AJK wants govt’s approval for awarding road projects to FWO

Lack of interest from private contractors compelled state govt to look towards the contractor

ISLAMABAD: The government of Azad Jammu and Kashmir is urging the federal government to relax rules for awarding two road projects to Frontier Works Organisation without a undertaking a bidding process, sources told The Express Tribune on Monday.

The two projects, worth over Rs1.6 billion, are situated near the Line of Control (LoC) with India and were approved by Executive Committee of National Economic Council (Ecnec) in June 2014.



Problems in awarding contracts, due to close proximity with the LoC, have stalled progress on the projects for more than two years since private contractors are reluctant to make bids.

Earlier, the government of Azad Jammu and Kashmir tried to start an open bidding process award, but without any positive response, the sources said.

Ministry of Kashmir affairs and Gilgit Baltistan had requested the federal government to allow the awarding of the contracts to FWO on a single source base. Sources said that the board of Public Procurement Regulatory Authority (PPRA) in its meeting held on July 14, 2015 considered the case and recommended a one-time exemption of Public Procurement Rules 2004.

It also recommended awarding of the contract to FWO on single source base subject to the condition that FWO would be responsible for any additional costs incurred due to cost or time over-runs.

The FWO, however, refused to accept the project under the stated conditions, sources claimed. FWO highlighted the high chances of cost overruns associated with the projects due to their close proximity with the LoC.



The PPRA board reconsidered the project in its meeting held on January 19, 2017 and recommended the deletion of the condition regarding additional costs being borne by FWO following any delay in the project competition.

The first project is related to metaling and black topping of Authmuqam-Karen bypass road which is 40 kilometres long and located in district Neelum. It will cost Rs765 million.

The second project is related to improvement and reconditioning of Noseri Leswa bypass road which is 52 kilometres long and is located in district Muzaffarabad and Neelum costing over Rs878 million.

Published in The Express Tribune, September 26^th, 2017.

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