March 08, 2007	Thursday	Safar 18, 1428

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ISLAMABAD, March 7: The Capital Development Authority (CDA) is under immense political pressure to restore its Rs330 million contract to the Al Khan company which was cancelled last week because of inordinate delay in its execution, Dawn learnt on Wednesday.

Al Khan belongs to a brother of a federal minister and had lost two other CDA contracts worth Rs1.66 billion for the same reason.

Insiders said the CDA did not have the nerve to blacklist Al Khan and let off the firm with just “a very nominal fine”. It was now considering to refer the Al Khan case to the Planning Commission to shake off the pressure.

Meanwhile the traffic mess on the dug up main highway continues to test the patience of the travelling public.

The CDA can blacklist contractors for the violation of “any of its rules”, and for not completing a job in the stipulated time. However, despite leaving three projects incomplete, it did not take any such action against the firm.

“Al Khan failed to complete the project even after being given two extensions in time. If we re-award the contract to the firm it would set a precedent and leave no moral authority with the CDA to punish breach of contracts,” a senior official of CDA said.

A fine was imposed, and notice for cancellation of the contract was served on the firm last October when it could not finish even 20 per cent of the recarpeting of the portion of the highway from Rawat to Airport Chowk instead of the whole work, the official said.

At that time Dr Iftikhar, owner of the firm, using his influence, got the deadline extended twice to December. “But the firm did not mend its ways and made no progress. We were left with no option but to cancel the contract to save the people from further inconvenience,” said the official.

Another CDA source said the three mega projects awarded to Al Khan related to development and laying of infrastructure of the new Sector I-15 valued at Rs1.5 billion,, re-carpeting of IHW at Rs330 million and dualisation and re-carpeting of the Service Road from Zero Point to Sector G-10 at Rs160 million.

All the three contracts were cancelled due to poor performance of the firm. The National Assembly’s Standing Committee on Government Assurances termed the delay in the road projects in Islamabad a matter of grave concern and inconvenience to the people. The committee grilled the CDA official for the long delay in completing these projects and directed it to take necessary action against the contractors and expedite the work.

The CDA officials estimate that the three projects left unfinished by Al Khan would be delayed by six to eight months.