Financial Revenue Management: NHA Board Highlights Need for “Road Development Fund” – Pakistan
ISLAMABAD: The Executive Council of the National Highways Authority (NHA) has recommended the creation of the “Road Development Fund (RDF)” of the financial management authority of the revenues generated by the Build Operate Transfer / Public Private Partnership BOT / PPP projects, we learn.
Official sources revealed to company registrar that the Board of Directors has recommended proposals for approval by the National Highways Board, which include (a) an amendment to the Highways Maintenance Account (RMA) Rules of 2003 to allow the NHA to create an RDF for financial management of income generated by BOT/PPP projects; (b) creation of RDF; and (c) the terms of reference of the RDF as reviewed by the audit committee.
The Board further directed that (a) the RDF Management Committee (RDFMC) be managed directly by the NHA Executive Council with assistance from the Audit Committee; (b) the Audit Committee will also review the Terms of Reference for the Road Development Fund before submitting them to the National Highways Board for its creation and amendment in the RMA Rules 2003.
The NHA Board of Directors has considered the matter of “developing a business plan for the NHA” and has decided to seek advice from the Vice Chairman of the Planning Commission (DCPC), who is at the head of the Supervisory Committee before taking any other action in the matter.
The Board approved Addendum No. 01 of M/s Republic Engineering Corporation (Pvt) Ltd in joint venture with M/s LOYA Associates and M/s TECCHNIA Consulting and Management Engineers for the supervision of the construction of a 4 lanes on the Indus River from Layyah to Taunsa including 2 lane (24.272 km) approach road and river formation works amounting to Rs 43.036 million with revised contract cost of Rs 187.652 million, overall increase of 36.25% and EOT according to the construction period for lot II.
The ANH Executive Council has approved the following: a. Construction cost of Rs 4.080 billion for construction of Speena Morr Bypass (new build 11.8 km 4 lane) determined after detailed design on contract rates. b. Re-appropriation of BOQ using the saving of Rs 1.75 billion determined by the project “engineer” according to the actual requirements of the site. vs. Variation Order No. 01 for Dualization and Improvement of Indus Highway Package-2 Karak to Kohat including Speena Morr Bypass (11.8 km) in the amount of Rs 2.329 billion – (with an overall increase of 19.50% above the initial contract price), already approved by the NHA Executive Council at its 346th meeting held on January 11, 2021.
The NHA Board of Directors approved the extension of the 2nd deadline, in the “contract for the dualization and improvement of the Pindi Gheb – Jand – Kohat road, the modernization / dualisation of the Kohat motorway link via Jand (package-3)”, at M/s KNK-SKB (JV) of Khushalgarh–Kohat Road 38.06 km (Package-III) from 01 October 2021 to 30 April 2022 (7.0 months) with financial effect of Rs 531.869 million.
Copyright Business Recorder, 2022