9/17/2020

GOVERNMENT OF PAKISTAN
MINISTRY OF COMMUNICATIONS
NATIONAL HIGHWAY AUTHORITY

WIDENING & STRENGTHENING OF NATIONAL HIGHWAY N-70

(RAKHI GAJJ – BEWATA) 32.651 KM
(EAST WEST ROAD IMPROVEMENT PROJECT N-70)

SECOND EXTENSION IN LOAN DISBURSEMENT PERIOD OF LOAN

AGREEMENT PK P57 WITH JAPAN BANK FOR INTERNATIONAL
COOPERATION DATED 3 MAY 2008

EXECUTIVE SUMMARY OF PROJECT N-70

 National Highway N- 70 (447 KM) is the main arterial route from East to West across
the centre of Pakistan linking Multan and Quetta passing through Dera Ghazi Khan,
Loralai and Qilla Saif Ullah.
 N-70 is an, inter regional trunk road serving as the transport route for agricultural
products as well as coal and other minerals supplied from the mines in Balochistan.
 N-70 also lies on the Asian Highways Network passing through Pakistan linking India
with Afghanistan, Iran and Turkmenistan.
 N-70 is the shortest link 640 Km between Punjab at Multan and Balochistan at
Quetta. The other alternative road is Multan – Sukkur – Sibi – Quetta 820 Km.
 A Section of 33 Km passes through the mountainous terrain which has a narrow
width , steep slope and sharp curves. There are about 220 points with hairpin curves
where accidents often happen.
 Approximately 50% of trucks took a detour and use Multan – Sukkur - Quetta thus
increasing the travel time and transportation cost.
 With improvement of N-70 the east-west corridor of the country is shortened by about
220 km. Road improvement would contribute towards safe and effective transportation
through using large vehicles thereby enhancing the socio-economic environment of the
area

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PROJECT LOCATION
PUNJAB PROVINCE - DERA GHAZI KHAN DISTRICT -
TRIBAL AREA IN SULEMAN RANGES

LAHORE
AFGHANISTAN

MULTAN
IRAN
D.G. Khan

Project Area
N-70 (Tribal Area)

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LAYOUT PLAN OF PROJECT AS PER APPROVED PC-1

L = 32.651 Km

Km 32+651

PACKAGE-1B
PACKAGE-2 7.6 KM
PACKAGE-1A
13.2 KM
11.6 KM

START
Km 0+000
END Km 7.6
Km 19.5 (Girdu)
(Khar)

PROJECT APPROVAL SUMMARY

(Rs. Million)

Description GoP JBIC Loan Total

Original PC-1 Cost

(ECNEC 25.01.2008) 626.000 9,382.000 10,008.000

Revised PC-1 Cost

(November, 2013) 5,333.460 15,422.540 20,756.000

Revised updated Cost

(1 JPY = Rs. 0.85) 4,938.400 13,514.600 18,453.000
(ECNEC 10 April 2015)

Re-Revised updated PC-1 Cost

(1 JPY = Rs. 0.87)
(ECNEC 17 Dec 2015) 9,515.850 13,478.810 22,994.660

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REASONS FOR DELAY IN PROCUREMENT

• Special Terms of Loan
– only Japanese contractor and consultant eligible to Bid in lead role;
– JICA’s Concurrence at each step of procurement process.

• Three Procurement attempts made;

• LACK OF INTEREST from Japanese contractors to Bid;

• HIGHLY PRICED BID received in third attempt from only one

Bidder i.e. M/s TAISEI Corporation Japan.

• NEGOTIATIONS PROCEEDINGS with only bidder took long time as

detailed evaluation involved;

• DEPRECIATION OF PAK RUPEE;

ACHIEVEMENTS TO-DATE

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BRIEF SUMMARY OF CONTRACT FOR SECTION 1A

Contract Cost PKR 13,753 Million

Contractor (Japanese) M/s. Taisei Corporation, Japan

Consultants (Japanese) M/s. CTII-OC-EA-EE Joint Venture

Length of Project 11.6

BRIEF KM
SUMMARY OF
CONTRACT

Date of Commencement July 11, 2016

Date of Completion
July 10, 2019 (36 months)
(Original)
Date of Completion (Actual) December 25, 2019 (42 months)

Progress 100%

Before Construction

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AFTER CONSTRUCTION

Before Construction

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AFTER CONSTRUCTION

BRIEF INTRODUCTION OF NEW TECHNOLOGIES USED

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LATEST TECHNOLOGIES USED ON THE PROJECT TO ADDRESS ISSUES DUE TO

COMPLEXITY OF TERRAIN
1. STEEL BOX GIRDER (SBG) FABRICATED BY JAPANESE
ENGINEERS IN VIETNAM WITH JAPANESE ATMOSPHERIC
RESISTANT STEEL IN CURVED SHAPE

2. PREFABRICATED STEEL WIDENING STRUCTURE (PFSW)

FABRICATED IN JAPAN WITH JAPANESE ATMOSPHERIC
RESISTANT STEEL

3. ANGLE CUT CYLINDER EARTH RETAINING STRUCTURE (ACER)

4. MECHANICALLY STABILIZED EARTH WALL (MSEW)

5. FOAMED CEMENT BANKING (FCB)

6. GROUND ANCHOR FOR SLOPE PROTECTION AND ROCK FALL

PROTECTION WITH ROCK BOLTING, NETTING AND
SHOTCRETE.

FABRICATION OF STEEL BOX GIRDERS WITH ATMOSPHERIC RESISTANT STEEL AT

JAPAN AND VIETNAM

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FABRICATION OF PREFABRICATED STEEL WIDENING STRUCTURE WITH

ATMOSPHERIC RESISTANT STEEL AT JAPAN

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PFSW
PFSW

STEEL GIRDER BRIDGE

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PREFABRICATED STEEL WIDENING STRUCTURE (PFSW)

PREFABRICATED STEEL WIDENING STRUCTURE COMPLETED

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GROUND ANCHOR FOR SLOPE PROTECTION

Ground Anchor Completed

EXPENDITURE TO-DATE (PC-1)

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TO-DATE EXPENDITURE AGAINST PC-1

PC-1 Provision Expenditures to Date
S. No. Description
(Mill Rs.) (Mill Rs.)
1 Civil Works 18,617.250 12,683.694
2 Physical Contingencies 420.860 -
3 Price Escalation 666.290 583.162
4 Consulting Service 1,089.930 971.504
5 Administration Cost 275.790OF
BRIEF SUMMARY 142.180
6 Interest during Construction CONTRACT49.590 -
7 Import Tax 1,400.000 1,091.647
8 Commitment Charges 106.140 -
9 Land Expropriation, Compensation 50.000 67.599
10 Third Party Validation 68.810 -
11 Security Charges 250.000 -
12 Total Cost 22,994.660 15,539.786 (68%)

PSDP RELEASES AND EXPENDITURES

Allocation/Revised Allocation Releases

SR. Financial (Mill Rs.) (Mill Rs.)
No. Year
LC FC Total LC FC Total
1 2009-10 - - - - - -
2 2010-11 164.622 658.487 823.109 12.935 101.457 114.392
3 2011-12 40.000 83.830 123.830 15.822 83.830 99.652
4 2012-13 25.264 167.733 192.997 25.264 167.733 192.997
5 2013-14 102.247 1612.800 1715.047 102.247 22.842 125.089
6 2014-15 200.000 1000.000 1200.000 26.680 - 26.680
7 2015-16 348.907 1251.057 1599.964 348.907 1251.057 1599.964
8 2016-17 300.000 3000.000 3300.000 270.406 479.223 749.629
9 2017-18 1500.000 3041.114 4541.114 1214.443 3041.114 4255.557
10 2018-19 1200.000 5312.789 6512.789 1025.603 5312.789 6338.392
11 2019-20 1000.000 2455.15 3455.152 43.39 2455.15 2498.539
12 2020-21 500.000 500 1000.000 2.82 - 2.820
13 Total 5381.040 19082.962 24464.002 3088.514 12915.197 16003.711

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STATUS OF LAND ACQUISITION/UTILITIES RELOCATION

A. LAND ACQUISITION

Length 32.651 KM
Mauzas 10 Nos.
Land Acquired 2264 Kanal 09 Marla
Status Mutation in progress
Cost Rs. 67.599 Million

B. UTILITIES RELOCATION

Utilities in entire length of project have ben relocated.

STATUS OF REMAINING SECTIONS

• KM 0 TO KM 7.6: Condition is poor and is

proposed to be taken up out of unused loan
amount on priority. EAD 21 Aug 2020\Pics 1B

• KM 19.5 to KM 32.651: Condition is poor and

NHA is all set to proceed for the procurement
out of PSDP Budget.

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LOAN AGREEMENT PK P57

BRIEF SUMMARY OF LOAN PK P57

 Loan Amount ¥15,492 Million

 Disbursement to-date ¥12,036 Million (78%)
 Loan Signing Date 3rd May 2008
 Disbursement Period (Original) 9 Years (2008-2017)
 Disbursement Period (Revision-1) 3 Years (2017-2020)
 Interest Rate 0.2% per annum
 Commitment Charges 0.1% per annum
 Payback Period 40 years
 Grace Period 10 years
 Scope Covered Civil Works & Consulting
Services

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EXPENDITURE TO-DATE LOAN PK P57

Category Total Loan Expenditure Future Unused
Amount To-date Expenditure Loan
(Mill ¥) (Mill ¥) (Mill ¥) Balance
(Mill ¥)
A. Civil Works 13,087 11,135 712 1,380

B. Consulting Services 1,441 739 88 603

C. i. Interest during Construction 56 39.93 0 16

ii. Interest during Construction 1 0.326 0 0.67

D. Contingencies 785 0 0 785

E. Commitment Charges 122 122 0 0

Grand Total 15,492 12,036 800 2,656

(Excl. C)

FISCAL SUMMARY OF LOAN PK P57

• TOTAL LOAN AMOUNT ¥ 15,492 MILL

• DISBURSEMENT TO-DATE ¥ 12,036 MILL

• LIABILITIES BY YEAR 2023 ¥ 800 MILL

• EXPECTED UNUSED BALANCE ¥ 2,656 MILL

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REVISION-2 IN LOAN DISBURSEMENT PERIOD

• JICA emphasized for 7 years extension considering

procurement of Japanese Suppliers.
(24 October 2020 – 24 October 2027)

• NHA requested for 5 years extension considering the

execution of works through local suppliers.
(24 October 2020 – 24 October 2025)

JUSTIFICATIONS FOR REVISION-2 IN DISBURSEMENT PERIOD

• RELEASE OF DUE AMOUNTS TO CONTRACTOR AND CONSULTANTS

(¥ 800 MILL) AT EXPIRY OF DEFECTS LIABILITY PERIOD IN THE YEAR
2023.

• COMPLETION OF WORKS FOR SECTION-1 (7.6 KM) ¥ 2,263 MILLION

• ESTABLISHING A MAINTENANCE CENTRE DULY EQUIPPED WITH

EQUIPMENTS AND MATERIALS FOR WORKS COMPLETED WITH
JAPANESE TECHNOLOGIES AND MATERIALS. ¥250 Million.

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NHA’s PLAN FOR UTILIZING UNUSED LOAN BALANCE

OBJECTIVE: TO UTILISE UNUSED LOAN AMOUNT THROUGH LOCAL

FIRMS THUS STRENGTHENING THE LOCAL ECONOMY
• JICA MAY BE REQUESTED TO RELAX THE LOAN CONDITION FOR
CONSIDERING ISLAMIC REPUBLIC OF PAKISTAN AS ELIGIBLE
NATIONALITY FOR SUPPLIER ON FOLLOWING GROUNDS:
– PREVIOUS PROCUREMENT TOOK 56 MONTHS AND STILL RESULTED A
NEGOTIATED BID DUE TO LACK OF INTEREST BY JAPANESE FIRMS.

– BALANCE AMOUNT IS TOO LESS TO ATTRACT JAPANESE FIRMS.

– URGENCY FOR COMPLETION OF WORKS IN SECTION-1.

– PROCUREMENT OF SERVICES AND GOODS FROM JAPAN ALREADY MADE

> 30% OF LOAN AMOUNT.

CONTINGENCY PLAN IN CASE JICA REFUSES NHA REQUEST

• LOAN MAY BE CLOSED AFTER CLEARING LIABILITIES OF COMPLETED

SECTION IN THE YEAR 2023.

• PROCUREMENT OF WORKS FOR SECTION-1 MAY BE INITIATED

IMMEDIATELY THROUGH LOCAL BIDDING AND OUT OF PSDP

BUDGET.

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IMPLEMENTATION PLAN

 EXTENSION REQUEST TO EMBASSY OF

JAPAN THROUGH MOC AND EAD SEP 2020
 EXTENSION APPROVAL OCT 2020
 NHA REQUEST FOR LOCAL SUPPLIER NOV 2020
 JICA RESPONDS JAN 2021
 DESIGN REVIEW AND TENDER DOCUMENTS JAN 2022
 PROCUREMENT PROCESS AUG 2022
 MOBILIZATION SEP 2022
 COMPLETION OF WORKS SEP 2024
 DEFECTS LIABILITY PERIOD SEP 2025
 PROJECT CLOSE OCT 2025

THANKS

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