At a meeting of Parliament´s Public Accounts Committee (PAC) held on Sunday to seek updated information on the progress of the 76-km super highway, they cautioned secretaries of the ministries concerned about the possible loss of professional credentials of NA, which has already completed a number of road infrastructures in the past.[break]
Lawmaker Rabindra Adhikari objected to NA move to purchase construction equipment from development budget and subcontracting of track opening works to local people, stating that it would tarnish the image of the national army. The work was originally assigned to the NA by the government.
"It is against the long-held good image and dignity of NA to work as brokers by subcontracting the assigned jobs to local people on higher contract prices," Adhikari said. Adhikari also drew government attention to allegations that NA tried to manipulate the public by showing procurement expenses instead of rentals paid for equipment hired for track opening works.
Another lawmaker Dhana Raj Gurung raised concerns over NA giving petty contracts to people at far higher rates. Lawmaker Lal Babu Pandit sought clarifications from NA on the vast mismatch between actual works-in-progress in track opening and actual cost incurred for the works, so far.
Ramji Sharma, another lawmaker, said NA has violated existing rules by procuring equipment including compressors and drilling machines from the development budget, which is meant for track opening works.
Defense Secretary Madhav Regmi claimed NA, which is tasked with completing track opening works, had procured necessary equipment as per existing Public Procurement Act.
Regmi informed the meeting that NA has so far spent Rs 520 million for track opening works and for procuring necessary equipment, clearing trees, soil filling, tree plantation and administrative cost. Out of the 76-km of the proposed length of the four-lane highway, track for around 42 km has been opened, so far.
Meanwhile, PAC has directed the government on Sunday to furnish details in five days on expenses and the basis of petty contracting by NA.
Existing law obstacle for smooth implementation of fast-track
Tulsi Prasad Sitaula, secretary at the Ministry of Physical Planning and Works, clarified at the meeting that the existing Private Financing in Build and Operation of Infrastructure (PFBOI) Act 2006, which allows only those companies that have experience in similar types of projects costing over US$ 900 under Built Operate Own and Transfer (BOOT) system to be illegible for implementing the fast track project, is the major roadblock in appointing the investors for the multi-billion rupee project.
The PAC had last year directed the MoPPW to ensure at least 10 percent stake of domestic investors in the project irrespective of their experience.
"Process of implementing the fast track would be further delayed given the instruction of the PAC, which is against the existing law. So, we want PAC to give instructions to us on whether to go ahead with the amendment of the PFBOI Act to pave the way for calling Expression of Interest from the investors to implement the fast track," said Sitaula.
Bhesh Raj Sharma, Secretary at the Ministry of Law and Justice, said there is only one option to proceed ahead with the screening of the investors and that is to amend the PFBOI Act if the PAC doesn´t change its instruction.
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