Financial management of revenues: NHA board underscores need for creation of ‘Road Development Fund’

ISLAMABAD: The National Highways Authority (NHA) Executive Board has recommended for creation of “Road Development Fund (RDF)” of the authority for financial management of revenues generated from the Build Operate Transfer/Public Private Partnership BOT/PPP projects, it is learnt.

Official sources revealed to Business Recorder that the Executive Board has recommended proposals for approval of the National Highway Council, which includes (a) amendment in Roads Maintenance Account (RMA) Rules 2003 to enable NHA to create RDF for financial management of revenues generated from the BOT/PPP projects; (b) creation of RDF; and (c) TORs of RDF as reviewed by Audit Committee.

The Board further directed, (a) RDF Management Committee (RDFMC) must be managed directly by the NHA Executive Board with the assistance of Audit Committee; (b) the Audit Committee will also review the TORs of Road Development Fund prior submitting to National Highway Council for its creation and amendment in RMA Rules 2003.

The NHA Executive Board considered the matter regarding “Development of a Business Plan for NHA” and decided that guidance be sought from Deputy Chairman Planning Commission (DCPC), who is head of the oversee committee before taking any further course of action in the matter.

The Board approved Addendum No 01 of M/s Republic Engineering Corporation (Pvt) Ltd in JV with M/s LOYA Associates and M/s TETCHNIA Consulting and Management Engineers for construction supervision of 4-lane bridge across River Indus linking Layyah with Taunsa including 2-lane approach road and river training works (24.272km) amounting to Rs43.036 million with revised contract cost of Rs 187.652 million overall increase of 36.25 percent and EOT as per construction period for Package-II.

The NHA Executive Board approved the following: a. Construction Cost of Rs 4.080 billion for construction of Speena Morr Bypass (11.8km 4-lane new construction) determined after detail design on contract rates. b. Re-appropriating of BOQ by utilizing the saving Rs.1.75 billion determined by “The Engineer” of the project as per actual site requirement. c. Variation Order No 01 for Dualisationand Improvement of Indus Highway Package-2 Karak to Kohat, including Speena Morr Bypass (11.8km) amounting to Rs 2.329 billion - (having overall aggregate increase 19.50 percent above the original contract price), already approved by NHA Executive Board in its 346th meeting held on January 11, 2021.

The NHA Executive Board approved the Extension of Time-2, in the “Contract for Dualisation and Improvement of Pindi Gheb – Jand - Kohat Road, Upgradation/Dualisation of Motorway Link from Kohat via Jand (Package-3)”, to M/s KNK-SKB (JV) of Khushalgarh–Kohat Road 38.06 km (Package-III) from October 01, 2021 till April 30, 2022 (7.0 months) with financial effect of Rs 531.869 million.

Copyright Business Recorder, 2022