230-Executive Board Meeting of NHA

8/9/2019 230-Executive Board Meeting of NHA

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NHA Executive Board’s Confirmed Minutes

NATIONAL HIGHWAY AUTHORITYSecretariat Section

CONFIRMED MINUTES

Subject: 230th Meeting of the NHA Executive Board held on Sep

17, 2013 at Islamabad

1.

Introduction

1.1. The 230th meeting of the Executive Board of the National

Highway Authority was held at 1000 hours on Sept 17, 2013 at the

NHA Head Office Auditorium, Islamabad. Mr Maroof Afzal, 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.


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2.3. The Chairman stated that NHA is a wonderful

organization and has capacity to achieve given targets. He further

stated that, my predecessors have worked hard and put efforts to

improve efficiency and working system of NHA. However, there is a

need to take more effective and efficient steps for furtherimprovements. He assured that with the support of this honourable

forum and in house working team, comfortable atmosphere will be

provided for better output.

2.4. The Chairman informed the Board about his visits to KKH

upto Besham and Muzaffarabad - Kohala Bridge Project. He also

apprised the Board in respect of presentations made to the Prime

Minister and Senate Standing Committees meetings.

2.5. The Chairman updated the Board that NHA has received

Rs 5.9 billion against the demand of Rs 6.4 billion for 1st quarter of

PSDP allocation for FY 2013-14.


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A-I. PC-I for widening and strengthening of Rakhi - Gaaj

- Bewata Section (N-70) 33.84 km.

A-II. Chinese Aided Post Flood Rehabilitation Projects:

Security arrangement for Chinese working on KKH.

4. Agenda Item 1

Confirmation of Minutes - 229th Meeting of the

Executive Board Held on Jul 9, 2013

4.1. The Secretary NHA solicited confirmation of minutes of

the 229th Executive Board meeting held on Jul 9, 2013. No written

comments / observations have been received from any Member.

4.2. Minutes were accepted for confirmation.

Decision


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ii. Para 18.7 under the head “Decision” may be

amended as follows:-

“The Executive Board considered details,

justifications given in the working paper and

presentation and approved, in principle, the

following:-

a. Conversion of last 10 km of Khanewal –

Multan Motorway (M-4 Extension, 57 km)

to 6-lane configuration.

b. NHA will submit revised PC-I for approval

of competent authority within three

months.

c. The expenditures over and above the

approved cost will be incurred subject to

l f i d PC I ”


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ParaNo Minutes of 228th Meeting Amendment Suggested

21.2 Funding km

a. ADB Loan 661

b. Chinese grant 473

c. Rehabilitated by NHA

46

Total 1180

Funding km

a. ADB Loan 653

b. Chinese grant 345

c. Rehabilitated by NHA

46

Total 1044

21.4 Project Cost.

Annex-J Annex-J-I

21.6 Contracts Awarded. Annex-L Annex-L-I

21.7 Implementation Period. 30months

30 months (3 months mobilization and3 months demobilization period otherthan construction time)

21.9 Project Financial Phasing (Local).

F/Year Rs in M Share

2011-12 1,505 08%

2012-13 1,882 10%

2013-14 5,645 30%

2014-15 5,645 30%

2015 16 3 763 20%


2013-14 5,765.10 30%

2014-15 6,725.95 35%

2015-16 6,149.44 32%

2016-17 576.51 03%


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ParaNo Minutes of 228th Meeting Amendment Suggested

b. Project will be financed by ADB up to 90% and GoP10%.

c. Nine packages have so farbeen awarded (

Annex-O).

d. Project financial phasing(local):-


2011-12 3,471 9.28 %

2012-13 8,415 22.50 %

2013-14 18,043 48.24 %

2014-15 7,478 19.99 %Total 37,407 100 %

b. Project will be financed by ADB up to90% and GoP 10%.

c. Nineteen packages have so far beenawarded (Annex-O-I).

d. Project financial phasing (local):-

F/Year

LocalComponent

(Rs in M)

ForeignComponent

(Rs in M)

Total(Rs inM)

%age of ProjectCost

2011-12 347 3,124 3,471 6.96%

2012-13 650 5,800 6,450 12.94 %

2013-14 1,397 12,582 13,979 28.04 %

2014-15 3,215 10,764 13,979 28.04 %

2016-15 2,756 9,226 11,982 24.03%

Total 8,365 41,496 49,861 100 %

22.5 Proposal. Amended PC-I costof Rs 37,407 million

Amended PC-I cost of Rs 49,861million

22.9 Decision. Amended PC-I costof Rs 37,407 million

Amended PC-I cost of Rs 49,861million


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Decision

5.6. The Executive Board recommended both PC-Is (ADB

Component & Chinese Grant) with updated cost as suggested in

proposal for approval of competent authority.

5.7. These amendments in the minutes of the 228th Board

meeting will be circulated as corrigendum to the minutes.

Action By : Member (Planning)

6.

Agenda Item 3

PC-II for Feasibility Study and Preliminary Design for

Karachi – Lahore Motorway (M-7, M-6, M-5 and M-4)

Proposal


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7. Agenda Item 4PC-II for Feasibility Study and Preliminary Design for

Pak China Economic Corridor (Khunjerab to Gwadar)

Proposal

7.1. The NHA Executive Board is requested to recommend the

“PC-II for Feasibility Study and Preliminary Design for the Pakistan – China Economic Corridor (Khunjerab to Gwadar) at a tentative

consultancy cost of Rs 830.820 million” for approval from CDWP

having the following breakup:-

DescriptionLength

(km)

Cost

(Rs in M)Zone-1 Khunjerab-Mansehra (2-lane)

730 192.440Mansehra-Haripur-Islamabad

(4-lane & 6-lane)

Islamabad-Pindi Gheb (6-lane)

Zone-2 Pindi Gheb to PCEC M-8

J ti (6 l )

870 173.790


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DescriptionLength

(km)

Cost

Rs in M

Package-I Muzaffarabad- Azad Pattan 96 54.040

Package-II Azad Pattan-Mirpur (N-5) 100 50.280

Security Cost* 22.860

Total Cost (Rs) 196 127.180

* Security Cost would be paid as per actual

Deliberation

8.2. The General Manager (Planning) briefed the Board in

detail. Observations / suggestions of the Members as addressed

during the deliberation are recorded in succeeding Paras.

8.4. The Additional Secretary Finance sought clarification with

t t th t l i l f th j t d i i d


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8.7. The VP-NESPAK raised the question of capability of local

engineering firms to undertake such mega project feasibilities.

8.8. The Member (Planning) explained that the present

formation of local consulting industry in Pakistan is rather restricted.

The time frame of a mega project feasibility should be at minimum 6-8

months. He further clarified that the domestic consulting firms, which

have attained worthwhile profile today were basically single entity

ownership companies of the past thirty years. Over the years the

owners have grown old and have passed the management to younger

generation. Corporate culture, which provides lifeline and progressive

development to the company, did not flourish and that is one of the

prime reasons for these companies to reach the current stage.

Nevertheless, for one particular mega project ie Pak-China Economic

Corridor (PCEC), NHA is of the opinion that a two tier system be

evolved where the contract for feasibility be given to one company

which may be asked to associate three companies, one for each zone

d th t j t t t i i f ti l d


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8.11. The Chairman informed that M/s China StateConstruction Engineering Corporation Limited (CSCEC) has offered

their service to conduct feasibility study of the Karachi-Lahore

Motorway at no cost to the Government of Pakistan. Their offer has

been accepted and Ministry of Communications has issued Letter of

Commencement in this regard. Chinese technical teams are ready to

come to Pakistan and their visa request is being processed. The total

duration of the Study is three (3) months. The PC-II is accordingly

being processed and a minor amendment is proposed that the

proposed funds as shown required for the feasibility study are not

being demanded at this stage; but only the amounts shown for the

security of the Chinese shall be requested.

8.12. For feasibility study for other project i.e. Muzaffarabad -

Mirpur - Mangla - N-5, PC-II shall be processed as per standard

procedure.

8.13. The Chairman informed that provision of Security to

Chinese will be the responsibility of Government of Pakistan, which is

d th h P li N i i f f d h b


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8.18. The Chairman opined that since PC-II consists of two

aspects i.e. one is the feasibility study which will be carried out free of

cost wherever possible & second is the provision of security. Therefore,

there is no need for preparation of separate PC-l for security purpose.

However, both the aspects are clarified separately in PC-II.

8.19. The VP-NESPAK expressed that completion of feasibility

study for PAK - China Economic Corridor package of more than 2000

km in hard area within proposed period of three months will not be

possible. Therefore, period of completion needs to be decided keeping

in view the real situation of area.

8.20. The Board Members deliberated upon the issue and

finally agreed upon that the minimum time for completion of the

feasibility of Projects should be set as six months, excluding the

Karachi - Lahore Motorway, as time frame for the feasibility study is

already agreed upon as 3 months.

8 21 Th Chi f (NTRC) k d b t th d f t t i


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Decision

8.26. After detailed discussion / deliberations the Board

recommended all the three PC-IIs with the following directions:-

a. Completion Period of Feasibility Study in Pak-China

Economic Corridor and Muzaffarabad - Mirpur -

Mangla - (N-5) Expressway will be six months

including use of International Consultants man-

months for critical positions. Feasibility study for

Karachi - Lahore Motorway shall proceed as is with

Chinese & PC-II is cleared as it is.

b. The engagement of consultants other than free of

cost service provision will be through PPRA.

c. The PC-IIs should be re-casted to incorporate the

comments of the Executive Board and submitted to

CDWP.


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9.3. The Chief (T&C) desired to know whether amount of VO-6is within the approved cost of revised PC-I (Rs 18.132 billion) or over

and above the said amount.

9.4. The General Manager informed that the cost of VO-6 is

within the approved revised PC-I excluding Rs 505 million (against

optimization of tunnel profile ) and respective escalation which is over

and above revised PC-I.

9.5. The Chief (T&C) then opined that the said amount is

required to be got approved in 2nd revision of PC-I. The General

Manager (LTP) stated that, the 2nd revision amounting to Rs 28 billion

(approx) is underway for submission to competent authorities.

9.3. The Chief (T&C) observed that oftenly Board is not

provided full and factual figures for consideration to decide the cases

on merit. This not only results in wastage of time but also affects

qualitative decision making. The Additional Secretary Finance and the

VP-NESPAK supported version of the Chief (T&C).


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10.7. The Chief (T&C) desired that the calculations made in

addendum in Euro and Pak Rupees need to be shown in overall effect

in Pak Rupees as total financial limit in the addendum in Pak Rupees

is not mentioned. Thus, it is not clear as to how much amount is

required to be approved in the said addendum. The Additional

Secretary Finance and the Senior Joint Secretary MoC supported the

version of Chief (T&C).

10.8. The Board directed GM (LTP) to mention the total effect in

Pak Rupees.

10.9. The Board deliberated and cleared the proposal.

Decision

10.10. The Executive Board approved the proposal for

consultancy services up to October, 2017.

10 11 Th G l M (LTP) fi d th t t t l fi i l


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12. Agenda Item 9Construction of Gwadar - Ratodero Road Project,

Khuzdar-Shahdadkot Section-IV, Pack-III (Km 35+000

to 84+500): Variation Order-3, Approval for

Amendment to the Contract Re-rating & Extension of

Time

12.1. The subject agenda item was withdrawn by the

Construction Wing.

Action By : Member (Construction)

13. Agenda Item 10

Addendum-2 of M/s Techno Consult for Construction

Supervision of Road from Hyderabad Badin to Mirwah

Sanjar Chang Road

Agenda Item 11

Revised Addendum-1 of M/s ABM Engineers for

C t ti S i i f K l B P j t


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15. Agenda Item 13Appointment of Auditors for Audit of NHA Accounts –

2013

Proposal

15.1. The NHA Executive Board is requested to approve theappointment of M/s Haider Bhimji & Co (Kreston International) as

Auditors for the year ended Jun 30, 2013 at an audit fee of

Rs 3, 910,000/- and with no out-of-pocket expenses for all the audits

mentioned below:-

Audit Audit Fee (Rs) Out of Pocket

Expenses Rs

NHA Entity Accounts 1,903,000 Nil

RMS Accounts 1,087,000 Nil

ADB Funded Project 520,000 Nil

NHIP Accounts 400,000 Nil

Total 3,910,000 Nil


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technical proposal but due to non submission of financial proposalthey were declared non-responsive, while other three out of the Big

Four did not participate and communicate their non availability due to

their pre-occupation with current commitments. The Member

(Finance) also explained regarding the question about quoting of

similar audit fee which is due to the Auditing Technical Release (ATR)

14 by the Institute of Chartered Accountants of Pakistan (ICAP).

According to this ATR the minimum audit fee shall not be less than

the present audit of an existing client. Copy of the ATR is at Annex-B.

15.5. On query of the Chief (NTRC) about the time limit for

completion of the audit, the Member (Finance) replied that Dec 31st is

the target date in this respect.


Decision

15.7. The proposal was approved with the recommendations

h j di fi h ld l b d d f k i f If


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16.2. This Sukuk transaction would not involve any financial,

legal or administrative implications for NHA.

Deliberation

16.3. The Member (Finance) briefed the Board.

16.4. The Executive Board cleared the proposal after detailed

discussion / deliberation.

Decision

16.5. The Executive Board approved the proposals.

Action By : Member (Finance)

17. Agenda Item 15

Payment of Arrears of Pay & Allowances wef Sep 12,

2005 D U d i f P f A di d


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Deliberation

18.2. The Member (Admin) presented the case. Besides the

grounds mentioned in the working paper, major reasons for

withdrawal of earlier decision were narrated as under:-

a. Misstatement of the officer regarding devolution of

his parent department (PTDC), whereas, the

department yet exists.

b. The officer has not completed minimum period of 3

years required for induction of deputationist officer.

His date of posting in NHA is Feb 10, 2011.

c. The post of Director (Admin), BS-19 is not available

against direct quota of Punjab.

18.3. The Chief (T&C) stated that, case for induction of officer

was brought before the Board thrice. The reasons mentioned for

i f li d i i d li h


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Decision

18.4. After detailed discussion/deliberation the proposal was

cleared and earlier approval of the Board granted for induction of Syed

Imran Qadir Gilani was withdrawn with the directions to repatriate

him to PTDC.

Action By : Member (Admin)

19. Agenda Item 17

Creation of 3x Supernumerary (Temporary) Posts of

GMs (Engr, BS-20)

Proposal

19.1. Approval for creation of three temporary posts of GMs

( ) f i i i d i b l ill il bili f


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19.4. The Board deliberated and recommended the proposal toNHC (if it was in the competency of NHC).

Decision

19.5. The Executive Board considered the proposal for creation

of three supernumerary posts of GMs (Engr, BS-20) and recommended

for approval of the National Highway Council.

Action By : Member (Admin)

20. Agenda Item 18

Re-designation the Post of Stenographer (BS-16) as

Assistant Private Secretary (BS-16)

Proposal

20.1. Since Executive Board has already directed removal of

anomalies in this case through appropriate corrective measures,

f ll d f l


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Deliberation

20.2. The Member (Admn) briefed the Board.

20.3. The Chief (T&C) opined that it should be checked that noother category of employees should be aggrieved.

20.4. The Member (Admn) informed that as a result of approval

of this case no one be aggrieved in this category.

Post Qualification Experience Age

6. AssistantPrivateSecretary

(BS-16)

BA Full commandshorthand & Typingand 5 years experience

on ministerial posts.

30


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Deliberation

21.2. The Member (Admn) briefed the Board and informed that

a reference has been sent to the Ministry of Communications for

clarification in respect of condonation of six years period and the

Board members were requested to treat this item as withdrawn.

However, the Chief (T&C) was of the view that the item may not be

withdrawn, but should be discussed later on along with other similar

types of cases for decision.

21.3. However, after deliberation, the case was withdrawn with

directions that a consolidated Working Paper may be prepared by

including other similar cases (if any) for consideration of next Board

meeting.

Decision

21.4. The Executive Board decided that the agenda item to be


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b. Updated cost of project: Rs 20,756 M (GoP share: Rs

5,333 M, JBIC Loan: Rs 15,423 M) having the

following breakup:-

i. Package-1: updated cost Rs 18,826 million

(including FEC Rs 5,528 million, LEC Rs 13,298 million)

ii. Package-2: updated cost Rs 1,930 million.

(Financing by GoP).

Deliberation

22.2. The General Manager (Planning) briefed the Board.

22.3. The VP NESPAK observed that cost of Rs 1 billion per km

seems very high.


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23. Additional Agenda Item II

Chinese Aided Post Flood Rehabilitation Projects:

Security Arrangement for Chinese Working on KKH

Proposal

23.1. An MoU was signed between Government of Pakistan andPeoples Republic of China under which Chinese side is providing a

grant of USD 190 million for Post Flood Rehabilitation Project. NHA

has made agreement with M/s China Yunnan Sunny Road & Bridges

Co Ltd and M/s China Railway 17th Bureau Group Co Ltd for FERP

Projects. The above companies are to be mobilized for works. The

Economic and Commercial Councilor of China Embassy has showngrave concern regarding security to the Chinese Engineers on KKH. As

per MoU, NHA is bound to ensure safety of persons and properties of

the Chinese during work in Pakistan. An amount of Rs 800 million

has been included as security component (GoP Share) in the PC-I.

Necessary arrangements have been made with Khyber Pakhtunkhwa


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Contract Agreement with KPK Police

Commencement Date 1st August, 2013

Contract Period 03 years

Cost Breakup (KPK Police- Rs 184.651 M per annum)

C. One Time Expenditure Amount (Rs in M)

Arms & Ammunition 11.166

Security Equipment 33.532

Vehicles 40.500

Infrastructure 2.23

Total (C) 87.428

D. Recurring Expenditure

Manpower (248 x regular police staff) 96.023

Running Expenses (Provisional Sum) 1.200

Total (D) 97.223

Total (C+D) **184.651** Contract Agreement has been signed between NHA & KPK Police amounting to Rs 184.651 M per annum

Deliberation

23.2. The Director (FERP) made presentation to the Board in


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23.7. The VP-NESPAK inquired about the purchase of arms and

ammunition for the purpose. The Chairman informed that arms and

ammunition will be supplied by Pakistan Ordinance Factory (POF) and

payment will be made through Cheque/ Draft directly to POF.

Decision

23.8. After detailed discussion / deliberation the Board

approved proposal as mentioned above.

Action By : Member (Operation)

24. Conclusion

24.1. The Chairman wrapped up the meeting by thanking the

Board Members for their active participation and useful input.


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EXTRACTS

CONFIRMED MINUTES OF THE230TH EXECUTIVE BOARD MEETING

SEPTEMBER 17, 2013 AT ISLAMABAD


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NATIONAL HIGHWAY AUTHORITY

CONFIRMED MINUTES

230th Executive Board MeetingIslamabad, September 17, 2013

INDEX

PARA AGENDA ITEM PAGE ACTION BY

1. Introduction 1 ---

2. Opening Remarks (Chairman NHA) 1 ---

3. Formal Proceedings (Agenda Items) 2 ---

4. Agenda Item 1Confirmation of Minutes - 229th Meeting of the 3 Secy NHA


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11. Agenda Item 8Addendum-2 of M/s Associated Consultancy Center(ACC) for Construction Supervision: Rehabilitation of Kamber – Shahdadkot Road Project

16 Mem (C)

12. Agenda Item 9Construction of Gwadar - Ratodero Road Project,Khuzdar-Shahdadkot Section-IV, Pack-III (km 35+000

to 84+500): Variation Order-3, Approval for Amendmentto the Contract Re-rating & Extension of Time

17 Mem (C)

13. Agenda Item 10Addendum-2 of M/s Techno Consult for ConstructionSupervision of Road from Hyderabad Badin to MirwahSanjar Chang Road

17 Mem (C) Agenda Item 11

Revised Addendum-1 of M/s ABM Engineers forConstruction Supervision of Kolpur Bypass Project(N-65)

14. Agenda Item 12Regularization of Contracts Awarded to M/s FWO onSingle Source Basis for Emergency Works on FloodAffected Areas of KKH, Thakot-Khunjerab Section andSkardu Road (S-I)

17 Mem (O)


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20 Agenda Item 18Re-designation the Post of Stenographer (BS-16) asAssistant Private Secretary (BS-16)

23 Mem (A)

21. Agenda Item 19Request for Job in NHA against “Deceased Quota”: Mr

Muhammad Nawaz S/o Ali Nawaz, Ex-Driver of NHA24 Mem (A)

22. Additional Agenda Item IPC-I for Widening and Strengthening of Rakhi - Gaaj -Bewata Section (N-70) 33.84 km

25 Mem (P)

23. Additional Agenda Item IIChinese Aided Post Flood Rehabilitation Projects:Security Arrangement for Chinese Working on KKH

27 Mem (O)

24. Conclusion 29 ---

------------------


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Annex-A

NATIONAL HIGHWAY AUTHORITY

LIST OF PARTICIPANTS

230TH EXECUTIVE BOARD MEETINGSEPTEMBER 9, 2013 AT ISLAMABAD

IN CHAIR

1. Mr Maroof Afzal Chairman

MEMBERS

2. Dr Shujat Ali AS (Budget)Finance Division

3. Mr Zulfiqar Ahmad Cheema Inspector General, NationalHighways & Motorway Police


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-2-

NHA OFFICERS ITEM

11. Mr Zia-ul-Haq Member (Admn) 16, 17, 18 & 20

12. Mr M Asim Amin GM (Design) 3, 4, 5 & AI

13. Mr Pervez Iqbal Sulehri GM (Planning) 3, 4, 5 & AI

14. Col Salman Rashid GM (Operation) 6, 7 & 12

15. Mr Pervaiz Gul GM (Con-South) 8, 9, 10 & 11

16. Mr Ikram-us-Saqlain Haider Dir (RAMS/FERP) 2 & AII


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230th Meeting, September 17, 2013, Islamabad


Documents

230-Executive Board Meeting of NHA