13.
NCB-S-05. Kashmore - Kotri processed for annulment on
account of exorbitant bid price vis--vis rates of CSR- 2011. ADBs
response on both the above proposals is awaited.
20.14.
Recommendation. NHA Executive Board is requested to
accord approval for awarding seven projects discussed in Paras21.11
& 21.12 to FWO under Force Account as per ADBs procedure and
guidelines. This shall be subject to final formal concurrence by ADB.
Boards Deliberations
21.15.
The Member (Planning) introduced the proposal. The GM
(P&CA) presented details.
21.16.
The Member (Plg) stated that scrutiny of documents & bid
evaluation reports consumed a considerable length of time meaning
thereby that hardly any space was left for a fresh procurement process
and completing construction activities within the limited time left
before expiry of loan period. It was in this context that ADB allowed
NHA to conduct negotiation with FWO for lowering of rates, as
permitted under ADB guidelines.
21.17.
The AS (Fin) remarked that foreign funded projects are
guided by the terms & conditions concluded in the loan agreement
and in case of any conflict with GoP rules / regulations, guidelines
provided by donors prevail.
21.18.
The Member (Plg) added that before negotiations with
FWO, to be on safe side, NHA also sought necessary clarification from
PPRA; which was received. Negotiations with FWO could not have
been successful but for the cooperation extended by the DG (FWO).
21.19.
The Chairman stated that deliberations held with FWO for
bringing down cost included three meetings conducted by him with
DG (FWO) and one at the level of the Secretary MoC (PAO).
21.20.
The VP-NESPAK pointed out that the negotiated bids for
Packs-V & VI of Chakdara - Kalam Road are more than 25.50% the
estimated cost based on CSR-2011 and appear too high and specific
reasons need to be put on record for recommending these bids.
227th Meeting, April 29, 2013, Islamabad
38
21.21.
The Member (Plg) clarified that bids are driven by ground
realities and market dynamics. These two packages are located in a
difficult terrain where security situation is not that conducive. For
Packs-I & II of Chakdara-Kalam, civil Contractors offered bids +120%
the estimated cost based on CSR-2009+9.1%. The ADB wanted NHA
to negotiate but NHA responded that the variation is too high and
negotiation is not likely to bear fruit.
21.22.
The Member (Plg) added only FWO is in a position to
deliver in this area but despite hectic persuasion they refused to offer
any further discount. However, variation for two bids for Packs-V & VI
of Chakdara - Kalam will come down further if compared with CSR2013, which is in final stage of compilation and will be presented for
approval before the next Board meeting. He stated that in the wrap-up
session, ADB authorized NHA to place the matter before the Executive
Board and gave an understanding that after Boards clearance, the
Bank will accord necessary concurrence.
21.23.
The JS (MoC) observed that length of various packages
proposed to be awarded to FWO is not mentioned. The requisite info is
given below:NCB
Project
Km
N-17
60
N-18
100
N-19
Ramak-Peshawar, Pack-III
196
S-3
Ubauro - Sanjarpur
10
S-15
32
N-10
Chakdara-Kalam, Pack-V *
N-11
Chakdara-Kalam, Pack-VI *
Note. * Works include culverts and retaining walls for flood protection.
21.24.
Matter was discussed and cleared with remarks that this
case will not be quoted as a precedent in terms of consideration with
respect to cost (above or below).
39
Decision
21.25.
The Executive Board approved award of following seven
projects to FWO under Force Account method as per ADBs
procedure and guidelines:NCB
Project
N-17
Negotiated Bid
Price (Rs)
566,635,467
N-18
764,149,166
6.30%
N-19
Ramak-Peshawar, Pack-III
727,422,910
14.45%
S-3
Ubauro - Sanjarpur
730,909,907
7.45%
S-15
1,291,999,736
7.53%
N-10
Chakdara-Kalam, Pack-V
1,266,608,924
25.52%
N-11
Chakdara-Kalam, Pack-VI
1,043,175,827
25.53%
Variation *
3.98%
21.26.
The above decision is subject to final formal concurrence
by ADB and completion of codal formalities.
Action By
22.
Member (Planning)
Agenda Item 18
PC-I for Technical Assistance for Implementation of
Bridge Management System in NHA Through JICA
Background/General Description.
a.
b.
40
c.
22.2.
22.3.
For continuous & quality maintenance, rehab, upgradation and preservation of this precious highway
asset, NHA prepares an yearly Annual Maintenance
Plan (AMP) based on available resources. Pavement
condition & road roughness survey of the entire
national highway/ motorway network is conducted
followed by strategy analysis to define maintenance
funding needs.
b.
c.
41
b.
22.4.
22.5.
b.
c.
b.
c.
d.
Devise
policies/plans
for
sustainability
and
robustness by continuous bridge inspections and
updation of BMS data by Regional Offices.
e.
42
22.6.
f.
g.
Cost Summary.
a.
b.
22.7.
Financing Plan.
F/Year
a.
b.
c.
d.
2013-14
2014-15
2015-16
Total
(1)
(1)
Local
(Rs in M)
12
15
5
32
22.8.
22.9.
FEC
US$ in M
1.0446
0.9696
0.4858
2.5
43
b.
22.10.
b.
1.
2.
3.
4.
5.
6.
7.
22.11.
Category
Project Director/ Member (Operation)
Project Manager/ Director (RAMS)
Project Coordinator/ DD (BMS)
Assistant Project Coordinator/ AD (BMS)
Surveyor
Driver
Naib Qasid
Total Staff
Post
Exists
Exists
1
2
2
3
2
10
b.
Boards Deliberations
22.12.
The Member (Planning) introduced the proposal. The GM
(Ops) presented details.
22.13.
44
Decision
22.14.
The Executive Board rrecommended the PC-I for technical
assistance for implementation of Bridge Management System costing
Rs 276 million (including JICA grant of FEC US$ 2.5 million) for approval by
CDWP.
22.15.
The Board also approved creation of Bridge Management
Unit with the requirement as stated in Sub-Para-22.10(b) above.
Action By
23.
23.1.
The Chief (T&C) pointed out that the respectable Members
of NHA Executive Board are posted out as a matter of service norm.
While in position, they make valuable contribution for improvement of
NHAs working system through qualitative decision making having
long term bearing. However, there is no system for formal
acknowledgement of services rendered by such distinguished
Members contrary to the traditions followed by other major public
sector organizations.
23.2.
The Chief (T&C) proposed that NHA should formally dine
out the outgoing Board Members. A letter of appreciation should also
be issued by the Chairman NHA on behalf of the Board.
23.3.
Action By
24.
Conclusion
24.1.
The Chairman wrapped up the meeting by thanking the
Board Members for their active participation and useful input.
-------------------
45
EXTRACTS
CONFIRMED MINUTES OF THE
227TH EXECUTIVE BOARD MEETING
APRIL 29, 2013 AT ISLAMABAD
46