ISLAMABAD, July 22: City managers on Tuesday awarded the contract for the construction of Zero Point Interchange (ZPI) to Maqbool Associates (MA) for Rs2.33 billion after the Karachi- based firm slashed its already lowest bid by Rs80 million.

Sources in the Capital Development Authority (CDA) told Dawn that even though the original lowest bid was 77 per cent above the estimated cost of the ZPI project of Rs2.2 billion, the current inflationary trend and the firm’s voluntary reduction made its offer acceptable to CDA.

As it was going to engage the firm for the first time, the CDA sent a four-member technical committee to Karachi to inspect the projects it was executing at its home base.

The committee comprising member planning Raja Nausherwan, member engineering Mohiuddin Kakakhel, member finance Kamran Qureshi, Director General (works) Abdul Jabbar Milano and consultant engineering after visiting sites of different projects gave approval to award the contract.

Chairman Kamran Lashari gave directives to the construction company and the CDA officials to ensure quality of international standard, smooth flow of traffic during the work and completion of the project within the stipulated time.

He also emphasised the need for ensuring safety of motorists and commuters and meeting all environment concerns during the project.

The authority had received bids on June 29 from four pre- qualified firms and the lowest was submitted by the Karachi-based company, Maqbool Associates. Others who had taken part in the bidding were: Sachal with the highest bid of 166 per cent above estimated cost, Habib Rafiq, 99 per cent and Usmania Associates 104 per cent.

The ZPI project is being started with a view to overcome increasing traffic pressure at the centre of the capital — Zero Point — which is one of the busiest traffic points in Islamabad.

According to the rules of Pakistan Procurement Regulatory Authority (PPRA) no department could negotiate the rates with any single construction firm but the CDA negotiated the ZPI rate with the firm.

Talking to Dawn the CDA’s director-general works Mr Milano argued that in this specific project the CDA was following the rates of road construction of National Highway Authority fixed in 2006 but market conditions have changed and the rates have gone soared sharply in the market therefore it was revised according to the NHA rates of 2008.

The CDA had sought funds from Public Sector Development Programme 2008-09 to start work on the project but the federal government refused, forcing it to bear the entire cost by itself.

The authority finalised the design of the ZPI after some changes in the new design to save the National Monument constructed at Shakarparian hills and removing some technical flaws in the original design that was prepared by a Karachi-based firm, Engineering Consultant International Limited (ECIL), who designed Shershah Bridge in Karachi which collapsed few months ago.

The DG works said the project would be executed in two phases. First the three major loops of the interchange would be constructed and two more loops connecting Suhrawardy Road and Shakarparian would be constructed in the second phase.

The authority has also finalised alternative traffic routes to be used during execution of the project which will be completed in two years. Work on loops and slip roads is proposed to be completed within six months.