NHA to Pay Chinese Contractors in Foreign Currency

The government has allowed National Highway Authority (NHA) to make payments to the Chinese contractor/consultant, working on the Indus Highway project (N55), in foreign currency.

The Central Development Working Party (CDWP) has recommended the Executive Committee of the National Economic Council (ECNEC) to amend its early decision of payment only in Pakistani currency for Indus Highway (N-55) Additional Carriageway Project and allow payment in foreign currency, an official source told ProPakistani.

The source stated that the Executive Committee of the National Economic Council (ECNEC) considered the summary dated 04th September 2020 regarding Indus Highway (N-55) Additional Carriageway Project (Shikarpur – Rajanpur Section) (Length 221.95 Km) and approved the rationalized cost of Rs. 44.704 billion.

It was decided that all procurement under the instant project will be in Pakistani Rupee. Out of the total cost, Rs. 40.234 billion (US$ 241.27 million) will be financed through an ADB loan under Multi Tranche Financing Facilities (MFF) and the balance cost of Rs. 4.470 billion will be financed by the Government of Pakistan.

As per Authorization, a restriction was made that all procurement under the instant project will be in Pak Rupees.

The National Highway Authority NHA has contacted the government for an amendment to the ECNEC decision. The NHA has informed that while procuring the construction services of four sections for the subject project, the Chinese contractor of Lot-II has demanded a certain price in US Dollars and the Consultant also demanded remuneration in US Dollars for their International Expatriate staff which is permissible as per ADB guidelines.

The National Highway Authority has requested the government that wavers may kindly be granted & amendment may be issued in the Authorization which should state that “All Procurement under the instant project will be in Pak Rupees as well as in US Dollars as per ADB guidelines”.