Punjab to award all development projects to NLC

[Naveed Yaseen]

* All development contracts to be awarded to either NLC or FWO under new policies
* Finance Department official says NLC to ensure quality work

By Anwer Hussain Sumra

LAHORE: The Punjab government relaxed various rules and codes to award development project contracts of the province to the National Logistic Cell (NLC), an official of the Finance Department said on Wednesday.

This follows a decision by the Punjab government to grant all contracts — at a 20 percent mark-up over the rates approved by the Finance Department — related to the construction of roads and the installation of tube-wells to the Frontier Works Organisation (FWO), the official added.d.

New policies: Under the new policies, he said, all contracts for development projects in the province would be awarded either to the NLC or the FWO. Private, registered contractors would not be catered to, he added.

In June 2000, the Punjab government adopted a notification regarding how contracts issued by the Federal Planning and Development Division would be awarded for various development projects in the province. According to the notification, the NLC, being an attached organisation of the Planning and Development Division, falls within the purview of federal departments. It has, therefore, been decided that for all government works/contracts, the NLC would not be required to furnish the conditions required by other contractors: Performance bond in relaxation of Rule 276-GFR, bank guarantee for advances if any provided under the contract agreement and the release/adjustment of retention money.

Quality: After the notification was adopted, all contracts of large projects were awarded to the NLC with a view that the cell would ensure quality work, durability and would execute all the projects at the stipulated time to avoid extra expenditure. However, in October 2007, the Punjab government withdrew this notification. This move resulted in several opportunities for private, registered constructors to attain contracts for various development projects, and allowed the government to avoid criticism from stakeholders.

However, the Finance Department, on September 15, re-adopted the old notification after approval from Chief Minister Shahbaz Sharif. In the re-adopted notification, the Finance Department stated that to pursue the orders of the competent authority, the 2007 notification has been withdrawn and the old one regarding the exemption of the NLC had been re-instated with immediate effect. This included the respecting of the contract for government works in relaxation of Rule 7.36(b)I of Departmental Financial Rules (relating to Public Works and Forest Departments), clause H&D (memorandum of work), clause 7&48 (general condition of the contract in the standard contract form) and Para 2.66 of the Buildings and Roads Code.

The notification also stated that the abovementioned office memorandum would be applicable on all government departments — autonomous and semi-autonomous bodies under administrative control — that would require the services of the NLC.

The Finance Department has also informed the Planning and Development Board chairman, the CMIT chairman, all administrative secretaries, heads of autonomous and semi-autonomous bodies, chief engineers, district nazims, district co-ordination officers, the Housing and Physical Planning director general, the Forests chief conservator, the chief architect and the Punjab accountant general to implement the new decision regarding award of contracts in letter and spirit, the official added.

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