ISLAMABAD: The Private Power and Infrastructure Board (PPIB), an institution working under the water and power ministry, has embarked upon a plan to raise a Rs500 million office complex to move out of a building rented about two decades ago.

Prime Minister Nawaz Sharif recently stopped the Oil and Gas Regulatory Authority from constructing a Rs1 billion building from its own resources to avoid “wasteful expenditure”.

Informed sources said the PPIB had hired the National Engineering Services of Pakistan (Nespak) as the consultant about two years ago and appointed a former Nespak official as project director for the construction of the luxurious 9-storey building at an estimated cost of Rs900m.

The consultant was hired for Rs40m and half of the amount has already been paid to it.

Later, the plan was changed and the PPIB management decided to construct a two-storey building at a cost of Rs500m. However, the project consultant and its services contract would remain unchanged at Rs40m, an official said.

Sources in Nespak said that in response to an advertisement about three dozen contractors had applied for prequalification before the deadline of Oct 3. After prequalification of firms on the basis of technical capabilities, financial bids will be invited for construction of the building.

A member of the PPIB’s board of directors told Dawn that the board had approved the construction of the two-storey building from its own resources because the federal government had refused to fund the project.

“The expenditure on engineering services for a nine-storey building and a two-storey building should have some difference,” he said.

PPIB spokesman Sami Rafi Siddiqui, who is supervising the project, said the board was now constructing a two-storey building for shortage of funds but the design would have the provision for additional floors to meet any future requirement depending on availability of funds.

At present, he said, the PPIB paid about Rs11m per year as rent for its offices.

The proposed building will be located in G-11 sector of Islamabad, about 10km from federal government’s offices.

He said the plot for the building had been purchased from the Capital Development Authority more than a decade ago.

Published in Dawn, October 11th , 2014