Several delays have been hindering the completion of the Lahore Orange Metro Line Project, media sources have reported. It may not be possible for the Metro Project to be inaugurated in April 2018.
According to details, Punjab government has re-tendered the contract of 13.2 kilometre long Chauburji-Ali Town track titled as ‘Package-2’ to Zahir Khan & Brothers (ZKB) at a rate that is 27pc higher.
Earlier, Punjab government has cancelled the contract of Package-II awarded to the Maqbool and Calson Joint Venture (MCJV) over the emergence of fraud.
According to official sources, Punjab government had initially awarded contract of Package-II to MCJV at a cost of Rs20.27 b on rebate rate of 12.20pc. NESPAK unearthed fraud of MCJV via ‘sound integrated test’. NESPAK’s findings revealed that the company had committed fraud by reducing the size of 22 branches of pillars 258 and 259.
At the time of cancellation of contract, MCJV, project work worth Rs10 billion had already been completed and Rs8 billion work on Package-II was pending.
ZKB had acquired contract of remaining work on Package-II at Rs12.59 b which included provision of additional machinery by Punjab government worth Rs1.50 b. Thus, the cost of Package-II has swelled up to Rs22.89b from an earlier estimate of Rs18.6 billion. Re-tender contract of same project at higher price is illegal substantial audit objections are expected to arise.
Sources monitoring the project told that the Punjab government had set an initial deadline of August-30, 2016 for completion of the project but the court order issued hindered 24pc of the work around historical buildings. 22pc work on Package-I has not been finished yet and Habib Construction Company has requested to extend the deadline to April-2018. This too seems too close as ZKB is importing new construction material from China which is expected to arrive in August-2017. Moreover, inner scuffles of contractors remain big hurdle in timely completion.
Similarly, decision to cancel hardware contract of Italian company and to get imported material tested from third party is also increasing difficulties.
The company responsible for laying railway tracks, electricity wires and construction of 85MW grid station for Orange Line Project has requested an estimate time of nine months for completion of said work.
Contractors of Civil Works have also expressed their inability to meet the set deadline of April-2018 and have asked Punjab government to extend the deadline for the Orange Line Project.
Lastly, Punjab government’s deadline to timely finish the work is reliant on Supreme Court’s (SC) permission to resume halted work.“Cost of project will swell by Rs12billion-Rs13 billion and work would be finished by year 2021 if SC orders change of route”, narrated sources.
Officials of Punjab’s finance ministry have revealed that Punjab CM has ordered that the Orange Line Project will be supplemented by additional grants besides the designated allocation for the project if need be.
