230-Executive Board Meeting of NHA

NHA Executive Boards Confirmed Minutes
NATIONAL HIGHWAY AUTHORITY

Secretariat 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.
2.
Opening Remarks - Chairman NHA
2.1.
The Chairman extended warm welcome to the participants
of meeting, particularly to Mr Aamir Hasan Senior JS, MoC and Dr
Shujat Ali, Additional Secretary Finance Division as new Board
Members. After introduction of Chairman and Members, the
Chairman expressed that he will need wisdom, support and guidance
of the Honourable Board Members for discharge of his duties and to
create better perception of National Highway Authority.
2.2
The Chairman stated that the last meeting was held on
Jul 9, 2013 and due to passage of over two months, agenda is
relatively bulky / voluminous. The Chairman suggested that Board
meetings be held on monthly basis for timely disposal of proposals.
The Board members appreciated and agreed with the suggestion.
However, the Senior Joint Secretary MoC opined that the agenda
should not be more than 15 items for qualitative decision making. The
IG (NH&MP) & Chief (T&C) supported the version of limit of the
agenda items.
230th Meeting, September 17, 2013, Islamabad
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 further
improvements. 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.
FORMAL BOARD PROCEEDINGS
3.
Agenda Items
3.1.
The Secretary NHA stated that 19 x working papers were
circulated in two volumes viz Vol-I on Aug 30 and Vol-II on Sep 10,
2013. Subject-wise distribution is as follows:-
a.
b.
c.
d.
e.
f.
Item
Confirmation of minutes
Planning matters
Finance matters
Construction matters
Operation matter
Admin matters
Total
No
1
4
3
6
1
4
19
3.2.
The Secretary added that working papers on following
subject will be tabled as additional agenda items, if permitted:-
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
4.3.
The Executive Board confirmed minutes of 229th meeting
held on Jul 9, 2013 with following amendments:a.
In Agenda Items 8, 10 & 14 add the following

sentence at the start of Paras 11.5, 13.5 & 17.5
respectively:The General Manager (B&A) NHA will be co-opted
with the Committee for secretariat support and
assistance.
b.
In Agenda Item 15 Construction of Khanewal Multan Motorway (M-4 Extension, 57 km): Design of
Bridges, Flyovers & Sub-Structures as 6-Lane
make the following changes:i.
PMs directions regarding the subject matter

be annexed.
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:-
Action By
5.
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
approval of revised PC-I.
Secretary NHA
Agenda Item 2
Amendment in Minutes of the 228th Executive Board
Meeting of Jun 11, 2013: Additional Agenda Items IV
&V
Proposal
5.1.
The Executive Board is requested to approve amendments
in the Minutes of 228th meeting held on Jun 11, 2013 in Additional
Agenda Items No IV & V as under:Additional Agenda Item IV
PC-I for Rehabilitation of NHA Highway Network damaged by
unprecedented Monsoon Rains and Flash Floods-2010 Chinese Grant
Para
No
21.2
Minutes of 228th Meeting

a.
b.
c.
Amendment Suggested
Funding
ADB Loan
km
661
a.
Chinese grant
Rehabilitated by
NHA
Total
473
46
b.
c.
1180
21.4
Project Cost. Annex-J
21.6
Contracts Awarded. Annex-L
21.7
Implementation
months
21.9
Project Financial Phasing (Local).
Funding
ADB Loan
km
653
Chinese grant
Rehabilitated
NHA
Total
345
46
by
1044
Annex-J-I
Period.
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%
2016-17
376
02%
Total
18,817
100 %
Annex-L-I
30
30 months (3 months mobilization and

3 months demobilization period other
than construction time)
F/Year
Rs in M
Share
2013-14
5,765.10
30%
2014-15
6,725.95
35%
2015-16
6,149.44
32%
2016-17
576.51
03%
Total
19,217
100 %
21.10
Proposal. PC-I cost of Rs 18,817

million
PC-I cost of Rs 19,217 million
21.14
Decision. PC-I cost of Rs 18,817

million
PC-I cost of Rs 19,217 million
Additional Agenda Item V

Amended PC-I for rehabilitation of NHA Network Damaged by
Unprecedented Monsoon Rains and Flash Floods-2010 Loan No 2742PAK, ADB Component
Para
No
22.2
22.4
Amendment Suggested
Same as 21.2 above
Same as 21.2 above
Project Cost & Financial

Assistance/Phasing.
a.
Project cost summary is

at Annex-N.
a.
Project cost Summary is at

Annex-N-I.
Para
No
22.5
22.9
Amendment Suggested
b.
Project will be financed by

ADB up to 90% and GoP
10%.
b.
Project will be financed by ADB up to

90% and GoP 10%.
c.
Nine packages have so far

been awarded (Annex-O).
c.
Nineteen packages have so far been

awarded (Annex-O-I).
d.
Project financial phasing

(local):-
d.
Project financial phasing (local):-
F/Year
Rs in M
Share
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 %
Proposal. Amended PC-I cost

of Rs 37,407 million
Decision. Amended PC-I cost
of Rs 37,407 million
F/Year
Local
Compone
nt
(Rs in M)
Foreign
Compon
ent
(Rs in M)
Total
(Rs in
M)
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 %
%age of
Project
Cost
Amended PC-I cost of Rs 49,861million

Amended PC-I cost of Rs 49,861million
Deliberation
5.2.
The Director (FERP) presented the case.
5.3.
The Additional Secretary Finance pointed that increase of
PC-I cost from Rs 37,407/- million to Rs 49,861/- million is
substantial and may be supported with appropriate justification.
5.4.
The Chief (T&C) remarked that NHA should take care
when initial estimates are prepared for the projects to avoid
subsequent amendment with huge differences in the cost.
5.5.
The Director (FERP) explained that original cost estimates
were based on CSR-2009 +9.1% premium. Now, cost of construction
items has been substantially increased and rates of CSR-2009 are no
more considerable keeping in view inflation in the market rates. Now
the cost of PC-I has been updated on the basis of 19 awarded
contracts and engineers estimates for 27 packages by using CSR2011 +15% premium, hence the respective increase.
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)
Agenda Item 3
PC-II for Feasibility Study and Preliminary Design for
Karachi Lahore Motorway (M-7, M-6, M-5 and M-4)
6.
Proposal
6.1.
The NHA Executive Board is requested to recommend the
PC-II for Feasibility Study and Preliminary Design for Karachi
Lahore Motorway (M-7, M-6, M-5 & M-4) for submission to the CDWP
costing Rs 475.350 million with the following descriptions.
Cost
(Rs)
Package-I (Karachi Sukkur)
134,390,000
Package-II (Sukkur Multan)
137,620,000
Package-III (Multan Lahore)
119,340,000
Security Cost *
84,000,000 *
Total Cost (Rs)
1160
475,350,000
Cost/km (Rs)
409,784
* Security cost would be paid as per actual.
Description
a.
b.
c.
d.
e.
f.
Action By
Length
(km)
416
390
354
Member (Planning)
Agenda Item 4
Pak China Economic Corridor (Khunjerab to Gwadar)
7.
Proposal
7.1.
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:Description
Zone-1 Khunjerab-Mansehra (2-lane)
Mansehra-Haripur-Islamabad
(4-lane & 6-lane)
Islamabad-Pindi Gheb (6-lane)
Zone-2 Pindi Gheb to PCEC M-8
Junction (6-lane)
Zone-3 PCEC M-8 Junction to Gwadar
(6-lane)
Security Cost*
Length
(km)
730
192.440
870
173.790
800
184.590
Total Cost (Rs)

2400
* Security Cost would be paid as per actual
Action By
8.
Cost
(Rs in M)
280.000
830.820
Member (Planning)
Agenda Item 5
Muzaffarabad-Mirpur-Mangla- (N-5) Expressway
Proposal
8.1.
PC-II for Feasibility Study and Preliminary Design for MuzaffarabadMirpur-Mangla (N-5) Expressway at a tentative consultancy cost of Rs
127.180 million for approval from CDWP having the following
breakup:-
Description
Package-I
Length
(km)
Cost
Rs in M
96
54.040
100
50.280
Muzaffarabad- Azad Pattan
Package-II Azad Pattan-Mirpur (N-5)

Security Cost*
Total Cost (Rs)
22.860
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
respect to the conceptual appraisal of the mega projects and inquired
the modus operandi of the launching of the three projects, namely:a.
b.
c.
Pak-China Economic Corridor (Khunjerab - Gwadar)

Karachi - Lahore Motorway (M-7, M-6, M-5 and M-4)
Muzaffarabad - Mirpur - Mangla - (N-5) Expressway
8.5.
The Chairman NHA proposed that the three PC-IIs are of
similar kind, therefore, the deliberation can be lumped together to
reach a decision. Therefore the deliberations hereunder cover all the
three PC-IIs.
8.6.
The Chairman NHA informed the meeting that the
concepts were cleared by the Prime Minister of Pakistan during
various presentation made by the NHA, Ministry of Planning and
Development and Ministry of Communications. The Project Corridors
were prioritized by the Prime Minister himself and that all other
necessary arrangements such as financial packages & implementation
processes were also discussed during the respective meetings.
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
and the top project management team comprising of national and
international consultants be tasked to combine the results of three
feasibilities with the objective to assemble one comprehensive and
complete feasibility for the entire corridor.
8.9.
The Board agreed with the proposal and required NHA to
incorporate this revision and finalize the PC-II of PCEC to be
submitted to the CDWP.
8.10.
The VP-NESPAK enquired about the Karachi - Lahore
Motorway alignment connection with major cities like Okara and
Sahiwal. The GM (Planning) apprised that cities are already connected
with the Motorway at a distance of 40 and 30 km respectively,
through existing roads. The GM (Planning) further clarified that the
alignment is considered to open hinterland and facilitate backward
areas of left side of Indus belt.
10
8.11.
The Chairman informed that M/s China State
Construction 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
proposed through Police. Necessary provisions of funds have been
provided in the PC-II proposals.
8.14.
The Inspector General (NH&MP) suggested that security to
Chinese personnel may be arranged through Army or Frontier
Constabulary.
8.15.
The Chief (T&C) informed that during meetings with the
Prime Minister it was deliberated that Ministry of Interior be taken on
board for responsibility of security.
8.16.
The Chairman explained that since no special force for the
purpose of security of foreigners is available with the Ministry of
Interior, therefore, arrangements through Police or FC will be the
better option.
8.17.
The Chief (NTRC) suggested that keeping in view the
length and completion period of these mega projects, a separate PC-l
be prepared for the security services.
11
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.
The Chief (NTRC) asked about the road safety aspects in
the feasibility study. The Member (Planning) explained that it is an
essential part of all projects and highway safety audits are carried out
at detailed design stage.
8.22.
The Chief (T&C) suggested that services of NTRC be
utilized in NHA projects for highway safety related aspects.
8.23.
The VP-NESPAK suggested that road traffic related issues
for NHA projects be finalized in the consultation of NH&MP, provided
they develop the required expertise & employ highly qualified technical
staff, as is the practice in some Middle East Countries.
8.24.
The Member (Planning) opined that engagement of
services of NTRC need to be examined in the light of procurement /
PPRA Rules. The Chief (NTRC) suggested that a case in this respect
could be taken up with the Ministry of Communications for decision.
8.25.
The Board deliberated and cleared the proposal.
12
Decision
8.26.
After detailed discussion / deliberations the Board
recommended all the three PC-IIs with the following directions:-
Action By
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 manmonths 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.
9.
Member (Planning)
Agenda Item 6
VO-6 of M/s SAMBU for Construction of Lowari
Tunnel Project
Proposal
9.1.
The Executive Board is requested for approval of Variation
Order No. 06 against Civil Works Contract of Lowari Tunnel Project
(M/s SAMBU contractor) amounting to net effect of Rs
3,713,633,699/- (+68.41%) with accumulative variation of (+) Rs
4,382,020,300/- (80.72%), for revised cost of civil works contract to
Rs 9,810,788,949/-.
Deliberation
9.2.
The General Manager (Lowari Tunnel Project) made
detailed presentation.
13
9.3.
The Chief (T&C) desired to know whether amount of VO-6
is 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).
9.4.
The Chairman assured the Board that the observations
have been noted and will be taken care of in future.
Decision
9.5.
Action By
The Executive Board took decisions as under:a.
Approved Variation Order No 06 with cost effect as

mentioned above.
b.
NHA should ensure finalization of 2nd revision of the

PC-I within two months.
c.
The expenditures against VO No 6 can be incurred

upto the cost approved in 1st revised PC-I (Rs 18.132
billion). However, payments beyond that amount will
be subject to approval of 2nd revised PC-I.
Member (Construction)
14
10.
Agenda Item 7
Addendum-5 of M/s Geoconsult-Typsa (JV) for Design
Review, Construction Supervision and Contract
Administration of Lowari Tunnel Project
Proposal
10.1.
The Executive Board is requested for approval of
Addendum-5 amounting to Euro 16.19 million and Rs 356.13 million
(M/s Geoconsult-Typsa (JV)) having percentage increase of 404% and
350% respectively over the original consultancy cost of Lowari Tunnel
Project with total budgeted amount (including escalation) of Euro
19.96 million and Pak Rs 522 million, keeping in view the urgency,
delicacy and importance of the project.
Deliberation
10.2.
The General Manager (Lowari Tunnel Project) made
detailed presentation.
10.3.
The VP-NESPAK observed that the Addendum-5 has a
huge cost effect and when major tunnel work has been completed, yet,
is there any need of consultancy services?
10.4.
The General Manager (LTP) explained that since lot of civil
works are still to be completed and project completion is expected in
2017, works can not be carried on without supervisory consultant.
10.5.
The Chief (T&C) suggested that NHA may develop in
house expertise for latest developments in the engineering field like
tunneling, etc. The Board was informed that some of employees have
done their PhDs and a scheme of Highway Research & Training Centre
(HRTC) is underway for the purpose. The Board Members appreciated
efforts of NHA in this regard.
10.6.
The Additional Secretary Finance asked about vetting /
checking of VOs/Addendums by NHA. The Chairman informed that all
such documents/proposals are processed after thorough scrutiny by
Engineering / Finance Wings of NHA.
15
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.
Decision
10.10.
The Executive Board approved
consultancy services up to October, 2017.
the
proposal
for
10.11.
The General Manager (LTP) confirmed that total financial
effect of Addedum-5 is Rs 841.7 millions (@ Rs 143/- exchange rate of
Euro on September 17, 2013).
10.12.
Total budgetary cost including to-date variation orders
with yearly escalation is Rs 2,580 million (Actual payment to date +
remaining amount is estimated @ Rs 143/- exchange rate of Euro).
Action By
Agenda Item 8
Addendum-2 of M/s Associated Consultancy Center
(ACC) for Construction Supervision: Rehabilitation of
Kamber Shahdadkot Road Project
11.
11.1.
The subject agenda item could not be discussed due to
paucity of time and was deferred.
Action By
16
Agenda Item 9
Construction 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.
12.1.
The subject
Construction Wing.
Action By
agenda
item
was
withdrawn
by
the
Agenda Item 10
Addendum-2 of M/s Techno Consult for Construction
Supervision of Road from Hyderabad Badin to Mirwah
Sanjar Chang Road
13.
Agenda Item 11
Revised Addendum-1 of M/s ABM Engineers for
Construction Supervision of Kolpur Bypass Project
(N-65)
13.1.
The subject agenda items could not be discussed due to
paucity of time and were deferred.
Action By
Agenda Item 12
Regularization of Contracts Awarded to M/s FWO on
Single Source Basis for Emergency Works on Flood
Affected Areas of KKH, Thakot-Khunjerab Section
and Skardu Road (S-I)
14.
14.1.
The subject agenda item was deferred and will be
submitted again.
Action By
Member (Operation)
17
Agenda Item 13
Appointment of Auditors for Audit of NHA Accounts
2013
15.
Proposal
15.1.
The NHA Executive Board is requested to approve the
appointment 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
3,910,000
Nil
Total
Deliberation
15.2.
The Member (Finance) presented the case.
15.3.
The Additional Secretary (Finance) observed that major
companies of Auditors ie M/s AF Forgoson & Co, Ford Rhodes Siddat
Hayder & Co, Deloitte, and KPMG, etc, seem to be not considered for
this agreement. Such type of companies will be better for Audit
purpose and should have been contacted in this regard. The VPNESPAK also supported the remarks of the Additional Secretary (Fin).
The Additional Secretary (Fin) also enquired about the reasons for
quoting similar audit fee by the audit firms.
15.4.
The Member (Finance) explained that appointment of
Auditors was finalized after advertisement in which all the State Bank
listed "A" Category Chartered Accountants firms were requested to
submit the technical and financial proposals which also include the
"Big Four" audit firms as asked by the Additional Secretary (Fin) and
VP-NESPAK. Only M/s Deloitte (Karachi office) submitted the
18
technical proposal but due to non submission of financial proposal

they 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.
15.6.
Decision
15.7.
The proposal was approved with the recommendations
that major audit firms should also be persuaded for task in future. If
they have some reservations, NHA may consider and address the same
on merit.
Action By
16.
Member (Finance)
Agenda Item 14
Raising of Funds Through Domestic Sukuk Against
the Underlying Asset of National Highway (N-5, GT
Road):I.
II.
Peshawar Attock Section

Sukkur Karachi Section
Proposal
16.1.
Approval for use of assets of two sections of N-5 i.e
Peshawar Attock and Sukkur Karachi for execution of Sukuk
transactions through NHA Executive Boards resolution.
19
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)
Agenda Item 15
Payment of Arrears of Pay & Allowances wef Sep 12,
2005 Due to Upgradation of Posts of Audit and
Accounts Cadre
17.
17.1.
again.
The subject agenda item was deferred & will be presented
Action By
18.
Member (Finance)
Agenda Item 16
Withdrawal of Induction/Absorption of Syed Imran
Qadir Gilani as Director (Amin, BS-19) in NHA
Proposal
18.1.
The NHA Executive Board is requested to review their
earlier decision given in its 217th meeting held on Jun 4, 2012 to avoid
the legal complications/implications. The officer may be treated to be
on deputation in NHA as before the decision of his absorption referred
to above and he may be repatriated to his parent department
forthwith.
20
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
review of earlier decision do not seem appealing, as the matter was
discussed threadbare before arriving at the said decision. At the time
of discussion, it was stated in the Board meeting that with induction
of the officer, no promotional quota would be affected, since the
induction / absorption would be made against the direct quota. If the
statement given at that time was not true, then who is responsible for
providing unauthentic information. Before any final decision is taken,
the matter needs to be deliberated carefully, since it involves career of
the officer.
18.4.
The IG (NH&MP) opined that submission of cases to the
Board need to be investigated thoroughly with complete picture in
totality before decision. The Additional Secretary, Finance supported
the above point of view of the Members. The Chairman shared his view
that induction of the officer seems neither on merit nor as per rules.
18.5.
The Member (Admin) opined that, since the officer has not
yet completed 3 years service in NHA and his parent organization
(PTDC) does still exist, he can be repatriated to join his parent
department.
21
18.6.
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)
Agenda Item 17
Creation of 3x Supernumerary (Temporary) Posts of
GMs (Engr, BS-20)
19.
Proposal
19.1.
Approval for creation of three temporary posts of GMs
(Engr, BS-20) for intervening period, as given below, till availability of
PC-I vacancies for grant of acting charge appointment according to
seniority and for disbursement of pay & allowances. These vacancies
were filled on acting charge basis wef from Dec 2, 2010:a.
b.
c.
One post wef Dec 2, 2010 to Apr 30, 2011

One post wef Dec 2, 2010 to Oct 11, 2011
One post wef Dec 2, 2010 to Feb 22, 2011
Deliberation
19.2.
The Member (Admin) briefed the Board.
19.3.
The Chief (NTRC) raised a query as to whether the Board
is competent to create posts in BS-20 or otherwise. Section-7 of NHA
Act-1991 (amended 2001) for the purpose of creation of posts as
mentioned in the working paper was considered irrelevant. As per
Table-V-1, Chapter-5 of NHA Code 2005 powers for creation of posts
in BS-19 and above lies with National Highway Council (NHC) on the
recommendations of Executive Board.
22
19.4.
The Board deliberated and recommended the proposal to
NHC (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
20.
Member (Admin)
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,
following are proposed for approval:a.
To merge the seniority of PAs (BS-16) &

Stenographers on their upgradation in BS-16 as
Assistant Private Secretary (BS-16) in the unified
seniority list.
b.
On unification of seniority, existing PAs will retain

their seniority ahead of Stenographers.
c.
Since PAs were appointed or promoted in BS-16 prior

to Stenographers, as a matter of privilege, 5 x PAs
(regular) and 6 x PAs (PC-I but since regularized),
may be allowed two pre-mature increments each to
re-dress their grievance.
d.
Relevant provisions ie SI 5(o) & 6 in Schedule-IV of

NHAs (A&P) Rules-1995, defining recruitment
conditions against the posts of Stenographers & PA
(BS-16) may be replaced as under:-
23
Post
6.
Qualification
Assistant
Private
Secretary
(BS-16)
BA
Experience
Age
Full command
shorthand & Typing
and 5 years experience
on ministerial posts.
30
Deliberation
20.2.
The Member (Admn) briefed the Board.
20.3.
The Chief (T&C) opined that it should be checked that no
other 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.
Decision
20.5.
The Executive Board approved the proposal.
Action By
21.
Member (Admin)
Agenda Item 19
Request for Job in NHA against Deceased Quota: Mr
Muhammad Nawaz S/o Ali Nawaz, Ex-Driver of NHA
Proposal
21.1.
The Executive Board is requested to condone the delay of
around six years to facilitate appointment of Mr. Muhammad Nawaz
S/O Ali Nawaz Khaskheli (Late regular Driver NHA) against a PC-I
post as UDC on two years contract as per Federal Government
assistance package for families of Government employees, who die
while in service as notified by the Establishment Division vide OM No.
7/40/2005/E-2(Part-2) dated 15.03.2008.
24
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
withdrawn.
Action By
22.
Member (Admin)
Additional Agenda Item I
PC-I for Widening and Strengthening of Rakhi - Gaaj Bewata Section (N-70) 33.84 km
Proposal
22.1.
updated PC-I costing Rs 20,756 M for Widening and Strengthening of
Rakhi-Gaaj-Bewata Section (N-70, 33.84 km) for approval of
CDWP/ECNEC having the following financial breakup:a.
Original cost of project (33.84 kms): Rs 10,008 M

(GoP share: Rs 626 M, JBIC Loan: Rs 9382 M)
25
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
ii.
Rs 5,528 million, LEC Rs 13,298 million)
Package-2:
updated
(Financing by GoP).
cost
Rs
1,930
million.
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.
22.4.
The GM (Planning) clarified that, this section (33.84 km)
of the road has been designed as steel structure and most of the
construction work includes pile driving on hard rock using rapid
construction techniques in view of limited time available, therefore,
difference in cost is high as compared to normal road construction.
The Chief (T&C) supported the said version.
22.5.
After detailed deliberation, the Board cleared the proposal.
Decision
22.6.
The Board decided to recommend revised PC-I for
approval of CDWP/ECNEC after incorporating proposed amendments.
Action By
Member (Planning)
26
Additional Agenda Item II

Chinese Aided Post Flood Rehabilitation Projects:
Security Arrangement for Chinese Working on KKH
23.
Proposal
23.1.
An MoU was signed between Government of Pakistan and
Peoples 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 shown
grave 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
Police and the Frontier Constabulary as under:Project
Contract Agreement with
Thakot Raikot
Section (N-35)
Frontier
Constabulary
1st August, 2013
03 years
04
Commencement Date
Contract Period
No of Platoons
Cost Breakup
A.
One Time Expenditure (4 x Platoons) Amount (Rs in M)
Weapons
8.952
Ammunition
5.615
Protective Equipment
14.960
Vehicle Jammer
2.400
Wireless Equipment
0.796
Total (A)
32.723
B.
Recurring Expenditure
Pay (43 x FC staff)
4.763
Regular Allowances
7.490
Operating Expenses
0.451
Troops Welfare Fund (10%)
1.270
TOTAL B (One Platoon)
*13.977
*
Contract Agreement has been signed between NHA & FC

amounting to Rs 13.977 M per platoon per annum.
27
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
detail about the security arrangements.
23.3.
The Additional Secretary Finance inquired about the fact
whether NHA has gone through the requirements of Security Agencies
or whatsoever is proposed by them is agreed by NHA?
23.4.
The Chairman NHA clarified that NHA has scrutinized the
proposal and reduced number of security personnel from 600 to 240
which reduced cost of the item accordingly.
23.5.
The Chief (T&C) observed that this item has been
submitted in piecemeal, instead of in totality with works PC-I/
proposal of KKH FERP Projects.
23.6.
The Director (FERP) informed that Rs 800 million are kept
under PC-I for Chinese Aided Post Flood Rehabilitation Project and
PC-I has already been sent to MoC for onward submission to CDWP/
ECNEC.
28
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
approved proposal as mentioned above.
Action By
24.
Conclusion
/ deliberation the
Board
Member (Operation)
24.1.
The Chairman wrapped up the meeting by thanking the
Board Members for their active participation and useful input.
-----------------------
29
EXTRACTS
CONFIRMED MINUTES OF THE
230TH EXECUTIVE BOARD MEETING
SEPTEMBER 17, 2013 AT ISLAMABAD
30

CONFIRMED MINUTES
230th Executive Board Meeting
Islamabad, September 17, 2013
INDEX
PARA AGENDA ITEM
PAGE
ACTION BY
1.
Introduction
---
2.
Opening Remarks (Chairman NHA)
---
3.
Formal Proceedings (Agenda Items)
---
4.
Agenda Item 1
Secy NHA
Mem (P)
Mem (P)
Mem (P)
Mem (P)
13
Mem (C)
15
Mem (C)
5.
6.
7.
Confirmation of Minutes - 229th Meeting of the

Executive Board Held on Jul 9, 2013
Agenda Item 2
Amendment in Minutes of the 228th Executive Board

Meeting of Jun 11, 2013:Additional Agenda Items IV& V
Agenda Item 3

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

Pak China Economic Corridor (Khunjerab to Gwadar)
8.
Agenda Item 5
9.
Agenda Item 6
10.
Agenda Item 7

Muzaffarabad-Mirpur-Mangla- (N-5) Expressway
VO-6 of M/s SAMBU for Construction of Lowari Tunnel

Project
Addendum-5 of M/s Geoconsult-Typsa (JV) for Design

Review, Construction Supervision and Contract
Administration of Lowari Tunnel Project
PARA AGENDA ITEM
11.
Agenda Item 8
12.
Agenda Item 9
13.
Agenda Item 10
Addendum-2 of M/s Associated Consultancy Center

(ACC) for Construction Supervision: Rehabilitation of
Kamber Shahdadkot Road Project
Construction 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
PAGE
ACTION BY
16
Mem (C)
17
Mem (C)
17
Mem (C)
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

Construction Supervision of Kolpur Bypass Project
(N-65)
14.
Agenda Item 12
Regularization of Contracts Awarded to M/s FWO on

Single Source Basis for Emergency Works on Flood
Affected Areas of KKH, Thakot-Khunjerab Section and
Skardu Road (S-I)
17
Mem (O)
15.
Agenda Item 13
18
Mem (F)
16.
Agenda Item 14
19
Mem (F)
20
Mem (F)
20
Mem (A)
22
Mem (A)
Appointment of Auditors for Audit of NHA Accounts

2013
Raising of Funds Through Domestic Sukuk Against the

Underlying Asset of National Highway (N-5, GT Road):I.
II.
Peshawar Attock Section

Sukkur Karachi Section
17.
Agenda Item 15
18.
Agenda Item 16
19.
Agenda Item 17
Payment of Arrears of Pay & Allowances wef Sep 12,

2005 Due to Upgradation of Posts of Audit and
Accounts Cadre
Withdrawal of Induction/Absorption of Syed Imran

Qadir Gilani as Director (Amin, BS-19) in NHA
Creation of 3x Supernumerary (Temporary) Posts of

GMs (Engr, BS-20)
PARA AGENDA ITEM
PAGE
ACTION BY
23
Mem (A)
24
Mem (A)
25
Mem (P)
20
Agenda Item 18
21.
Agenda Item 19
22.
Additional Agenda Item I
23.
Additional Agenda Item II
Chinese Aided Post Flood Rehabilitation Projects:

Security Arrangement for Chinese Working on KKH
27
Mem (O)
24.
Conclusion
29
---
Re-designation the Post of Stenographer (BS-16) as

Assistant Private Secretary (BS-16)
Request for Job in NHA against Deceased Quota: Mr
Muhammad Nawaz S/o Ali Nawaz, Ex-Driver of NHA
PC-I for Widening and Strengthening of Rakhi - Gaaj Bewata Section (N-70) 33.84 km
------------------
Annex-A

LIST OF PARTICIPANTS
230TH EXECUTIVE BOARD MEETING
SEPTEMBER 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, National

Highways & Motorway Police
4.
Mr Aamir Hasan
Senior Joint Secretary

Ministry of Communications
5.
Mr Qazi Iftikhar Ahmed
Vice President NESPAK
6.
Mr Muhammad Shamsuddin
Qureshi
Chief NTRC
7.
Mr Munir Ahmed Anjum
Chief (T&C), P&D Division
8.
Mr Raja Nowsherwan
Member (Planning) NHA
9.
Mr Shoaib Ahmed Khan
Member Finance NHA
SECRETARY
10.
Mr Ali Akbar Memon
Secretary NHA
Continued.......
-2-
NHA OFFICERS
ITEM
11.
Mr Zia-ul-Haq
Member (Admn)
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)
Refer Para 1.2 of the minutes.
------------------
16, 17, 18 & 20
2 & AII

230-Executive Board Meeting of NHA

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NHA Executive Boards Confirmed Minutes

NATIONAL HIGHWAY AUTHORITY

230th Meeting of the NHA Executive Board held on Sep

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

Opening Remarks - Chairman NHA

230th Meeting, September 17, 2013, Islamabad

NHA Executive Boards Confirmed Minutes

230th Meeting, September 17, 2013, Islamabad

NHA Executive Boards Confirmed Minutes

PC-I for widening and strengthening of Rakhi - Gaaj

A-II. Chinese Aided Post Flood Rehabilitation Projects:

Minutes were accepted for confirmation.

In Agenda Items 8, 10 & 14 add the following

PMs directions regarding the subject matter

230th Meeting, September 17, 2013, Islamabad

NHA Executive Boards Confirmed Minutes

Para 18.7 under the head Decision may be

Conversion of last 10 km of Khanewal

NHA will submit revised PC-I for approval

The expenditures over and above the

230th Meeting, September 17, 2013, Islamabad

NHA Executive Boards Confirmed Minutes

Minutes of 228th Meeting

Project Cost. Annex-J

Contracts Awarded. Annex-L

Project Financial Phasing (Local).

30 months (3 months mobilization and

Proposal. PC-I cost of Rs 18,817

PC-I cost of Rs 19,217 million

Decision. PC-I cost of Rs 18,817

PC-I cost of Rs 19,217 million

Additional Agenda Item V

Minutes of 228th Meeting

Same as 21.2 above

Same as 21.2 above

Project Cost & Financial

Project cost summary is

Project cost Summary is at

230th Meeting, September 17, 2013, Islamabad

NHA Executive Boards Confirmed Minutes

Minutes of 228th Meeting

Project will be financed by

Project will be financed by ADB up to

Nine packages have so far

Nineteen packages have so far been

Project financial phasing

Project financial phasing (local):-

Proposal. Amended PC-I cost

Amended PC-I cost of Rs 49,861million

The Director (FERP) presented the case.

230th Meeting, September 17, 2013, Islamabad

NHA Executive Boards Confirmed Minutes

230th Meeting, September 17, 2013, Islamabad

NHA Executive Boards Confirmed Minutes

Total Cost (Rs)

230th Meeting, September 17, 2013, Islamabad

NHA Executive Boards Confirmed Minutes

Muzaffarabad- Azad Pattan

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

* Security Cost would be paid as per actual

Pak-China Economic Corridor (Khunjerab - Gwadar)

230th Meeting, September 17, 2013, Islamabad

NHA Executive Boards Confirmed Minutes

230th Meeting, September 17, 2013, Islamabad