ISLAMABAD: The National Accountability Bureau (NAB) Director General (operations) Zahir Shah on Friday asked the National Highway Authority (NHA) to collect toll on national highways ‘honestly’ so that maximum revenue could be generated.

He was addressing a seminar on: “Corruption Curbs Economic Growth” jointly organised by NHA and NAB at NHA headquarters.

Commending the construction work of roads and their maintenance activity by NHA, he said, heavy amounts were required for this purpose.

“Joint efforts are needed to achieve a corruption free Pakistan and each individual will have to pass through the self-accountability process to curb corruption in every sphere of life,” he added.

Zahir Shah also termed increasing population one of major causes of slow economic growth.

Joint efforts needed to achieve a corruption free Pakistan, NAB official says

Earlier, NHA’s Member (administration) retired Capt Mushtaq Ahmed appreciated the measures taken by NAB to curb corrupt practices in society.

An inside source said NAB had smelt a rat in award of over Rs500 million contracts of eight toll plazas on national highways by NHA during last Pakistan Muslim League-Nawaz (PML-N) regime.

In order to investigate the matter, the bureau had sought details of the toll plazas from the NHA.

According to the NAB sources, the NHA had allegedly awarded contracts of eight toll plaza in violation of Public Procurement Regulatory Authority (PPRA) rules and against bidding and evaluation criteria of the NHA.

The NAB had already probed a similar case regarding award of contracts of toll plaza of the NHA in 2012 and after investigation it directed the authority for their re-tendering or re-bidding.

According to NHA’s estimates, motorways, which were given to private firms/semi government departments on build, operate and transfer (BOT) basis, were generating billions of rupees per annum for them.

According to contract, the private firms will recover its spending through toll tax in 20 years.

The Lahore-Islamabad Motorway (M-2), which has been given to the Frontier Works Organisation (FWO) on BOT basis for its re-carpetting, earns Rs1.5 billion per year.

Recently awarded Hyderabad-Karachi Motorway (M-9) to the same FWO generates Rs2.5 billion road tax yearly. Habibullah Bridge/Road (which has also been given on BOT basis) fetches Rs1.25 billion per year. Both Lahore-Faisalabad Motorway (M-3) and Islamabad-Peshawar Motorway (M-1) generate toll of Rs0.5 billion each per year.

The NHA has recently awarded a contract of reconstruction of Islamabad to Lahore Motorway (M-2) to Frontier Works Organisation (FWO) at Rs10 billion and the money would be paid to the FWO in 20 years from toll collection.

Overall financial value/cost of the road is said to be over Rs450 billion. The right of way of hundreds of kilometer road and its commercial/service area has also been given to the contactor.

When contacted a senior official NHA who did not want to be named supported the idea of handing over major roads to contractors on BOT basis and said: “The NHA will save hundreds of billions of rupees by awarding contracts on BOT basis. It will be a big achievement that almost all major highways will be constructed without spending a single penny from the national exchequer.”

Published in Dawn, November 23rd, 2019