NHA to Settle All Disputes With Chinese Firms Over CPEC Projects

The National Highway Authority (NHA) Executive Board has decided 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).

The NHA Executive Board made this decision as per the directive of the Prime Minister’s office and MoPD&SI for the following projects:

  1. Havelian-Thakot.
  2. Multan Sukkur Motorway.

The Board also accorded approval to address all the contractual issues through 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 Hasanabdal – 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 terms 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, (Km 00+000 – Km 20+400) and payment of an amount of Rs.200 million against DB Awarded Amount Rs. 1.276 billion of all (04) claims, the Employer shall have a financial saving of at least Rs. 1.076 billion in terms 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 the remaining 28 toll plazas to 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 the 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 retendering toll plazas be invited for a period of two years subject to satisfactory performance of the first year.

The meeting was held with Capt. (Retd.) Muhammad Khurram Agha, Chairman, NHA in the chair deliberated on an amicable settlement of all the disputes between NHA and Chinese companies as per the directive of the Prime Minister’s Office.



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