FAISALABAD, April 10: The National Engineering Services of Pakistan (Nespak) seems to be unwilling to carry out the responsibilities of designing and construction supervision of phase-3 of road project until an increase in its billing rates, it is learnt.

Sources said an increase in the rates would enhance financial burden on the City District Government Faisalabad. They said the company informed the district government that payments being made to Nespak were based on the rates agreed with the defunct municipal corporation in 1998 with only one increase of 20 per cent. In spite of price hike and increase in salaries of the employees, its billing rates were not revised.

A meeting with DCO Azam Suleman in the chair was also held the other day in which Nespak representatives expressed their reservations regarding low rates. The meeting agreed that the district government would take up the case with the authorities to fulfill the company’s demand.

The chair asked the company to submit its demand for approval of the Punjab government.

Sources said Nespak had submitted that it would execute the job for phase-3 of the Faisalabad Road Rehabilitation Programme with an increase of 10 per cent on current billing. The increase would be re-negotiated after June 30 next year. The company also proposed that 1.84 per cent would be the fee of designing work.

The company, sources said, also emphasised that works of phases-1 and 2 should be wound up by June 30 of this year and all the deductions the CDGF made from Nespak would be released shortly. In written proposals, the company did not elaborate on deductions, sources said, adding that it also suggested that the quantum of the required staff would be reviewed and adjusted from time to time.

Sources said the phase-3 involving millions of rupees for construction of different roads would be initiated after signing a memorandum of understanding with the NLC. The job of MoU signing would be done as soon as possible because the district government intended to initiate the phase without delay.

However, the works and services department sources said the fate of phase-3 was not clear as it was yet to be decided that which roads should be included in it. They claimed that the DCO was doing its utmost to start the programme, but without reaching an agreement with the NLC and Nespak plan would not be materialised.

DCO Azam Suleman said Nespak demanded increase in its rates, but the district government was not in a position to enhance rates on its own.

“The district government will submit Nespak proposals to the chief minister for approval and the phase will be initiated thereafter.”