The National Highways Authority (NHA) provided undue benefit to the tune of multibillion rupees to selected contractors over the years, Auditor General Pakistan officials revealed. Senior Audit officials while briefing a subcommittee of the Public Accounts Committee, which met here under the chairmanship of Sardar Ashiq Hussian Gopang, said that audit department has unearthed various such cases wherein NHA gave undue financial benefit to contractors.
The committee is discussing and reviewing audit paras of the Ministry of Communication and attached departments of the financial year 2009-10. Responding to the audit objections Chairman NHA Shahid Ashraf Tarar said that the under discussion paras are regarding the construction of Islamabad-Muzaffarabad dual carriageway, which first was designed in 1991 with an estimated cost of Rs 2 billion but owing to this reason or that could not completed. He said that due to such a prolonged delay, the road cost escalated to Rs 12 billion and no party was given undue financial benefit.
Tarar said that Lowari Tunnel project remained delayed for almost 40 years but the current government is implementing it, adding that having such long delays in infrastructure projects are only resulting in escalating financial costs manifold.
He said that the National Highways Council approved the construction of first phase of the road, ie from Satra Mile to Jhika Gali in 1992 for which the contract was concluded in June 1993 between NHA and M/s DITCO (Development International Trade Corporation), a Saudi company with Pakistani partner (M/s Hakas), for a total value of Rs 2.187 billion with a completion period of 22 months.
Tarar said mobilisation advance amounting to Rs 212 million was paid to the contractor as per provisions of the contract, however, the contractor failed to provide performance guaranteed in the stipulated time due to which the contract was terminated in August 1993, but the mobilisation advance remained with the contractor. Contesting the termination order, the contractor filed an application for arbitration in 1996, and lodged a claim of Rs 900 million, but the arbitrator rejected DITCO's claim in 1999 and decided in favour of NHA for refund of mobilisation advance along with forfeiture of bid security valuing Rs 256 million, he added.
The NHA Board revived the contract in its 89th meeting held on 04.08.1999 and the Board authorised the chairman to take final decision regarding the terms and conditions necessary for revival of the contract. The Board also desired that PC-I of the project be got approved from the competent authority. Agreement for revival was signed on 28.08.1999 by setting aside the decision of the arbitrator and assigning the project from M/s DITCO to M/s Hakas on the same terms and conditions. However, the entire row was ultimately handed over by November 2003 but work could not be completed by the contractor till January 2010 when the audit was conducted. On the other hand, eight extensions were granted by NHA for one reason or the other. The last extension was granted up to April 2010 by showing that 97% of the work had been completed by January 2010.
Responding to a query asked by the committee members regarding stoppage of work on China-Pakistan Economic Corridor (CPEC) projects, the Chairman NHA said that the works on the CPEC projects are going in full swing and nowhere progress has been stalled.
After the meeting, the chairman NHA talking to Business Recorder said that the authority at present is working on 82 different roads and infrastructure projects across the country. He said that out of 82 projects, 13 are motorways projects. He said that the authority has also sped up the pace of work on Dera Ghazi Khan-Loralai Road which has been remained uncompleted since decades. He said that the road will be completed within next two-and-a-half-year. The chairman said that the authority is using drones to monitor the progress on CPEC related projects and after every 15 days, progress is reviewed by the senior officials to ensure completion of each and every project within stipulated time period.
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