Diplomatic Shuttle Service: Cda gets top bid of Rs106m from consortium

Despite high bid, firm proposes steep hike in fares

ISLAMABAD: The Islamabad Metropolitan Corporation (IMC) Friday received a bid of Rs106 million to operate the diplomatic shuttle bus service (DSS) for the next three years.

A total of 13 firms were expected to submit bids, but only 11 participated in the bidding process. A consortium of three companies called Diplomatic Facilitation Services has been awarded the contract for Rs106 million, edging out the Rs105.8 million bid from Waleed Associates and the Rs102.6 million bid from Bilal Travels.

The previous contract – which was voided by a court – had been awarded for Rs67 million.

Through the top most bid, the IMC has managed to raise 60 per cent more funds than the previous agreement. However, if the new agreement is approved, it would see ticket fees for riding the DSS raised by 150 per cent from Rs200 currently to Rs500 per trip.

The federal government had banned the entry of private vehicles into the Diplomatic Enclave in Islamabad in 2001 after the September 11 attacks in the US. Instead, a purpose-built terminal had been constructed for the diplomatic shuttle service for visitors and visa applicants going to various diplomatic missions.

Since its inception, the DSS was run by a private contractor who had exceptional support from senior Capital Development Authority (CDA) officials.

The project, however, was scrapped by the Islamabad High Court in 2015, which also directed the CDA to hold fresh bidding. In 2013 a judicial commission headed by Justice (retired) Sardar Raza Khan had also recommended that the contract for the shuttle service be cancelled after reports emerged that the contractor was charging exorbitant rates.

In June this year, a few days before the devolution of the Directorate of Municipal Administration (DMA) to the IMC, the DMA awarded the contract to operate the shuttle service to the same controversial firm. However, the then-CDA chief intervened and cancelled the contract while ordering fresh bidding.

But the DMA allowed the same contractor to participate in the bidding in June and awarded the contract to same firm again. The renewed contract was cancelled by the authority when the matter was reported in the press.

Published in The Express Tribune, November 26^th, 2016.