LRRA expects to receive bids by July 31. PHOTO: EXPRESS/IJAZ MAHMOOD
LAHORE:
The deadline for submission of proposals for construction of the southern loop of the Lahore Ring Road, originally set for June 30, was extended twice on request of several prospective bidders and on account of Eid holidays, a statement on the Public-Private Partnership Cell says.
The Lahore Ring Road Authority now expects to receive all bids by July 31. The one-month extension does not affect the construction schedule originally mentioned in the RFP. The RFP states that the construction work should begin in February next year and could continue for up to 18 months. It says that the construction should be completed by August 24, 2017.
The RFP for the 30.4 kilometer southern loop states that construction would be undertaken in a Build-Transfer (BT) mode. Under the B-T mode, the ownership of the road would be transferred to the LRRA immediately after its construction. It further states that the LRRA would pay back the cost of construction in eight years, starting from the date of completion of construction work. It will reimburse the total cost incurred on construction by the firm in 16 bi-annual installments. It says that the dollar amount of each installment, determined at the start of repayment, will remain unchanged over the repayment period. However, the payment would be made in its equivalent amount in Pakistani rupees calculated using the ‘weighted average’ of exchange rates notified daily for six months in the market and by the State Bank of Pakistan’s Monetary Management Department.
The RFP says that the LRRA could finance the installments from its income or from budgetary allocations by the provincial government (under a Viability Gap Fund).
The RFP says the contractor may claim an early completion bonus, not more than the amount for two installments, if it completes construction before scheduled completion date. The contractor would be required to pay a penalty if it fails to meet the deadline.
Road route:
The 30.4-km southern loop will be divided into three sections. The 9.35 km section 1 will connect with the LRR northern loop with the Ferozepur Road. It will start from near the Sui Gas Housing Society and end on Ferozepur Road at Gajju Matta interchange. It will pass through Kamahan village.
The 13 km section II will connect Ferozpur Road with Raiwind Road. Starting at Gajju Mattah interchange, the road will pass Islampura, Halloki and Fazaia Housing Society before reaching Raiwind Road near Adda Plot. The 8 km section III will begin on Raiwind Road and end on Multan Road. It will pass close to Bahria Town and NFC-II Housing Society.
The road will be 90 metres in width for the entire stretch except at interchanges at Ashiana Housing Scheme, Attari Saroba; Gajju Matta on Ferozepur Road; on Kahna-Kacha Road; near Halloki railway line; Lake City; Adda Plot on Raiwind Road, Pakistan Medical Society and Gujjarpura on Multan Road.
Original plan:
The LRR project was originally proposed by a JICA team in 1991. Work on the project did not start until December 2004.
Published in The Express Tribune, July 27th, 2015.
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