RDA denied departmental charges on RR project

Faces audit objections after receiving over Rs900m for Metro Bus project

RAWALPINDI:

The Rawalpindi Development Authority (RDA), which received more than Rs900 million in departmental charges as the executing agency for the Metro Bus project, has not been paid departmental charges for the Rawalpindi Ring Road project and will also have to face audit objections on the completed Metro Bus project.

According to details, after completion of the Metro Bus project between Rawalpindi and Islamabad in 2015, the RDA, as the executing agency, was paid more than Rs900 million as departmental charges at the rate of two per cent of the project's total cost of Rs44.85 billion.

A total of 250 audit objections were raised against the RDA over the project, of which 57 remaining audit objections are pending before the Punjab Public Accounts Committee.

On the other hand, the RDA, which was also the executing agency for the Rawalpindi Ring Road project, has not received service charges amounting to two per cent of the project's total cost of Rs49.69 billion despite completion of the project.

According to sources, the PC-I of the Ring Road project initially contained a provision, similar to the Metro Bus project, for payment of departmental charges equivalent to two per cent of the total project cost.

However, the provision for payment of the charges was later removed from the PC-I.

As a result, the RDA was deprived of its entitlement to two per cent departmental charges on completion of the Rawalpindi Ring Road project.

However, the RDA will still have to face the audit objections raised against the project upon its final completion.