Rawalpindi Metro: TIP says excess fee paid to consultant

NESPAK charged 3% of the project cost for its services in the bus project

KARACHI: Transparency International Pakistan (TIP) has said that it has received a complaint that the Punjab government has paid National Engineering Services Pakistan (Nespak) extraordinary high consultation fee for the Islamabad-Rawalpindi Metro Bus project.

“Extraordinary fee (about 3% of the project cost) amounting to Rs1.2 billion was paid to Nespak for Islamabad-Rawalpindi Metro Bus project,” TIP said in a letter addressed to Hanif Abbasi, Chairman Metro Bus Project Monitoring and Implementing Committee.

“Due to wrong feasibility report prepared by Nespak, the estimated cost of the project has increased within months by more than 10% to over Rs50 billion from Rs44.5 billion. This figure does not include the cost of buses,” TIP said.

The letter quoting Rule No 45(5) of Punjab Procurement Rules 2014 said it allows engaging state-owned consultants through direct contracting, but prior approval from the government is necessary.

TIP said that lowest consultancy fee quoted for Multan Metro Bus Project and Green Line Metro Bus Project Karachi was around 1%-2% of the estimated cost of the projects.

Published in The Express Tribune, March 9^th, 2015.