CPEC road projects: Pak’s NHA to settle disputes with Chinese firms

INTERNATIONAL DESK: Pakistan’s National Highways Authority (NHA) Executive Board has approved to initiate an amicable settlement process of all the disputes between the Authority and Chinese companies for two projects of the China-Pakistan Economic Corridor (CPEC).

Sources revealed to Business Recorder that the Board meeting held with Capt (retired) Muhammad Khurram Agha, chairman NHA in the chair which deliberated on an amicable settlement of all the disputes between NHA and Chinese companies as per the directive of the Prime Minister’s Office.

The NHA Executive Board approved to initiate an amicable settlement process of all the disputes between the NHA and Chinese companies as per the directive of the Prime Minister’s Office and the MoPD&SI for the following projects: a. Havelian-Thakot; b. Multan-Sukkur Motorway.

The Board also accorded approval to address all the contractual issues by way of a settlement agreement between the parties and submit the draft settlement agreement for approval of the Executive Board.

The NHA Executive Board approved the settlement of disputes regarding the construction of Hassanabdal-Havelian Expressway (E-35) Contract No. ICB-E-35-III: Sarai Saleh to Simlaila (Km 39+611 to Km 58+711) and payment of an amount of Rs.350 million against DB Awarded Amount Rs.1.841 billion of all four claims; the Employer (NHA) shall have a financial saving of at least Rs.1.491 billion in term of claims duly reviewed and decided by the Engineer and Dispute Board.

The Board also approved the settlement of disputes regarding the construction of Hassanabdal-Havelian Expressway (E-35) Contract No. ICB-E-35 Package-I of M/s CGGC – GRC JV, (Km00+000 – Km 20+400) and payment of an amount of Rs.200 million against DB Awarded Amount Rs1.276 billion of all four (04) claims; the Employer shall have a financial saving of at least Rs1.076 billion in term of claims duly reviewed and decided by the Engineer and Dispute Board.

The NHA Executive Board also decided to annul and re-tender the consultancy services for feasibility study and detailed design for road tunnel across Babusar Pass and its link access roads owing to no competition on a highly technical project of national importance.

The Board approved the award of 33x toll plaza to the highest bidders, where quoted bids are more than the previous year’s bids and subject to the difference in reserved price & quoted bid price is in single-digit after provision of data by NTRC.

The Board allowed NHA to handover O&M of toll operation of remaining 28 toll plaza to the GMs concerned after the expiry of the contracts, i.e., June 30, 2022, under an interim arrangement as per Clause 12(b) of NHA Code Vol-I till the finalization of re-tendering of these toll plazas and mobilization of a new operator through regular procurement.

Moreover, the regional GMs concerned will ensure to collect maximum revenue during the interim period.

The Board directed that instead of three years or one year, bids for re-tendering toll plazas be invited for a period of two years, subject to satisfactory performance of first year. (Business Recorder)