Rules followed while awarding contracts: NHA

[LRE-Azan]

ISLAMABAD: The National Highway Authority (NHA) has maintained that all the applicable rules are followed in bidding with due regard to Public Procurement Rules, 2004 while awarding a contract.

A statement issued by the organization said audit on NHA projects and framing of audit paras is a routine exercise. The department furnishes replies to all such observations which are then discussed at relevant forums including the Departmental Accounts Committee (DAC) and Public Accounts Committee (PAC).

The feasibility study for the entire Karachi-Multan-Lahore Motorway was carried out by M/s China State Construction Engineering Corporation (CSCEC). However, the PC-I was based on the estimation done as a result of ground revalidation by a local consultant. Subsequently, bidding was carried out within Chinese nominated contractors in accordance with the Framework Agreement signed between the Government of China and Government of Pakistan. All the applicable rules were followed in bidding with due regard to Public Procurement Rules (2004). The bidding for this project was carried out under Engineer, Procure, Construct (EPC) mode. This is different from traditional item rate contracts as in EPC mode the contractor is responsible for design as well as constructing the project. Moreover, the price is locked and time is fixed. Hence, in EPC, it is the contractor who assumes the risk of market fluctuation and quantity variations. NHA also takes the credit of rationalising the final bid that took hectic discussions in several clarification meetings. This resulted into saving of around Rs 111 billion and that too without compromising the functionality of the motorway. Subsequently, the revised PC-I of the project at Rs 294.352 billion was duly approved by the ECNEC.

Published in Daily Times, October 28th 2017.