CDA receives 10pc below-tender bid for Margalla Avenue project
ISLAMABAD: The Capital Development Authority (CDA) has received a bid 10 per cent below the tender cost for a new mega road project after normalising its bidding criteria.
Over the past year and a half, the CDA had called tenders for mega road projects under what officials described as “harsh criteria”, which benefited only a few construction companies. As a result, limited firms participated in the bidding process.
However, a few months ago, the CDA relaxed the criteria for new projects, resulting in healthy competition. As many as 13 companies participated in the bidding process for the road project, which involves the construction of a 2.7km portion of Margalla Avenue to link it with Peshawar Motorway (M-1). The construction of an interchange on G.T. Road is also part of the project.
Sources said out of the total 13 companies, technical bids of two were rejected. After scrutiny of the remaining 11 firms, the CDA opened the financial bids for the project the other day. The Notice Inviting Tender (NIT) cost of the project is Rs3.58 billion.
According to sources, a construction firm, New Khan Builders, emerged as the lowest bidder after submitting a bid 10 per cent below the NIT cost. “Yes, financial bids have been opened and New Khan Builders is the lowest bidder with a 10 per cent below bid rate. Soon, after completing some formalities, we will award the contract to start this project,” said a CDA officer.
It is relevant to note that last year the CDA had invited bids for five mega projects, including the Serena Interchange, Murree Road underpass, T Chowk Flyover, Shaheen Chowk and F-8 Interchange, under strict criteria such as completion within the shortest possible time.
As a result, only a few companies submitted bids and, out of the five projects, four worth billions of rupees were executed by a joint venture of two companies.
Sources said one of the mega projects, originally worth Rs1.3 billion, has been facing controversy due to an abnormal increase in work. However, the CDA did not release payment for the “extra work,” and the matter is currently under probe.
This time, after the fast-tracking requirements were removed, a large number of companies submitted their technical and financial bids, helping the CDA secure a 10 per cent below-tender offer.
The 2.7-kilometre road will start from GT Road and culminate near the Sangjani Grid Station within Islamabad’s limits, where it will connect with another 2.5-kilometre road to be ultimately linked with the M-1.
The National Highway Authority (NHA), through its contractor, is already executing the 2.5-kilometre portion of the road falling within the limits of Rawalpindi. Work on this section is continuing at full pace and it will be linked with the M-1 near the AWT Housing Society.
The CDA project, once started, is expected to be completed within eight months. It is pertinent to mention that the project has remained under discussion for the past five years. The PTI government had also announced the start of the project but delayed it. Later, the CDA on several occasions announced that it would begin the project soon.
The CDA will build a three-lane dual carriageway with two-lane service roads, including a cloverleaf interchange.
According to a CDA working paper, the maximum benefit of Margalla Avenue cannot be achieved until it is linked to the M-1.
The project comprises a six-lane road facility and aims to provide an alternative route for commuters travelling to Islamabad from GT Road (N-5) and vice versa.