ISLAMABAD, June 11: The government has awarded contracts of 37 projects worth Rs17.26 billion to Frontier Works Organization (FWO) without competition in the last three years. Defence Minister Rao Sikandar Iqbal, in response to questions by Peoples Party Parliamentarians Syed Naveed Qamar, informed the National Assembly that total contracts worth Rs25.91 billion were awarded to FWO during the period.
“Out of the total contracts, 37 amounting to Rs17,262.100 million were awarded on single tender basis,” said the defence ministry.
FWO has been undertaking diverse projects from Khyber to Karachi including construction of Defence Officers Housing Scheme in Faisal base, Karachi, at a cost of Rs13.296 million; construction of Torkhum-Jalalabad Road in Afghanistan at a cost of Rs2.06 billion; Layari Expressway project, Rs5.09 billion; Makran Coastal Highway project, Pasni-Gawadar section, Rs2.85 billion; DHA works at Karachi, Rs6.58 million etc.
Explaining the reasons for awarding contracts without competition, the minister said that federal and provincial government departments and semi-government agencies like National Highway Authority (NHA), Wapda, Cantonment Board and CDA had been awarding contracts to FWO on single tender basis because of its inherent capabilities which include disciplined work force, large pool of equipment, administrative and financial strength and work to be performed in remote areas, reputation and previous record of work.
The minister contended that the government contracts were awarded to FWO on competitive basis and the military organisation accomplished these projects within the assigned schedule.
In response to another question by MNA Ambreen Naeem, the lower house was informed that FWO earned a profit of Rs1.99 billion during the years 2002-03 and 2003-04. Of the profits earned by FWO, Rs660 million were deposited against negative balance; Rs124 million on administrative expenditure of HQ and units; Rs811.17 million on purchase of plants and machinery and Rs348.67 million on obligatory expenses of uniformed personnel and civilian establishment of HQ and allied units.
In reply to a question by MNA Muhammad Usman, the ministry of communications informed the house that the road from Rattodero to Gwadar would be completed by 2009-10 upon availability of funds amounting to Rs23 billion.