Work underway at a bus stop on a BRT feeder road | Abdul Majeed Goraya/White Star
Meanwhile, the former KP chief minister, Pervez Khattak, whose tenure had seen the BRT project begin, also rejected the PIT report. A National Accountability Bureau (NAB) probe into the project has been sealed by the Peshawar High Court till the completion of this project.
Sources said that the ADB was also requested to respond to the questions raised by the PIT report.
Despite the findings of the PIT, the KP government buried its head in the sand.
Even worse, the government announced the BRT launch for March 23, 2019. For face-saving, it then termed it a soft launch. But as the dreaded deadline approached, the Mahmood Khan-led government had no choice but to face reality and call off the launch altogether. An irked chief executive of the province promised action against those responsible for yet another gaffe.
Amid escalating tensions in the provincial government, groupings emerged within as some PTI members backed the current staff to complete the work while others believed it was time for accountability.
On the eve of March 22, Yousufzai arranged a casual ride on the BRT track for journalists despite the chief minister’s decision to cancel the March 23 launch.
Deconstructing the delay
In a trove of internal project documents that Eos managed to obtain, there is more than enough to suggest that the delay is not out of stupidity. There is a logic attached to it.
One of the documents, for example, argues that the PDA failed to provide details of the revised rates as per the Federation of Consulting Engineers (FIDIC) Contract Clause 12.3(a) & (b) (Conditions of the contract for construction, June 2010, Multilateral Development Bank Harmonised Edition). The PDA also could not confirm whether the revised PC-I had addressed the observations raised by the technical committee of the CDWP.
Another summary explains that the executing agency was instructed to revise rates through a market-based rate analysis (MBRA) by obtaining three quotations from authorised vendors and applying inflation and premium. The PDA submitted the receipts of revised rates for Reach-I, II and III but the documents lacked stamps and signed copies from vendors. It also did not outline how the authority calculated the rates and whether inflation and premium had been adjusted.
“The description of majority of the items also changed in the Revised PC-I (September 2018) from the version submitted to the PDWP in May 2018,” explains a source. “No justification was given.”
KP Information Minister Shaukat Ali Yousufzai claimed that the BRT project still costs the government 29 billion rupees and that design changes or delays had not increased the money spent on the project.
The PDA also failed to provide a record of ‘variation orders’ initiated by contractors and endorsed by the engineer. It is also did not submit construction drawings or details for the additional scope of works. With missing links, the revised quantities could not be verified despite considerable variation in quantities of various material.
The documents explain that the development authority also failed to comply with the KP chief minister’s approved summary for a 20 percent increase in infrastructure rates. Furthermore, the PDA adopted the 2016 market rate survey (MRS) instead of the approved MRS 2017. The MRS is a system employed by the government to assess the price of items in the open market.
Amusingly, the authority also erred arithmetically which led to a cost escalation. The syntax errors revealed that the application of metric units used for revised rates did not add up to the calculated rates.
An approximate 300 million rupee increase in the contract cost of the Project Management and Construction Supervision Consultants (PMCSC) was also witnessed. Meanwhile, it was also learnt that the PMCSC reduced its supervision staff by 40 percent when only 60 per cent of the infrastructure work was completed. Ironically, the contractual cost of the PMCSC was enhanced by 36 percent at the same time.
Similarly, the service charges of the Peshawar Implementation Unit (PIU) and PDA were also increased by 25 percent without outlining expenditures.
The PDA also applied double premium of 25 percent on the contractor’s profit and overheads and added another two per cent for health and safety.
The concept of associating premium — meant for fast-track implementation of the project — cannot be justified since the quick completion time (six months) in the contract was not achieved.
Although the PIT report does not directly lay blame on anyone, the director general PDA wrote a letter to NAB, after relinquishing his charge, and presented himself for all processes of accountability.
What happens next?
The new documented deadline for the BRT is June 30, 2019. This is the second extension of work on the project. The first phase of the contract was from December 2017 till June 2018. Currently, the BRT track is ready, with just one component called the “castle curve” missing. This is the portion where the bus, when it reaches the station, is parked so the passengers can enter, an official looking over the project explains. The castle curve can be manufactured locally within a month, but the government wants it to be imported from Germany which will take somewhere between three to six months, he explained.
The case of the Peshawar BRT is further complicated now since the officials who have been removed from the project are the ones who had been associated with the project for the longest time. The PDA director general, who is also the director of the BRT project, will need to be substituted with another official. This might seem to be an easy task but three well-reputed officials have already refused to take charge.
The one official whom the government appointed from within the PDA was removed within five hours because he was found to be implicated in corruption and involved in a voluntary return plea bargain with NAB. Perhaps the most immediately difficult decision for the next person in charge would be the signature required for financial transactions, which according to officials, would take a month and a half.
“The signature would have to be sent to the Economic Affairs Division in Islamabad by the KP government and then to the ADB office in Manila for verification,” explained an official of the PDA.
The signatures are then electronically transferred into a device which takes an additional 10 days and, for the funds to be transferred, it takes another 15 days.
“The first job of the new project director would be to sign 39 billion rupees,” says the official dealing with the situation at hand. Even if the new PDA director general takes charge by April 15, 2019 and everything works out perfectly well, the money can only be transferred to the project by June 15.
Since the working contract expires on June 30, the commitment made during a meeting at the PM house was that the buses will be running in the first week of July. “If the KP government does not take swift decisions,” argues the official, “we will have to go for another extension, which means further escalation of the project [cost].”
Secondly, another headache for the government is having to deal with the Variation Order (VO), according to another senior official of the PDA. The revised PC-1 was planned in accordance with the estimated costs. The VO depends on cost of material, quantity, time and scope of work, “all of which have increased with time,” he explains, adding that, in some places, they have had to use material and equipment that were not even part of the PC-1.
“This means that we will have to renegotiate the price with the contractor. In case of any disagreement, they will go to the arbitration court because the project is not locally funded and we might have to pay a penalty more than we even expect.”
The writer is an investigative journalist based in Peshawar. He tweets @IftikharFirdous
Published in Dawn, EOS, April 14th, 2019