Parliament Lodges Phase-II: CDA terminates Rs3b contract
Civic agency cites ‘slow pace of work’ in decision .
The shabby interior of Parliament Lodges. PHOTO: EXPRESS
ISLAMABAD:
The Capital Development Authority (CDA) has terminated a contract for the construction of official residences for members of the parliament.
The civic agency cited ‘slow pace of work’ for revocation of the approximately Rs3 billion contract, awarded back in January 2011. The project was supposed to be completed within three years.
However, according to the CDA, the contractor had only completed 20 per cent of the total work at the time the contract was terminated.
On the other hand, contractor Habib Rafique has obtained a stay order from a lower court against the decision.
The Rs2.9 billion PC-I of the project lists the construction of 104 additional family suites for members of parliament, including 500 servant quarters — in phase-II of the Parliament Lodges at Sector G-5/2. It was approved by the executive committee of the National Economic Council (NEC) on January 21, 2010.
The project was awarded to Habib Rafique at 35 per cent more above the initial estimate, while the project was supposed to be funded by the federal government under the Public Sector Development Programme (PSDP).
Around 1.4 acres were reserved for the project, where facilities such as a “spacious” car park, fire safety measures, garbage chutes, lifts, gymnasium, shops and departmental stores, public meeting rooms, lounges and a cafeteria had to be built.
At present, Parliament Lodges comprise of nine residential blocks, seven in the use of the parliamentarians, and two for the administration. The existing seven blocks have 358 family suites against a total of 442 elected senators and MNAs.
Legislators who do not have suites in the lodges have been provided rented accommodation in posh residential areas, the ministers’ enclave, or are paid substantial monthly house rent allowances.
In June 2014, after an inquiry into the delay in completion of work, the National Assembly’s Standing Committee on House and Library had suggested termination of the contract besides blacklisting the construction firm executing the project.
More recently, the CDA also issued several show-cause notices to the contractor, but in vain.
On the other hand, a representative of the contractor said that the delay occurred due to delays in release of funds by the federal government. He also said that at the start of the project, the CDA took more than the required time to approve the project design, which led to a delay in handing over possession of the land to the contractor.
National Assembly Speaker Ayaz Sadiq took notice of the issue on assuming his office. During the recent past, the speaker held several meetings over the issue and finally, it was decided to terminate the contract with the current firm and hand it over to another which can assure early completion.
According to sources, in a record scrutiny it has been found that the authority released a mobilisation advance — money given to firms to start the project — well exceeding the bank guarantees submitted by the contractor.
A mobilisation advance is issued after securing a bank guarantee from the contracting firm equal to the amount to be released to avoid complexities at a later stage in case the contract is terminated.
Published in The Express Tribune, April 13th, 2015.
The Capital Development Authority (CDA) has terminated a contract for the construction of official residences for members of the parliament.
The civic agency cited ‘slow pace of work’ for revocation of the approximately Rs3 billion contract, awarded back in January 2011. The project was supposed to be completed within three years.
However, according to the CDA, the contractor had only completed 20 per cent of the total work at the time the contract was terminated.
On the other hand, contractor Habib Rafique has obtained a stay order from a lower court against the decision.
The Rs2.9 billion PC-I of the project lists the construction of 104 additional family suites for members of parliament, including 500 servant quarters — in phase-II of the Parliament Lodges at Sector G-5/2. It was approved by the executive committee of the National Economic Council (NEC) on January 21, 2010.
The project was awarded to Habib Rafique at 35 per cent more above the initial estimate, while the project was supposed to be funded by the federal government under the Public Sector Development Programme (PSDP).
Around 1.4 acres were reserved for the project, where facilities such as a “spacious” car park, fire safety measures, garbage chutes, lifts, gymnasium, shops and departmental stores, public meeting rooms, lounges and a cafeteria had to be built.
At present, Parliament Lodges comprise of nine residential blocks, seven in the use of the parliamentarians, and two for the administration. The existing seven blocks have 358 family suites against a total of 442 elected senators and MNAs.
Legislators who do not have suites in the lodges have been provided rented accommodation in posh residential areas, the ministers’ enclave, or are paid substantial monthly house rent allowances.
In June 2014, after an inquiry into the delay in completion of work, the National Assembly’s Standing Committee on House and Library had suggested termination of the contract besides blacklisting the construction firm executing the project.
More recently, the CDA also issued several show-cause notices to the contractor, but in vain.
On the other hand, a representative of the contractor said that the delay occurred due to delays in release of funds by the federal government. He also said that at the start of the project, the CDA took more than the required time to approve the project design, which led to a delay in handing over possession of the land to the contractor.
National Assembly Speaker Ayaz Sadiq took notice of the issue on assuming his office. During the recent past, the speaker held several meetings over the issue and finally, it was decided to terminate the contract with the current firm and hand it over to another which can assure early completion.
According to sources, in a record scrutiny it has been found that the authority released a mobilisation advance — money given to firms to start the project — well exceeding the bank guarantees submitted by the contractor.
A mobilisation advance is issued after securing a bank guarantee from the contracting firm equal to the amount to be released to avoid complexities at a later stage in case the contract is terminated.
Published in The Express Tribune, April 13th, 2015.