Contractor given extension till next March without due process

Author: Aslam Shah

KARACHI: In a surprise and unilateral move, the project director (PD) of the Greater Karachi Water Supply scheme (K-IV), has extended the duration for completion of the phase I of the 260 million gallon per day (MGD) scheme by nine months.

The project was supposed to be completed by June 2018, but it could not be completed on time.

K-IV project director Assad Zamin, a non engineering and non technical official, currently working on a high-tech engineering post in violation of the Sindh Public Procurement Regulatory Authority (SPPRA) Act, has apparently given a go ahead to the contractor of project, the Frontier Works Organisation, to complete civil works by March 2019.

Zamin had on February 19, 2018, written a letter to Col (retd) Ajmal Rasheed, the executive director and the team leader of engineers, on behalf of the consultant Osmani and Company, allowing the additional time period, according to documents available with Daily Times.

Talking to Daily Times, the K-IV project director said that relevant government quarters had already been informed about the extension. Besides, he said that the project could be further delayed because of the time taken in the completion of allied works like augmentation.

The Karachi Water and Sewerage Board (KWSB) managing director, however, maintained that he was not aware of any extension granted for the project.

He said before granting extension of time period in any development project, it was obligatory to inform the Executive Committee of National Economic Council (ECNEC), and the federal and provincial Planning Commissions. He said permissions were required from these authorities for the purpose.

Section-10 of the relevant law states: time is of the essence for a contract, effective contract administration is critical to successful contract implementation, extensions in contract period should normally by discouraged, however, in exceptional cases, contract period may be extended, wherever inevitable, with penalty or without penalty as per conditions of agreement.

Under Section 10.2, on the basis of reasons stated in application by the contractor, describing detailed particulars of event(s), within specified period mentioned in conditions of contract, and section 10.3 describes liquidated damages for delay, if contractor fails to comply with time for completion, then procuring agency can penalise contractor by adopting any one of the rules and contractor is bound to pay liquidity damages for delay.

Liquidities damages shall be deducted from contract amount for every day or part of a day, which will elapse between dates on which prescribed time expired and dated work is completed at rate specified in contract agreement. The sum is equal to 5 to 10 percent (it is to be mentioned in agreement) of estimated cost of works divided by one-fourth of number of days specified as completion time.

Under section 10, the project is approved with specific period of completion. Efforts should be made to complete project within stipulated period to ensure flow of benefits well in time.

Due to certain reasons, if extension in implementation period is inevitable to achieve planned objectives, the principal accounting officer of ministries is competent to accord extension in implementation period but within approved cost of project. The planning and development department should be informed accordingly, according to prescribed rules.

It is pertinent to mention here that only 33 percent work of the project has so far been completed. The total cost of the project stands at Rs 85 billion.

The project length is 118 kilometers, 99 kilometers canals, 7.72 kilometers intake structure, 10.65 kilometers main siphons, 18 bridges, 15 super passages and 86 box culverts.

Earlier, the Water Commission had also sought explanation from consultant of K-IV about realignment of 22 conduits water supply trunk lines and asked Usmani and Company for submission of detailed written justification for the project’s revised designs.

The phase-I (260 MGD) of the project was expected to complete in mid-2019.

The project is meant to supply water to Karachi from Keenjhar Lake, by using latest technology including Satellite Imagery, GIS and 3D modeling.

Published in Daily Times, September 19th 2018.

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