BRT Peshawar’s cost hits Rs. 71b
PDA official replied that this cost escalation was due to the devaluation of Pakistani rupee and that additional funding would not be required.
PDA (Peshawar Development Authority) has notified the provincial government that cost of Peshawar’s Bus Rapid Transit (BRT) project has increased another Rs. 3 billion. This brings the cost up to a total of Rs. 71 billion.
The PDA is working on a much-delayed project, which has missed numerous deadlines and the reason being problems with the design, these delays have caused embarrassment to the provincial government.
This problem regarding BRT’s cost increase and PC-I revision was discussed during a ‘progress review meeting’, which was held on 21st August with Dr. Shahzad Bangash, additional chief secretary.
During the meeting, Mohammad Uzair, PDA director-general engineer, told the members that the BRT project’s cost increased another Rs. 3 billion and for this purpose, revision of PC-I was a must.
Additional Chief Secretary (ACS), Dr. Shahzad Bangash expressed his concern about this increase in cost and said that it was made clear that neither PC-I would be revised nor the deadline would be extended for the project. However, the PDA official replied that this cost escalation was due to the devaluation of Pakistani rupee and that additional funding would not be required.
ACS asks for justification on the lagging project:
The ACS then ordered all participants to make separate presentations on the issue and come up with a solid justification so, they can make a decision about this issue.
If the decision or revising PC-I is made, then it’ll be the second time it will happen, since earlier in 2019, the cost of the project increased from Rs. 49 billion to Rs. 68 billion, due to defective design, and from there onwards, project modifying has been unending.
As per the PDA chief, the project contractor broke the contract and did not abide by all the clauses of contract agreement, due to this warnings were issued to the contractor. Asian Development Bank’s representatives said that interim liquidated damages could be imposed on the contractor if the PDA wanted to.
Meanwhile, the PDA chief told during the meeting that it was agreed upon sectional milestones with the contractor, and if they were unable to reach these milestones, then interim LDs would be imposed. The meeting then decided to impose the penalty, as decided by the engineer.
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