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Today's Paper | May 01, 2024

Published 08 Apr, 2002 12:00am

Contract awarded to complete motorway

ISLAMABAD, April 7: The government has awarded contract for completing the remaining work on Peshawar-Islamabad motorway project worth Rs13 billion, without following the process of tender, marking a shift from the transparency claims of the present government.

According to NHA officials, an MoU was signed with a consortium of local contractors, led by the SKB, to complete the remaining work of Islamabad-Peshawar motorway.

The contract, sources say, would have saved more money if the process of tender was followed. Under the MoU signed, the contractor will be required to complete Peshawar-Islamabad motorway within three years, or four years, depending on the cash flow from the government.

The Turkish contractor was “expelled” from the site on May 7, on the ground that it had failed to complete two sections of M1 on March 23, 2001.

The contractor was promising that it would complete the two sections Islamabad to Burhan and Peshawar to Rushaki by Aug 14, 2001. The contractor, however, was firm that it would complete the project by December 2002.

Now the government is completing the work at the “risk and cost” of Turkish contractor. If the government saved the money which it had promised at the time of expelling the contractor, it would go to the contractor and if not then the contractor would be required to pay.

The Turkish company which is already in the court, has filed a fresh application, requesting the Civil Court Islamabad to stop the government from handing over the project to the local contractors without determining the total value of the works done by it. The application is likely to be taken up on Monday.

The Turkish contractor, has stated in its application, which will be taken up for hearing on Monday, that on a number of occasions it was approached by a group of “politically well connected local contractors” to leave the project as they wanted to take over the project.

Those who have watched the contract very closely since 1993 when the Turkish company arrived in Pakistan first, apprehend that the project might become pitfall for higher government functionaries, as the accountability bureau of the government had also evaluated the possibility of indicting former prime minister Nawaz Sharif for “reviving” the contract of Turkish contractor as it had been terminated by the PPP government.

The Turkish contractor was originally awarded the contract on March 18, 1993 which was cancelled by the PPP government in January 1994.

The reference, however, was not filed due to diplomatic problems, fearing that Pakistan’s traditional ties with Turkey may go sour as the then Turkish president was taking personal interest in the project.

“Now the same government has fallen in the same trap and awarded the contract worth Rs13 billion without following tendering process,” the source said.

Under the MoU it has been provided that the work would be completed within three years or four years, depending on the cash flow.

Inept handling of the project has risen the cost of the project manifold. Originally it was to be completed with Rs16 billion.

When the contract was revived it was announced that 156 kilometre long road would be completed at the cost of Rs22bn.

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