ISLAMABAD: Minister of State for Communications Murad Saeed claimed on Tuesday that the National Highway Authority (NHA) has achieved targets set for it during first 100 days of the government.
Speaking at a press conference, he said the NHA generated Rs3.72 billion by taking several austerity measures, increasing revenue, auctioning vehicles and retrieving its encroached land.
He said the authority earned Rs1,412 million in revenue generation due to good governance, Rs1,596m from campaign against encroachments, Rs208.8m from auctioning government vehicles, Rs36.1m from reduction in expenditures and Rs468.2m in respect of audit.
However, the NHA is still facing acute financial crisis and its all main projects (including those executed under the China-Pakistan Economic Corridor) are said to be halted by the contractors due to non-payment of their outstanding dues of Rs40 billion.
The minister said he had put an end to serving of tea to the officials and guests as an austerity measure. “We have abolished entertainment bill of the NHA after which tea is not being served to the officials,” he added.
However, a lavish hi-tea was served to the NHA officials and members of media groups after the press conference.
There have been reports that the NHA had not passed through a financial crisis in which its liabilities have crossed Rs40bn mark.
The amount of liabilities, in terms of payments of contractors is increasing with every passing day because after certain days the authority is bound to pay the dues of contractors at 7 per cent interest rate. Once the construction work stops because of non-payment of dues, the contractor also charges prolongation charges (for its labour, machinery, etc., on the site). Therefore, liabilities of NHA are increasing by Rs600m per month (Rs200m due to 7pc interest and Rs400m because of prolongation charges).
The contractors of NHA have not received payments since May and the cheques issued by the caretaker government had bounced the same month. A month ago, the government released Rs8bn for NHA against over Rs40bn liabilities and the second tranche is expected to be released next month.
The minister said establishment of monitoring and elevation cell, mechanism of internal audit, improvement of toll plazas and public facilities in service areas, inauguration of national road safety strategy and road safety education were a few steps included in good governance initiatives of the government.
He said facilities of e-tendering, e-bidding and e-billing have been introduced and special audit of plans from the Auditor General of Pakistan as well as inquiry of land acquiring of the National Highway Foundation would ensure transparency in award of projects.
Mr Saeed said 187,000 saplings of different species had been planted throughout the country as part of the Green Pakistan Campaign initiated by Prime Minister Imran Khan.
He said two rest houses at Naraan and Kaghan had been converted into tourist resorts to generate income.
Provision of informative assistance to passengers, inauguration of help application, up-gradation of helpline 130, and one-window operation regarding driving licence authority were a few steps pertinent to be mentioned, he added.
Mr Saeed said new road projects would be awarded on the Build Operate and Transfer (BOT) basis and Toll Operate Transfer (TOT) model under which the NHA would not depend on government funding for executing new projects.
Asked why action was not being taken against illegal construction of outlets in services areas of Islamabad-Lahore Motorway (M-2) by a contractor, the minister said: “Whatever we have done so far is not a small thing. We will go against other encroachments in future.”
Published in Dawn, November 28th, 2018