227 Executive Borad Meeting of NHA

NHA Executive Boards Confirmed Minutes
NATIONAL HIGHWAY AUTHORITY

Secretariat Section
CONFIRMED MINUTES
Subject:
227th Meeting of the NHA Executive Board Held on Apr

29, 2013 at Islamabad
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.
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
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.
227th Meeting, April 29, 2013, Islamabad
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.
Quetta - Sukkur (N-65)

Multan - DG Khan (N-70)
DG Khan - Taunsa (N-55)
Bridge across River Indus linking Zahirpur (N-5) Chachran Sharif (N-55)
Khushalgarh Bridge across River Indus (N-80)
Larkana Package
Bridge across River Indus linking Qazi Ahmed - Amri
2.5.
During the period under review, following inauguration/
groundbreaking ceremonies were graced by the President of Pakistan:a.
Inauguration of Rasheedabad Chowk Flyover of Inner

Ring Road Multan on Mar 5, 2013.
b.
Groundbreaking of Syedwala Bridge across River

Ravi on Mar 5, 2013.
c.
Inauguration of Mir Wah Sanjar Chang Road to

Hyderabad - Badin Road on Mar 9, 2013.
d.
Groundbreaking of Karachi - Hyderabad Motorway

(M-9) on Mar 9, 2013.
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:
NCB contracts already awarded

NCB contracts (proposed to be awarded today)
NCB contract (clearance awaited from ADB)
ICB contracts (to be procured by Jun 30, 2013)
Total
11
7
1
6
25
National Competitive Bidding

International Competitive Bidding
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.
Operational Issues Concerning NHA Network
3.1.
The IG (NH&MP) stated that he would like to avail the
opportunity to highlight some important operational issues:a.
Theft of fence on Motorways (M-1 & M-2) is continuing

unabated and, because of this menace, movement of
stray animals and trespassing by locals is increasing
day-by-day and this is seriously compromising road
safety on this access control facility. Apart from other
measures, foot patrolling is being introduced. For
this purpose, NH&MP needs manpower from NHA.
b.
In terms of an understanding reached with Goods

Transport Association (GTA) strict enforcement
measures are being taken effective Apr 15, 2013 and,
instead of fine, overloaded vehicles are not being
allowed to ply on national highway & motorways. The
GTA is also responding positively and is gradually
cutting down on overloading; consequently, fine
money is dwindling. Since operation, management &
maintenance contractors are running weigh stations
on profit sharing basis, they are disgruntled and
wish to close down services.
3.2.
The Chairman NHA responded with following remarks:a.
NHA is contemplating various measures for putting a

check on theft of fencing. One step is to include
management of fence in routine maintenance
contracts for different reaches at a suitable cost. The
RM Contractor will take full responsibility for
ensuring that the fence is not stolen and all gaps are
promptly closed.
b.
The IG (NH&MP)s request for provision of manpower

is also receiving attention and, as a first step, 150
persons are being detailed. Note. Cost involved will be
met 50:50 (NH&MP : NHA) out of police fine money.
Appropriate logistic support would be required for
them in different camps.
c.
NHA floated a proposal for Overlay & Modernization

of Motorway (M-2) on BOT Basis and the process of
finalizing concession agreement with FWO (JV) is in
advance stage. This concession, if & when finalized,
will be all encompassing including measures for
check on theft of fencing and immediate plugging of
gaps, if any.
d.
Through check on overloading, NHAs main interest

is to safeguard its precious network and this can
only be ensured through strict enforcement. Because
of the decision not to allow any overloaded truck on
national network, NHA has received threats of strike
by goods carriers particularly those transporting coal
wef May 5, 2013. The apprehension of weigh station
operators will also be looked into.
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.
FORMAL BOARD PROCEEDINGS

4.
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.
The minutes were accepted for confirmation.
Decision
5.4.
The Executive Board confirmed minutes of 225th meeting
held on Feb 11, 2013 with following amendments:a.
In Agenda Item 2 Award of Works under FERP:

NCB-N-14 Rehabilitation of KohalaMuzaffarabad
Road, Pack-III, Construction of Chattar Kalas and
Dulai Bridges (S-2) replace Para 5.15 (d) as follow:For:
The VP-NESPAK stated that to avoid

complications due to addition of 6%
income tax in the bid of FWO or NLC after
opening, in future contracts; it might be
desirable to seek policy decision from GoP
after getting prior legal advice.
Read:
The VP-NESPAK stated that to avoid

complications in future contracts; due to
addition of 6% income tax in the bid of
FWO or NLC after opening, and the fact
that they are also not required to submit
performance & mobilization advance
guarantees, it might be desirable to seek
policy decision from GoP after getting
prior legal advice.
b.
In Agenda Item 4 Award of Works Under FERP:

NCB-N-16 Rehab of Khairabad Nowshera Road
(Km 1647+000 to Km 1652+000) (5 Km, N-5) add
following at the end of Para 7.14:subject to completion of codal formalities.
c.
In Additional Agenda Item-I Award of Works Under

FERP: NCB-S-13 Rehab of Jacobabad - Dera Allah
Yar Road (Km 83 - 95) and Jacobabad City - Dera
Allah Yar (Km 75 - 80) (N-65)add following at the
end of Para 18.25:subject to completion of codal formalities.
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.
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.
The minutes were accepted for confirmation.
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.
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.
Action By
Member (Operation)
Agenda Item 6
Toll Exemption at Qutbal Toll Plaza, Tehsil Fatehjang
(N-80)
10.
10.1.
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.
Action By
12.
Member (Aided Projects)

Agenda Item 8
Approval of Accounts of Road Maintenance Account
(RMA) for the Year Ended June 30, 2012
Introduction - Working Paper

12.1.
Introduction. Accounts of Road Maintenance Accounts
(RMA) for period ended Jun 30, 2012 have been prepared by Finance
Wing in line with accounting policies given in NHAs Financial Manual
and according to International Financial Reporting Standard (IFRS).
12.2
Audited Financial Statements.

a.
After auditing the RMA Financial Statements for the

year ended Jun 30, 2012, M/s Ilyas Saeed & Co,
Chartered
Accountants
"The
Auditors"
have
submitted the audited financial statements of RMA
duly initialed for formal approval by Executive Board.
b.
Out of four qualifications appearing in last year's

(2010-11) Audit Report, two on revenue collection
and contingencies and commitment have been
removed in current year audit (2011-12).
10
12.3.
Auditors Opinion.
a.
Proper books of accounts have been kept by RMA;
b.
Balance sheet and income and expenditure account

together with the notes thereon have been drawn up
appropriately and are in agreement with the books of
accounts and are further in accordance with
accounting policies consistently applied;
c.
Expenditure incurred during the year was for the

purpose of RMAs operation; and
d.
Operations conducted & expenditure incurred during

the year was in accordance with the objects of RMA.
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
b. Additions in capital work-in-progress
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.
Matter was discussed and cleared.
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
a. Additions to property, plant & equipment-at cost 25.012

Action By
646.052
Member (Finance)
11
13.
Agenda Item 9
Approval of Accounts of National Highway Authority
(Entity) for the Year Ended Jun 30, 2012

13.1.
Introduction. Accounts of NHA for the period ended Jun
30, 2012 have been prepared by Finance Wing in line with accounting
policies given in NHAs Financial Manual and according to
International Financial Reporting Standard (IFRS).
13.2.
13.3.
Audited Financial Statement.

a.
After auditing the Entity Financial Statements for

the year ended Jun 30, 2012, M/s Ilyas Saeed & Co,
Chartered
Accountants
"The
Auditors"
have
submitted the audited financial statements duly
initialed for formal approval by NHA Executive Board.
b.
Out of three qualifications appearing in last year's

(2010-11) Audit Report, one on revenue collections
has been removed in current audit (2011-12).
Auditors Opinion.
a.
Proper books of accounts have been kept as required

by NHA Act, 1991 (amended 2001);
b.
Balance sheet and income and expenditure account

together with the notes thereon have been drawn up
appropriately and are in agreement with the books of
accounts and are further in accordance with
accounting policies consistently applied;
c.
Expenditure incurred during the year was for the

purpose of the Authoritys operation; and
d.
Business conducted, investments made and

expenditure incurred during the year were in
accordance with the objects of the Authority.
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
53939.773
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.
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
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

14.1.
Pursuant to approval by the Prime Minister, Estab Div
notified grant of BS-18 to Private Secretaries (PS) on completion of
seven (7) years satisfactory service in BS-17 wef Jan 26, 2009 vide OM
No 4/1/98-R-6 dated Feb 4, 2009.
14
14.2.
Consequent upon approval by NHA Executive Board (207th

meeting of Aug 23, 2011), following regular PS (BS-17) were granted BS-18
wef Apr 1, 2011 vide Office Order dated Nov 10, 2011:1.
2.
3.
Mr Khalid Waseem
Mr Muhammad Yousaf
Mr Zafar Iqbal
Note : Names given in order of seniority.
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.
Will continue to remain in BS-17 and will be granted

BS-18 after putting in 5 years satisfactory service
instead of 7 years.
ii.
Those in BS-18 will further be granted BS-19 after

putting in 12 years services in BS-17 and above
taking benefit of Estab Divs OM No 4/ 9/S) R-II of
Aug 2, 1983.
iii.
On grant of BS-19, nomenclature of the post will be

Senior Private Secretary.
iv.
Existing Private Secretaries in BS-17 will be granted

BS-18 on one time basis irrespective of their length of
service in BS-17.
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
Note : Names given in order of seniority.
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.
Where initial appointment of a person already in

government service takes place, on recommendations
of the Federal Public Service Commission, in a post
in BS-18, 19 or 20, the length of service specified in
this OM shall be reduced by the periods specified in
proviso (i).
b.
Where first appointment of a person other than a

person covered by proviso (ii) was made to
government service in BS-16 or below, one-half of the
service in BS-16 and one-fourth in BS-15 and below
may be counted as service in BS-17 for computing
length of service for the purpose of promotion only.
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).
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.
14.10.
The Member (Admin) presented details.
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
Retired on attaining the age of superannuation wef 31-3-12
Member (Admn)
17
Agenda Item 11
Writing-Off Loss Sustained by NHA : Theft of Toyota
Corolla LOZ-3239, Model 1996
15.
1
5.1.
Action By
Member (Admn)
Agenda Item 12
Corolla Car No IDJ-5271, Model 1996
16.
16.1.
Action By :
Member (Admn)
Agenda Item 13
Double Cabin No GA-9546, Model 2002
17.
17.1.
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

18.1.
Background/Introduction.
a.
Due to linear geography of Pakistan, National

Highway (N-5) & Indus Highway (N-55) are basic
south-north arteries traversing astride River Indus.
18
b.
N-5 carries about 65% of freight & passenger traffic

and caters for 80% of national economic activities.
N-55 is being developed for bringing the areas west
of River Indus at par with that in east which are
historically more developed. Another aim is to ease
traffic burden on N-5.
c.
To meet the objective and improve accessibility of a

large area, more crossing points across River Indus
connecting N-5 ~ N-55 are imperative. Projects
undertaken include:i.
ii.
iii.
iv.
d.
18.2.
18.3.
Larkana - Khairpur Bridge (completed).

Shaheed Benazir Bhutto Bridge (ongoing).
Khushalgarh Bridge in District Kohat (ongoing).
Amri - Qazi Ahmed Bridge (ongoing).
This working paper deals with Amri - Qazi Ahmed

Bridge.
PC-I of Amri Bridge - Qazi Ahmed Across River Indus.

a.
PC-I for construction of this Bridge (between Hyderabad

Bypass and Dadu - Mora Bridge) was approved by ECNEC
at a cost of Rs 3683 million on Jan 21, 2010.
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.
PSDP allocation 2012-13 is Rs 500 million.
Construction Packages / Contracts.

I.
Contract for main Bridge with an interchange at

N-55 & 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%.
19
II.
Contract for approach road to Qazi Ahmed (N-5, 16

km) was awarded to M/s SMAD Baloch on Apr 9,
2010 for Rs 1510 million. Progress is 54%.
III.
Contract for construction of left guide bund for main

Bridge is now to be awarded. This working paper
deals with Pack-III.
IV. Contract for construction of right guide bank bund,

J-spur & protection bund around Amri village is yet
to be awarded. This matter is also on todays agenda.
18.4.
Revised Scope of Work.
a.
b.
c.
d.
e.
f.
Scope of Work
Main Bridge Length
Bridge Width
Lanes
Length of Approach Roads
Length of Alignment including Bridge
Length of Guide Banks
:
:
:
:
:
:
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.
Tendering Process/Technical Qualification.

a.
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 *
Note. * List of firms / JVs is at Annex-F.
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
Sachal Engineering Works
Corrected
Variation
Bid (Rs)
339,106,366 +4.14%
587,182,860 +80.33%
(2)
Sardar M Ashraf D Baloch
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.
Proposal. Approval of the above recommendation.
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.
The Chairman added that the Secretary (MoC) / PAO (Mr

Anwar Ahmad Khan) was personally overseeing the procurement process
for the subject river training works and that he was fully satisfied with
the sanctity of the entire bidding proceeds.
18.18.
The JS (MoC) observed that the lowest bid is only +4.14%
of the estimated cost based on CSR-2009+9.1% and appears too low
and enquired if the Contractor would be able to deliver the project.
18.19.
The Chief (T&C) pointed out that variation between the
two bids is extraordinary (76%) and this is quite abnormal.
18.20.
The Member (Planning) clarified, as follows:a.
M/s Sachal is a reputed Contractor and only few

years back completed construction of Larkana Khairpur Bridge across River Indus. They are also
constructing Qazi Ahmed - Amri main Bridge, which
is also nearing completion. They possess requisite
capability and experience to deliver the subject river
training works also despite low rates.
22
b.
18.21.
M/s SMADB is also a reputed Contractor and like

M/s Sachal is engaged on construction of approach
road for Qazi Ahmed - Amri Bridge. It is inexplicable
as to why they opted to submit an exceedingly high
bid. Perhaps they are overcommitted and also
because the owner is presently embroiled in a high
profile court case.
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

19.1.
Background/Introduction.
a.
Due to linear geography of Pakistan, National

Highway (N-5) & Indus Highway (N-55) are basic
south-north arteries traversing astride River Indus.
b.
N-5 carries about 65% of freight & passenger traffic

and caters for 80% of national economic activities. N55 is being developed for bringing the areas west of
River Indus at par with that in east which are
historically more developed. Another aim is to ease
traffic burden on N-5.
23
c.
To meet the objective and improve accessibility of a

large area, more crossing points across River Indus
connecting N-5 ~ N-55 are imperative. Projects
undertaken include:1. Larkana - Khairpur Bridge (completed).
2. Shaheed Benazir Bhutto Bridge (ongoing).
3. Khushalgarh Bridge in District Kohat (ongoing).
4. Amri - Qazi Ahmed Bridge (ongoing).
d.
19.2.
19.3.
This working paper deals with Amri - Qazi Ahmed

Bridge.
PC-I of Amri Bridge - Qazi Ahmed Across River Indus.

a.
PC-I for construction of this Bridge (between Hyderabad

Bypass and Dadu - Mora Bridge) was approved by ECNEC
at a cost of Rs 3683 million on Jan 21, 2010.
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.
PSDP allocation 2012-13 is Rs 500 million.
Construction Packages / Contracts.

I.
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.
Contract for approach road from left abutment to

Qazi Ahmed (N-5) (16 km) was awarded to M/s
SMAD Baloch on Apr 9, 2010 for Rs 1510 million.
Progress is 54%.
III.
Contract for construction of left guide bund for

main bridge is yet to be awarded.
24
IV.
19.4.
Contract for construction of right guide bank bund,

J-Spur and protection bund around Amri village is
now to be awarded. This working paper deals with
Pack-IV.
Revised Scope of Work.
a.
b.
c.
d.
e.
f.
Scope of Work
Main Bridge Length
Bridge Width
Lanes
Length of Approach Roads
Length of Alignment including Bridge
Length of Guide Banks
:
:
:
:
:
:
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.
Tendering Process/Technical Qualification.

a.
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 *
Note. * List of firms / JVs is at Annex-H.

19.7.
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. Documents of only
two bidders meeting the requirements of Clauses IB-3, 11.1A, 15, 18,
26.1, 26.2 and IB-35 were found authentic.
19.8.
Financial Proposals. These were opened on Mar 28, 2013.
Following comparative position vis--vis estimate of Rs 419,482,536/(CSR-2009+ 9.1%, Dadu) emerged:227th Meeting, April 29, 2013, Islamabad
25
Lowest
Ranking
1st
2nd
(1)
Contractor
(M/s)
Sachal (1)
SMADB (2)
Announced
Bid (Rs)
410,888,313
595,360,770
Sachal Engineering Works
(2)
Corrected
Bid (Rs)
410,888,324
595,360,770
Variation
(-)2.05%
+ 41.93%
Sardar M Ashraf D Baloch
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.
Proposal. Approval of the above recommendation.
19.11.
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)
26
20.
Agenda Item 16
Rationalization of Toll Rates on NHA Network

20.1.
Introduction. NHA is the custodian of a road network of
around 12000 km that primarily serve inter-provincial long distance
traffic plying through important commercial cities and major freight
terminals. NHA roads are only 4.6% of Pakistans entire road network,
but carry more than 80% of the country's traffic.
20.2.
Toll. NHA Act 1991 (amended 2001) empowers NHA to
collect toll on its network as stated in Section-10(2)(vii), Chapter-III.
20.3.
Maintenance Backlog.
a.
Maintenance needs of NHA network are met through

routine, periodic & emergency maintenance,
geometrics & highway safety improvements, corridor
management, hill slope stability, etc.
b.
Under the constraints of low budget and higher

traffic volumes on an ever-expanding network, it is
essential to use available resources and budget in a
most efficient and optimal way to maintain desired
standards of performance & serviceability.
c.
Improvement in maintenance standards has resulted

in increased maintenance cost. But this has a direct
relationship with VOC (Vehicle Operating Cost); which is
reduced, rendering a healthy influence on economy.
d.
Since toll rates do not match ever-increasing repair &

maintenance cost and also as almost 50% of NHA
network is not tolled but still has to be appropriately
maintained, NHA is unable to meet the growing
needs and this is widening the maintenance backlog.
27
20.4.
Rationalization of Existing Toll Rates.

a.
There is a need to rationalize current toll rates, toll

revenue being the major source contributing to RMA
dedicated solely for operation & maintenance (O&M)
of NHA network.
b.
The O&M cost of motorways is much higher than

national highways. Since the revenue generated is insufficient to cater for O&M needs, maintenance of
motorways has to be subsidized. To make motorways
operate at least at breakeven level toll rates need
suitable rationalization.
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
IslamabadPeshawar Motorway (M-1)

Car
Wagon
Coaster
Bus
Rigid Truck
Articulated Truck
Average
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
Lahore - Islamabad Motorway (M-2)

Car
Wagon
Coaster
Bus
Rigid Truck
Articulated Truck
Average
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
Karachi - Hyderabad Superhighway (M-9)

Car
Wagon
Bus
2 Axle Truck
3 Axle Truck
Articulated Truck
Average
F.
Revised Toll
Rate
Pkm
Pindi Bhattian Faisalabad Motorway (M-3)

Car
Wagon
Coaster
Bus
Rigid Truck
Articulated Truck
Average
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
Kohat Tunnel (N-55)

Car
Wagon
Bus/2 & 3 Axle Truck
Articulated Truck
Average
20.6.
The Member (Ops) introduced the proposal.
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
16.15. After detailed discussion it was agreed that the

toll rates would be rationalized on yearly basis
preferably in a manner that the application is
ensured wef first of July each year and that toll
rates proposed for M-3 would be applied for M-1
& M-2 also.
20.9.
The VP-NESPAK endorsed this statement with remarks
that the issue was raised by him personally as toll rates in Pakistan
are lowest in the region and not commensurate with high operation &
maintenance cost.
20.10.
The Chief (T&C) remarked that the rationale for revision of
toll rates and revenue impact of the proposed increase is not given.
20.11.
The Chairman remarked that NH&MP in collaboration
with NHA is enforcing strict measures effective Apr 15, 2013 for check
on over-loading and, instead of fine, overloaded vehicles are not being
allowed to ply on national highways & motorways. Because of this,
NHA has received threats of strike by goods carriers association
particularly those transporting coal wef May 5, 2013. Any increase in
toll rates at this stage might not be well received, therefore, he would
request for approval, in principle, for the proposed toll rationalization,
for implementation at a later date.
20.12.
The Chairman remarked that there is presently major
shortage of trucks in Pakistan and if the axle overload measures are
implemented in a harsh manner, the gap will widen and disturb
overall economic activity in the country.
20.13.
The Chief (NTRC) remarked that the road users need to be
educated for any enhancement in toll rates, therefore, NTRC in
collaboration with NHA may carryout necessary study for proposed
rationalization before implementation.
20.14.
The Secretary NHA remarked that since the last revision
of toll rates in Aug-2011, the prices of key construction material have
registered major increase while value of rupee has depreciated
considerably vis--vis US dollar and even the rationalization of toll
rates suggested for various categories of vehicles in Para-20.5 will not
be able to offset the cost impact. Nevertheless, rationalization of toll
rates to an extent; which is absorbed without a backlash is necessary.
Note. A table showing comparative status of variation in cost of key
construction material is at Annex-J.
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.
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)

21.1.
Introduction/Source of Funding.
a.
Pakistan has received a Loan Pak-2742 from Asian

Development Bank (ADB) towards the cost of Flood
Emergency Reconstruction Project (FERP).
b.
Following projects are, inter-alia, included in FERP:-
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.
Global PC-I of FERP.

a.
Global PC-I 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: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.
21.3.
Revised PC-I is being finalized for clearance by NHA

Executive Board before submission to CDWP.
Tendering Process.
21.4.
a.
NHA & ADB agreed to carry out procurement of

subject works on single-stage-two-envelopes basis in
accordance with ADBs guidelines.
b.
Escalation shall not be applicable on contracts

having 12 months or less duration. Being 9 months
project, escalation will not be applicable.
Package-wise Tendering Detail.

Section
Road
iii.
Dharki Panu Aaqil

Ramak Peshawar, Pack-I
Ramak Peshawar, Pack-II
N-5
N-55
N-55
iv.
Ramak Peshawar, Pack-III
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.
After receiving ADBs concurrence on Technical Bid

Evaluation Reports (TBERs), FWO emerged as the
only responsive and technically qualified bidder for
all eight packages.
b.
Financial bids were opened by the Bid Opening &

Evaluation (BO&E) Committee constituted in
accordance with NHA Code. Submitted price bids
were evaluated in detail in accordance with ADBs
Standard Procedures.
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.
Ramak Peshawar Pack-I

Ramak Peshawar Pack-II
Ramak Peshawar Pack-III
Ubauro Sanjarpur
ChakdaraKalam Pack-V
ChakdaraKalam Pack-VI
Kashmore Kotri
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%
* Engineers estimates based on CSR 2009+ 9.1%
21.7.
Eligibility of FWO.
a.
ADB conditionally technically qualified FWO in all

packages as its eligibility (legal & financial autonomy) as
per the Bank remained under debate. Bid evaluation
of one sub-project (Kohala Muzaffarabad, ICB-N-03)
revealed that FWO avails tax exemption from GoP.
b.
Multiple cycles of correspondence were followed by

meetings involving NHA, FWO and ADB in the last
quarter of 2012. FWO asserted that tax exemption
status does not limit their financial / legal autonomy
and it fulfills the requirement of being a legally and
financially autonomous SOE (State Owned Enterprise).
34
c.
21.8.
Documentary evidence furnished by FWO was not

considered cogent by ADB; which, on Jan 15, 2013,
disqualified FWO for not fulfilling eligibility criteria of
ADBs procurement guidelines (Para 1.8c). ADB also
did not consider FWO as legally autonomous to the
borrower & treated it as a government agency (SOE).
Force Account Method of Procurement.

a.
As procurement process by that time had already

entered financial bid opening & evaluation stage,
ADB suggested that FWO (single bidder) may be
considered eligible as a Force Account unit under
ADB guidelines (Para 3.8).
b.
NHA requested ADBs formal concurrence to use

Force Account method of procurement for entering
into contract with FWO.
c.
ADB, on Feb 18, 2013, sought a detailed proposal on

NHAs recommendations and suggested that rates
may be negotiated with FWO on contracts where the
bid exceeded NHAs CSR-2011 by more than 10%.
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.
Quantities of work involved cannot be defined in

advance.
b.
Works are small and scattered or in remote locations

for which qualified construction firms are unlikely to
bid at reasonable prices.
c.
Work is required to be carried out without disrupting

ongoing operations.
d.
Risks of unavoidable work interruption are better

borne by the borrower than by a Contractor.
35
21.10.
e.
There are emergencies needing prompt attention.
f.
A government-owned construction unit that is not

managerially and financially autonomous shall be
considered a Force Account unit otherwise known
as direct labor, departmental forces, or direct work.
Fulfillment of Force Account Pre-requisites & Negotiation.

a.
Sub-Paras (b) & (e) above relate to prevailing

circumstances on the project.
b.
Though the projects are not small in size, works on

all eight packages have no geographical proximity.
Three are located in Upper Sindh, three in Southern
KPK and two in Northern KPK. Due to far flung
locations and huge variation in geological terrain
(plain, rolling and mountainous) and also law & order
situation in some areas, competition remained
lukewarm despite NHAs best efforts.
c.
In some other packages in same area eg NCB-N-12 &

13, Chakdara Kalam Bridges, Packs-I & II, the lowest
evaluated bid was +120% the estimated cost (CSR
2009+9.1%) and bidding process annulled.
d.
FWO remained the only bidder that expressed

interest in all the works. NHA scrutinized &
evaluated the matter in detail to establish FWOs
technical and financial capacity to deliver.
e.
Concern on too high a price was mitigated and

brought to an acceptable level through negotiation.
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
Variation vis--vis estimates based on CSR 2009+ 9.1%

Variation vis--vis estimates based on CSR 2011
Remaining 4 x Packages.
a.
Remaining four packages were taken-up afresh but

FWO on Mar 12, 2013 refused further discount.
b.
NHA re-deliberated the available discounted bid

prices considering that CSR-2011 rates are also 1
year old, uncertain security situation of project area,
non-availability of price adjustment clauses in
bidding documents, cumulative discount of subpackages and corresponding overall bid price of a full
package with respect to the Engineers estimate.
c.
NHA finally recommended following three projects as

well for ADBs consideration under Force Account:-
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)
Variation vis--vis estimates based on CSR 2009+ 9.1%

Variation vis--vis estimates based on CSR 2011
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.
21.15.
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.
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
Ramak - Peshawar, Pack-I
60
N-18
Ramak - Peshawar, Pack-II
100
N-19
Ramak-Peshawar, Pack-III
196
S-3
Ubauro - Sanjarpur
10
S-15
Dharki - Panu Aaqil
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
Ramak - Peshawar, Pack-I
Negotiated Bid
Price (Rs)
566,635,467
N-18
Ramak - Peshawar, Pack-II
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
Dharki - Panu Aaqil
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%
Variation vis--vis estimates based on CSR-2011
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

22.1.
Background/General Description.
a.
Roads are now the backbone of Pakistans transport

sector with ever increasing reliance on road
transportation. Pakistans road network plays an
important role in integrating the country, facilitating
economic growth and reducing poverty.
b.
Pakistan has a road network covering +260,000 km,

including around 12,000 km national highways
carrying over 96% of inland freight and 92% of
passenger traffic despite being only 4.5 % of
Pakistans total road network.
40
c.
22.2.
22.3.
NHA network also plays a major role in allweather

reliability, reduced transportation costs and
increased access to markets for local produce and
products, access to new employment centres,
employment of local workers on projects, better
access to health care and other social services,
strengthening of local economies, etc.
Maintenance of NHA Network.

a.
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.
NHA network includes about 5,500 bridges and

16,000 culverts. Bridges require frequent maintenance
and repair to keep them functional throughout the
service life, as their failure can cause excessive public
and private losses. Due to financial constraints and
old age of majority of bridges, decisions on
prioritization for repair & selection of appropriate
method is of paramount importance.
c.
While approving AMP 2009-10, the Executive Board

(174th special meeting of Jul 4, 2009) instructed that
creation of a separate fully equipped/trained Bridge
Inspection/ Maintenance Unit be considered to look
after the most valuable asset of NHA.
Bridge Management System (BMS).

a.
BMS was developed in 2006 but based on visual

inspection depending largely on experience and
engineering judgment of the bridge inspector and
this is prune to inaccurate damage assessment.
Training for engineers, updation of bridge inspection
guidelines and use of Non Destructive Testing (NDT)
is required for improved BMS.
41
b.
22.4.
22.5.
To overcome these deficiencies, NHA proposed

technical assistance from Japan for providing onthe-job training (OJT). For evaluation and damage
assessment of bridges, JICA was requested to also
provide NDT equipment.
Record of Discussion & Minutes of Meeting with JICA.

a.
NHA/GoP requested Govt of Japan to implement the

project for NHA to utilize BMS more effectively.
b.
JICA dispatched first detailed planning survey

team headed by Dr Nobuyuki Tsuneoka, Senior
Advisor for Traffic & Transportation (May 14 to 18,
2012) and second team headed by Ms Aya Shimada,
Dy Assistant Director of Economic Infrastructure
Department from JICA HQ, Tokyo (Jul 3 to 18, 2012).
c.
Based on understanding reached between JICA

teams, NHA and authorities concerned, minutes of
meetings were signed on May 18 and Jul 18, 2012.
Proposed Project Iimplementation Activities.

a.
Establish BMS at Head and Regional Offices.
b.
Provision of inspection equipment such as Under

Bridge Inspection Unit and NDT Equipment with
operational training through JICA grant.
c.
Updation of Road / Bridge Inspection Guidelines

along with detailed specifications and procedures of
appropriate repair methods.
d.
Devise
policies/plans
for
sustainability
and
robustness by continuous bridge inspections and
updation of BMS data by Regional Offices.
e.
Subsequent OJT for inspection of bridges to NHA

engineers at Head/Regional Offices and Maintenance
Units level.
42
22.6.
f.
Arranging training in Japan & Pakistan for capacity

building of NHA engineers working for development
of BMS.
g.
Provide BMS data to help NHA prepare effective AMP

for bridges/structures.
Cost Summary.
a.
JICA Grant. US$ 2.5 million = Rs 244 million @ 1

US$ = Rs 97.6 (for expenditures of JICA experts, equipment
procurement & training).
b.
NHA Share. Rs 32 million from Road Maintenance

Account (for administrative, surveying, vehicle, transportation,
outsourcing of activities not included in JICA grant).
Note. NHAs share for each year shall be borne through RMA
after obtaining approval of AMPs from Executive Board.
22.7.
Financing Plan.
F/Year
a.
b.
c.
d.
2013-14
2014-15
2015-16
Total
(1)
1st & 2nd Quarters
(1)
Local
(Rs in M)
12
15
5
32
22.8.
PSDP 2012-13 Allocation. Nil.
22.9.
Executive Boards Earlier Decision.

a.
FEC
US$ in M
1.0446
0.9696
0.4858
2.5
Executive Board directed (174th special meeting of Jul 4,

2009) creation of a separate fully equipped / trained
Bridge Inspection / Maintenance Unit to look after
bridges while also expediting procurement of Under
Bridge Inspection Equipment / Machinery.
43
b.
22.10.
Executive Board recommended (184th meeting of Jan 4,

2010) concept clearance and later (204th meeting of May
14, 2011) PC-II for approval by CDWP.
Recommendations of TWP-I (12th meeting of Mar 13, 2013).

a.
TWP-I considered the PC-I for project titled

Technical Assistance for Implementation of Bridge
Management System in NHA costing Rs 276 million
(including JICA grant of FEC US$ 2.5 million) and
recommended it for approval by CDWP subject to
incorporation of various suggestions proposed.
b.
TWP-I recommended creation of Bridge Management

Unit with following manpower for approval by
Executive Board:-
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
Proposal. The Executive Board is requested to:a.
Recommend 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.
b.
Approve creation of Bridge Management Unit with

requirement as stated in Sub-Para-22.10(b) above.
22.12.
(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
Member (Operation) & Member (Planning)

Farewell for Outgoing Board Members
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.
The resolution was appreciated & unanimously adopted.
Action By
24.
Conclusion
Secretary NHA & Member (Admn)
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

227 Executive Borad Meeting of NHA

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NHA Executive Boards Confirmed Minutes

NATIONAL HIGHWAY AUTHORITY

227th Meeting of the NHA Executive Board Held on Apr

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

Opening Remarks - Chairman NHA

227th Meeting, April 29, 2013, Islamabad

NHA Executive Boards Confirmed Minutes

Quetta - Sukkur (N-65)

Inauguration of Rasheedabad Chowk Flyover of Inner

Groundbreaking of Syedwala Bridge across River

Inauguration of Mir Wah Sanjar Chang Road to

Groundbreaking of Karachi - Hyderabad Motorway

227th Meeting, April 29, 2013, Islamabad

NHA Executive Boards Confirmed Minutes

NCB contracts already awarded

National Competitive Bidding

Operational Issues Concerning NHA Network

Theft of fence on Motorways (M-1 & M-2) is continuing

In terms of an understanding reached with Goods

NHA Executive Boards Confirmed Minutes

The Chairman NHA responded with following remarks:a.

NHA is contemplating various measures for putting a

The IG (NH&MP)s request for provision of manpower

NHA floated a proposal for Overlay & Modernization

Through check on overloading, NHAs main interest

227th Meeting, April 29, 2013, Islamabad

NHA Executive Boards Confirmed Minutes

FORMAL BOARD PROCEEDINGS

227th Meeting, April 29, 2013, Islamabad

NHA Executive Boards Confirmed Minutes

The minutes were accepted for confirmation.

In Agenda Item 2 Award of Works under FERP:

The VP-NESPAK stated that to avoid

The VP-NESPAK stated that to avoid

227th Meeting, April 29, 2013, Islamabad

NHA Executive Boards Confirmed Minutes

In Agenda Item 4 Award of Works Under FERP:

In Additional Agenda Item-I Award of Works Under

NHA Executive Boards Confirmed Minutes

The minutes were accepted for confirmation.

227th Meeting, April 29, 2013, Islamabad

NHA Executive Boards Confirmed Minutes

227th Meeting, April 29, 2013, Islamabad

NHA Executive Boards Confirmed Minutes

Member (Aided Projects)

Introduction - Working Paper

Audited Financial Statements.

After auditing the RMA Financial Statements for the

Out of four qualifications appearing in last year's

NHA Executive Boards Confirmed Minutes

Proper books of accounts have been kept by RMA;

Balance sheet and income and expenditure account

Expenditure incurred during the year was for the

Operations conducted & expenditure incurred during

b. Additions in capital work-in-progress

Matter was discussed and cleared.

a. Additions to property, plant & equipment-at cost 25.012

NHA Executive Boards Confirmed Minutes

Introduction - Working Paper

Audited Financial Statement.

After auditing the Entity Financial Statements for

Out of three qualifications appearing in last year's

Proper books of accounts have been kept as required

Balance sheet and income and expenditure account