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September 4, 2002 Wednesday Jamadi-us-Saani25,1423

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NHA to extend contracts of 3 firms



By Our Staff Reporter


ISLAMABAD, Sept 3: The National Highway Authority (NHA) executive board members would hold a 3-day meeting at Naran to extend contracts of three private firms for consultancies, Dawn reliably learnt.

The nine-member executive board would leave for the hilly area today (Wednesday), an NHA official confirmed to Dawn.

The board would consider DI Khan-Mughalkot Road project and grant extension contract to consultants M/S REMCO & EA Joint Venture. Dera Allah Yar-Nuttal Road Project (N-65) would also be considered with special reference to extension of time to consultants M/S Associated Consultancy Centre Limited.

The board would also revise consultancy services arrangement between NHA and M/S BGE-ACE of Lahore for the Lahore-Islamabad Motorway project (M-2).

The revised bills of quantity (BOQs) for the improvement of Islamabad-interchange on Lahore-Islamabad Motorway would also be considered for approval, the sources said.

The executive board is also expected to approve the construction and supervision of Ormara-Pasni section of the Makran Coastal Highway.

Around 40 rooms of almost all the motels in Naran have been reserved for the NHA executive board meeting.

When contacted an NHA official said that the authority is required under an executive board decision to hold board meetings in the provincial capitals for close coordination of various projects in the provinces.

The last two board meetings were held in Karachi and Lahore; it was Peshawar’s turn this time, but was shifted to Naran.

No NWFP or northern areas-specific project on the agenda of the scheduled for Sept 5-8 in Naran, the official said.

The recent visit of NHA board members to coastal highway arranged by the Frontier Works Organization (FWO) was billed at around Rs1.8 million to the coastal highway project, the sources said.

The board was reconstituted last year with the induction of joint secretaries of communications, finance, planning and economic affairs besides member planning and finance of the NHA.

Previous to this, the federal secretaries of communications, finance, planning and economic affairs were members of the NHA executive board.

“If they do not respond by the given date, the NHA would resort to other options,” said the general but did not disclose what those options could be, to keep the legal strategy guarded. “We want a graduated response from Bayinder because we are confident that the amount is recoverable,” said the NHA chief adding that ICSID has not so far registered the case of Bayinder seeking $400 million from the NHA.

The Turkish company, which had been expelled from the site about two years ago, has approached the ICSID, on the basis of Bilateral Investment Treaty between Pakistan and Turkey. The ICSID is a forum set up under UN Convention.

The contractor is demanding about US $ 400 million from the Pakistan as it had been “expelled” from the site for its failure to complete two sections of Peshawar Motorway on the agreed schedule.

Since the expulsion of the Turkish contractor last May, 2000, Pakistan has faced multifarious problems concerning Peshawar Motorway project.

At the time of expulsion it was argued by the government that the project would be completed with lesser cost and also on time.

The Pakistan government was blocked from encashing a bank guarantee offered by the Turkish banks as Bayinder had obtained a prohibitory injunction against the encashment of guarantees till the dispute was resolved.






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