CURRENT MARKET SITUATION

Transport system comprises several modes including Roads, Rails, Waterways etc and Communication system includes Post Offices, Courier Services, Wireless, Mobiles and Electronic Media. Transport and Communication are vital for connecting markets and the people. It is extremely difficult to put the economy on the high growth trajectory without an efficient transport and communication system. Investments in country’s infrastructure directly affects economic growth as producers find the best markets for their goods, reducing transportation time and cost and generating employment opportunities. A well established transportation and communicationsystems also have network effects and allow adoption of latest production techniques. The existence of natural resources is the basis of economic development and their efficient utilization is prime objective of the policy makers for sustainable development. An efficient transport system is pivotal to support any kind of economic activity.

ROAD TRANSPORT

Infrastructure is both a cause and a consequence of economic growth. The role of infrastructure in integrating countries into the global economy by providing transport and telecommunicationservices is well known. Infrastructure can also raise the quality of human capital, which is a key factor in achieving high and sustainable levels of growth. Improvements in the quality and quantity of infrastructure have a disproportionately positive impact on the poor, and thus play a vital role in reducing income inequality.An efficient communication system is vital for trade, commerce and national integration.Naturally, Pakistan’s economic development depends on improvement/modernization of itstransport sector. Roads have become the most important segment of transport sector in Pakistan with ever increasing reliance on road transportation. In 1947, reliance on roads wasonly 8 percent, however, the roads now carry over 96 percent of inland freight and 92 percent of passenger traffic and are undoubtedly the backbone of Pakistan’s transport sector/economy.

NATIONAL HIGHWAY AUTHORITY (NHA)The transport sector in general and road infrastructure in particular has profound and enduring effect on the economic growth of Pakistan. NHA is playing well its responsibility for improving the quality of Pakistan’s road network and ultimately improving the quality and standard of life of the masses. Road density is an indicator of prosperity and development level.

Current road density in Pakistan is 0.32 km/km2, which is much less even from regional standard. The government is endeavoring hard to double the road density to 0.64 km/km2. From only around 50,000 km in 1947, Pakistan’s current road network is now more than 260,000 km. This includes NHA network of around 12,000 km, which despite being merely 4 percent of the overall road network takes 80 percent of Pakistan’s commercial traffic.

Devastating flood-2010 caused colossal damages to NHA network throughout Pakistan whichincludes roads, bridges, culverts, retaining walls, causeways, etc. Despite the huge damage & flood intensity, the traffic was restored on war footing for bringing comfort to affected population. A total of 736 km road segments and 48 bridges were damaged. The restoration cost is assessed as Rs 23.5 billion for NHA controlled roads. Based on flood experience, which passed all historical records, the government is now improving design standards on revised hydraulic parameters to enhance safety features to minimize losses of life and property. At present, 65 development projects are ongoing which include roads, river bridges, tunnels,flyovers, interchanges etc. Since Mar-2008, NHA has launched/ awarded 36 development projects covering a length of above 1000 km inclusive of a number of bridges, flyovers & interchanges.

The responsibility for development, operation, maintenance and preservation of the nationalhighway network has been assigned to the National Highway Authority. Its objective is to secure the delivery of an efficient, reliable, safe and environment-friendly national highway network with a view to improving the quality of life in Pakistan.

The Authority plays a major role in all-weather reliability, reduced transportation costs andincreased access to markets for local produce and products, access to new employment centres, employment of local workers on various projects, better access to health care and other social services, as well as strengthening of local economies.

The NHA is currently the custodian of nearly all of Pakistan's major inter-provincial road links called the national highways, including the motorways and strategic roads. This network represents the main transport corridors linking ports to population centers and providing linkages to Afghanistan, the Central Asian Republics, China, Iran and India. These roads comprise of only around 4 percent of Pakistan's total road network but carry 80 percent of the country’s commercial traffic. Consequently, the network is under pressure and its importancefrom a development perspective cannot be over emphasized. The province wise breakup of NHA network is given below:

PROVINCE KM % SHAREPUNJAB 2659 23.16SINDH 1604 13.96

KPK 1651 14.38BALOCHISTAN 4629 40.30

NA & AJK 942 08.20TOTAL 11485 100%

SOURCE NHA

The total NHA network of 11,485 km primarily consists of “low capacity” roads. About 75 percent are 2-lane (6.1m single carriageway), 20 percent are 4-lane divided highways (7.3m dual carriageways) and only 5 percent 6-lane highways (11m dual carriageways). Approximately 25 percent (or 2500 km) of the NHA network is in need of rehabilitation. This results in very lownumber of travel trips, slow speeds and an un-safe driving environment. Commercial traffic running speeds are between 35-45 kph, and average trip speeds are around 25kph; 1/3rd of the average trip speeds in developed countries.

The present highway network is under strain because of rising traffic flow and a slow pace ofincrease in capacity. Consolidation, preservation and improvement of the existing highways areneeded on an urgent basis. A Gradual extension of the network is also equally important to develop remote areas and to better connect major economic and social centers of Pakistan.

OPERATION & MAINTENANCE

The NHA is giving special emphasis to the preservation of the existing highway infrastructure and on highway safety. Its endeavors to operate and maintain the network in a safe condition at an optimum cost while ensuring user satisfaction is limited by immense traffic and insufficient resources to meet the growing needs of the sector. Since O&M activities are dependent on toll, special attention is being accorded to enhance the efficiency of tolling systems and revenue management through installation of Electronic Toll and Traffic Management Systems (ETTMS) under a phased program.

Providing adequate capacity is one of the key aims of the NHA presently. Pakistan’s primary traffic movements are concentrated along the Karachi-Lahore-Islamabad-Peshawar links which serves domestic needs. This also links Punjab and the northern parts of the country with ports and commercial hubs in the south. The main artery along this corridor is the 1819 km long N-5 which serves 80% of Pakistan’s urban population and carries over 65% of intercity traffic. The other main corridor is the Indus Highway (N-55). N-5 is an access-free, 4-lane divided facility with a capacity of 66,000 Passenger Car Units (PCUs). The current traffic volumes range from 7,000 to 40,000 vehicles per day which is 35% to 93% of existing capacity. Presently, 50% length of N-5 is in poor condition. Karachi - Lahore (1260 km) travel time is 48 hours and Karachi – Peshawar (1700 km) is 72 hours. Moreover, the average commercial operating speed is only 23 to 26 kph. The Government’s goal of sustaining 7-8% economic growth would double traffic demand by 2017 but the N-5 will not be able to support this projected transport demand.The NHA’s portfolio cost is Rs 705.48 billion with a “throw-forward” of Rs 570.84 billion. The ratio of throw-forward to annual allocation is 31, meaning that at current funding level of Rs 29billion; approximately three years are needed to complete the ongoing portfolio. Due to limitedfiscal space and an increase in yearly allocation being rather unlikely, NHA is looking towards new and innovative methods of financing.

INITIATIVES AND FUTURE OUTLOOK The Government of Pakistan has planned 50 mega projects for provision of better quality highways, expressways & motorways throughout the country during the next few years. Some of the planned initiatives include: construction of major new motorways, modernization of trucking fleet with newer, more efficient, and environment friendly vehicles;promotion of industrial clusters along highways/motorways, establishment of warehouses by the private sector along the network. NHA is also implementing a major National HighwayImprovement Program (NHIP) in phases at a cost of Rs 20.25 billion. Out of a total length of 836 km to be reconstructed / rehabilitated, work on 380 km has been completed. Out of the balance, 268 km shall be completed by Dec 2008 & the remaining 188 km by Jun 2009. Program includes reconstruction and upgradation of Lahore - Gujranwala Section from 4 to 6 lanes. A complete list of on-going and future projects is given in the tables below.

S.No. Project Length (KM)1. Improvement/Widening of KKH (Khunjerab-Raikot Section) 3352. Realignment of KKH (Raikot-Sazin Section) 1203. Improvement/Widening of KKH (Sazin-Manshera Section) 2584. Manshera-Abbottabad-Hasanabdal Expressway 975. Peshawar-Torkhum 516. Peshawar Northern Bypass 347. Underpass at Wah Gate No.1, Taxila-Hasanabdal Section -8. Wazirabad-Pindi Bhattian Expressway (E-3) 1009. Hiran Minar Interchange (M-2) with link road -10. Faisalabad-Khanewal Expressway (E-4) 18411. Khanewal-Lodhran Expressway 10012. Lodhran-Sukkur Expressway 38513. Ratodera-Sehwan (N-55), ACW 20014. Karachi-Hub-Dureji-Dadu Motorway (M-7) 27015. Karachi-Hyderabad Motorway (M-9) 13616. Jand-Kohat Notional Highway (N-80) 4617. Noshki-Dalbadin Section (N-40), Balochistan 16518. Gujranwala-Dina Expressway 10019. Chakdara-Dir, Kalkatak-Chitral (N-45) 12020. 4 Bridges over River Indus in Punjab & Sindh -

Source: NHA

The National Highway Authority plays a vital role in the efficiency and productivity of Pakistan’stransportation sector. In order for the country to reap the benefits of a truly efficient road network, efforts must be made to maintain the existing network in optimal condition. An increase in the network is required to facilitate the increase in traffic and movement of goods in the future. Innovative methods of financing, private sector participation, and environmental aspects must be taken into consideration while adding to the existing network.

SWOT ANALYSIS

STRENGTHS

NHA is having a monopoly in construction and development of highways and motorways of Pakistan.

The working environment for employees at NHA is much better than most of the other public sector organizations.

NHA has a strong commitment and a relationship of trust with the leading contractors like NLC, FWO etc.

Sources of revenues are huge in number for NHA like through Toll Taxes, Restaurant Rents, Advertising Fees, Police fine etc.

NHA is having in-house computerized GL software which is being operated successfully on entire organization and creating a platform for the unified data storage and retrieving.

Despite resources constraints NHA has successfully completed several mega projects. The building of NHA Head Office is beautiful master piece and contains all of the modern

facilities in it. NHA is having a road network of only 4.4% of Pakistan’s total road network but carries

80% of the country’s overall commercial traffic and thus is the backbone of the economic stability and progress of Pakistan.

NHA is having a strong support from Ministries of Communications and Finance. Free pick and drop services are available for employees.

WEAKNESSES

Rilance on Government for funding. Project magnitudes are quite large short fall of resources can b faced. Favoritism practices are common amongst the entire organization. Corruption cases incurred by employees at different levels of the organization. Lack of punctuality amongst the NHA employees. There is no visible evidence of successful leadership in the organization. Leg pulling of colleagues is a common practice. Files and records of old projects are placed roughly in the godown, without any proper

mechanism.

OPPORTUNITIES

NHA can help in increasing the FDI of Pakistan by attracting more foreign contractors to start their operations in Pakistan.

NHA can convert its Trainees (who are young and talented) from contract employees to permanent employees.

Awareness through a strong advertising campaign should be created amongst the people to protect the plants and trees besides the roads and follow the rules and regulations of the roads.

THREATS

Increased terrorism and blasts can destroy the completed and in-progress projects. Monopoly of NHA can be affected if government allows other authorities to start the

operations related to construction of roads and communication means. Natural disasters like earth quakes, floods can destroy the highways and motorways and

can require huge costs for reconstructions.

BRAND ANALYSIS

MISSION STATEMENT

To secure delivery of efficient, reliable, safe and environment friendly National Highway network with the view to improve quality of life in Pakistan.

MAJOR ACTIVITIES

Construction, Maintenance, Improvement and Operation of National Highways and Motorway Network of Pakistan

CORE WINGS

Planning Operation Construction Motorways Finance and; Administration

HEAD OFFICE

NHA HQ, Islamabad

REGIONAL OFFICES

Lahore Multan Karachi Peshawar Quetta Abbottabad

BACKGROUND

In 1978, Government of Pakistan (GoP) decided to federalize five important inter-provincial roads named ” National Highways” and created the National Highway Board for monitoring the development and maintenance of these federalized roads by provincial Highway Departments.

The National Highway Authority (NHA) was created, in 1991, through an Act of the Parliament, for planning, development, operation, repair and maintenance of National Highways and Strategic Roads specially entrusted to NHA by the Federal Government or by a Provincial Government or other authority concerned. Total length of the federalized roads under NHA now stands at 8780 KMs, account for 3% of the entire road network and 75% of the commercial road traffic in the country.

NHA is custodian of the Highway assets of Pakistan’s road network. It is committed to provide a safe, modern and efficient transportation system. As the cornerstone of tomorrow’s Highway network, National Highways function as the backbone of Pakistan’s transportation system, play an important role in the development of micro and macro economy and also enhance the national integration by increasing the social and economic dependence between the Provinces.

RESPONSIBILITIES OF NHA

POWERS & DUTIES OF NHA

Advise the Federal Government on matters relating to National Highways and Strategic Roads.

Frame a scheme or schemes for matters such as construction, expansion, operation and development of National Highways and Strategic Roads and undertake work/incur expenditure on such scheme(s).

Acquire any land in accordance with legal procedure and obtain and dispose of moveable and immovable property of interests therein.

Research and development in the field of Highways. Procure plant, machinery, instruments and materials required for its use. Enter into and perform all such contracts as it may consider necessary. Levy, collect or cause to be collected tolls on National Highways, Strategic Roads and

such other roads as may be entrusted to it and bridges thereon. License facilities on roads under its control on such terms as it deems fit. Determine a building line between which and the RoW it shall not be lawful without the

consent of the Authority to construct or maintain any structure or make any excavation. Cause studies, surveys, experiments and technical researches to be made or contribute

towards the cost of such studies, surveys, experiments or technical researches made by any other agency.

NATIONAL HIGHWAY COUNCIL

The basic function of the National Highway Council (NHC) is to lay down national policies and guidelines to be followed by NHA in the performance of its functions. The Council has the power to direct and regulate the affairs of NHA.

COMPOSITION

The NHC was previously headed by the Prime Minister of Pakistan. In July 2001, the provisions of the NHA Act, 1991 were amended by the GoP and the NHC was re-constituted. The revised composition of the NHC is as given below:-

The Minister for Communications, Government of Pakistan PRESIDENT

The Secretary Finance Division, Government of Pakistan MEMBER

The Secretary Planning & Development Division, Government of Pakistan MEMBER

The Secretary Communications, Government of Pakistan MEMBER

A Professional in the field of Highway Construction and Management (nominated by the President)

MEMBER

A Professional in the field of Finance & Accounts (nominated by the President)

MEMBER

The Chairman NHA MEMBER/SECRETARY

FUNCTIONS OF HIGHWAY COUNCIL

To approve five year plans and perspective plans, prepared by the board in consultation with the planning & Development Division, for the construction, development, repair & maintenance of National Highways & Strategic Roads specially entrusted to the Authority by the Federal Government or by Provincial Government or other Authority concerned.

To consider progress reports of the Authority. To lay down national policies and guidelines to be followed by the Authority in the

performance of its functions To review and reappraise projects To approve the annual budget of the Authority

NHA EXECUTIVE BOARD

The general direction and administration of NHA and its affairs vest in the Executive Board which may exercise all powers, perform all functions and do all acts and things which may be exercised, performed or done by the Authority.

The Chairman NHA Inspector General, National Highways & Pakistan Motorway Police (or nominee) Additional Secretary Finance Member or Additional Secretary, (Planning & Development Division) Joint Secretary-II, Ministry of Communications Senior Chief, NTRC Vice President, NESPAK Member(Finance), NHA Member(Planning), NHA

FUNCTIONS OF EXECUTIVE BOARD

To consider and approve proposals, schemes and projects exceeding fifty million rupees but not exceeding one hundred million rupees and to consider and recommend, through the Ministry, to CDWP or ECNEC proposals, schemes and projects exceeding one hundred million rupees.

To consider progress reports of the Authority. To perform such other functions as may be delegated to it by the NHC. To recommend for approval the annual budget of the Authority. To approve projects to be funded through toll and other receipts from operation of

Highways.

FUNCTIONAL SETUP

Wings / Sections Headed ByPlanning Wing Member

Planning Section GM (Planning)Procurement & Contract Admn Section GM (P&CA)

Design Section GM (Design)BOT Section GM (BOT)BOT Section Director (Private Sector Projects)Legal Bureau Director (Legal)

Operation Wing MemberOperation GM (OPERATIONS)

MPO GM (MPO)EALS GM (EALS)

Construction Wing MemberConstruction GM (Constructions)

Projects GM ( Projects)

Aieded Projects MemberAsian Development Bank GM (ADB)

NHIP GM (NHIP)NEP GM (NEP)

Motorways MemberMotorways GM (Motorways)

Finance Wing MemberFinance Section GM (Finance)

Budget & Account GM (B&A)Revenue GM (Revenue)

Wings / Sections Headed ByAdministration Wing Member

Admin GM (Admin)Establishment GM (Establishment)Coordination GM (Cordination)

Personnel Director(Personnel)HRD Director (HRD)

Computer Bureau Director (MIS)Public Relations Director (PR)

Secretary Section Secretary (NHA)

Internal Audit Section GM (IA)

Vigilance Section Director (Vigilance)

PODUCT / SERVICE MIX

General Specifications have been produced for National Highway Authority, keeping in consideration that following types of activities are being carriedout in this organization:

i) Construction of Motorways, new Highways, Bridges and allied works.ii) Rehabilitation and Improvement of existing road network.iii) Maintenance of existing roads and structures.

MOTORWAYS OF PAKISTAN

Route Details Punjab Sindh NWFP Balochistan N. Area AJK Total

M-1 Islamabad-Peshawar 67 - 88 - - - 155

M-2 Lahore-Islamabad 367 - - - - - 367

M-3 Pindi Bhattian-Faisalabad 53 - - - - - 53

M-7 Dadu-Dureji-Hub - 132 - 138 - - 270

M-8 Gwadar-Hoshab Section - - - 892 - - 892

M-9 Karachi-Hyderabad - 136 - - - - 136

M-10 Karachi Northern Bypass - 57 - - - - 57

Total 487 325 88 1030 - - 1930

%age wise 25.23 16.83 4.55 53.36 - - -

 

NATIONAL HIGHWAYS OF PAKISTAN

Route Details Punjab Sindh NWFP Balochistan N. Area AJK Total

N-5 Karachi-Peshawar-Torkham 1021 671 127 - - - 1819

N-10 Liari-Gwadar-Gabd (Makran Coastal Highway)

- - - 653 - - 653

N-15 Mansehra-Naran-Jalkhad-Chilas

- - 175 - 65 - 240

N-25 Karachi-Bela-Khuzdar-Kalat-Quetta-Chaman

- 23 - 790 - - 813

N-30 Basima-Khuzdar - - - 110 - - 110

N-35 Hassanabdal-Abbottabad-Thakot-Gilgit-Khunjerab (KKH)

15 - 176 - 615 - 806

N-40 Lakpass (near Quetta)-Dalbandin-Taftan

- - - 610 - - 610

N-45 Nowshera-Dir-Chitral - - 309 - - - 309

N-50 D.I.Khan - Zhob- Kuchlack (near Quetta)

- - 143 388 - - 531

N-55 Kotri-Shikarpur-D.G.Khan-D.I.Khan-Kohat-Peshawar (Indus Highway)

373 495 396 - - - 1264

N-65 Sukkur-Sibi-Saryab (Quetta) - 90 - 295 - - 385

N-70 Multan - D.G.Khan - Loralai - Qila Saifullah

181 - - 266 - - 447

N-75 Islamabad Satra Mile-Lower Topa-Kohala

90 - - - - - 90

N-80 Tarnol(Rawalpindi)-Fateh Jang-Khushalgarh-Kohat

108 - 38 - - - 146

N-85 Hoshab-Pangjur-Nag-Basima-Surab

- - - 487 - - 487

N-90 Kwazakhela-Alpuri-Besham - - 64 - - - 64

N-95 Chakdara-Mingora-Manglour-Kwazakhela-Madyan-Bahrain-Kalam

- - 135 - - - 135

S-1 KKH (Gilgit)-Skardu Road - - - - 167 - 167

S-2 Kohala Muzafarabad Road - - - - - 40 40

S-3 Muzaffarabad-Chakothi - - - - - 55 55

E-3 Wazirabad-Pindi Bhattian 100 - - - - - 100

E-4 Faisalabad-Khanewal 184 - - - - - 184

E-5 Khanewal-Lodhran Section (100 km)

100 - - - - - 100

Total 2172 1279 1563 3599 847 95 9555

%age wise 22.73 13.38 16.35 37.66 8.86 0.99

 

MOTORWAYS OF PAKISTANPakistan Motorway Project is originally conceived by Mr. Muhammad Nawaz Sharif, Prime Minister of Pakistan, to provide a country wide link of limited access high speed highway to bring most parts of the country together which could result in greater economic growth, commercial activity and trade with ECO countries. It is envisaged that such a system of modern roads would enable Pakistan to step into the 21st century equipped with a first rate communication system. The Motorways of Pakistan are a network of high quality, international standard 'limited access' highways in Pakistan, which are maintained and operated by the National Highway Authority. Pakistan's motorways are either six-lanes or four-lanes and are 'limited-access' with a minimum speed limit of 80 km/h and a maximum speed limit of 120 km/h. They have a central median and are fenced on the outside for safety and to prevent unauthorized access. In 2009, operational motorways in Pakistan had a combined length of 770 km.

VISION STATEMENTThe vision of the motorway project is to provide a transportation system that allows anyone to go anywhere in the region easily and efficiently.

MISSION STATEMENTThe mission of the motorway project is to provide the public with a safe and efficient countywide transportation system. The system increases access and mobility, reduces congestion, improves the environment, and supports economic development, there by enhancing quality of life.

INTRODUCTION TO M2 MOTORWAY (PAKISTAN)The M-2 is a motorway in the Punjab province of Pakistan. It is 367 km long and connects Lahore with Islamabad. It passes through Kala Shah Kaku, Sheikhupura, Khanqah Dogran, Kot Sarwar, Pindi Bhattian, Salem, Lilla, Kot Momin, Kallar Kahar, Balksar, and Chakri before ending just outside the twin cities Rawalpindi and Islamabad. It then continues on to eventually become the M1 motorway linking the twin cities with Peshawar. The M-2 crosses the junction of the M3 (to Faisalabad) at Pindi Bhattian. It is part of Pakistan's Motorway Network. Chaudhary Ghias Mela recently inaugurated the sial more interchange which exits at sial more and provides an alternate route to Sargodha.One of the most expensive motorways in Asia, it has the highest pillared-bridge in Asia (at the Khewra Salt Range)

The most interesting fact is that it can be used by Pakistan Air Force to land or take off many Fighter Jets.

ROUTE

The M-2 starts to the west of Lahore, at the Thokar Niaz Baig junction of N-5 (National Highway No. 5). Once it crosses the Ravi River, it diverges from the N-5 (also known as GT or Grand Trunk Road) and heads west towards Sheikhupura. After passing the Sheikhupura Interchange Khanqah Dogran Interchange comes at a distance of 36 km from the Sheikhupura Interchange. After once at Pindi Bhattian, it crosses the M3 junction and turns north-west. It continues all the way to Kallar Kahar, where it enters the Salt Ranges. Once past the Salt Ranges, the M-2 turns north and ends just west of Rawalpindi at the junction between the Islamabad Link Road and the M1. The whole stretch of the M-2 consists of 6 lanes, and there are a number of rest areas along the route, with washroom and eating facilities.

HISTORY

The M-2 was conceived by Prime Minister Nawaz Sharif in his first term (1990–1993) and later inaugurated on November 26, 1997, during his second term. In late 2006, upgrades were made to the portion of the M-2 passing through the Salt Ranges due to increasing complaints of drivers. The upgrades included better marking of the road lines and increased size of road signs for easy visibility.

FUEL STATIONS

Sukheki (CNG is also available here) Sial morr (CNG is available 4 kilometer away off the interchange) Saalam Bhera (CNG is also available here) Kalar Kahar (CNG is also available here) Chakri (CNG is also available here) hafizabad Kot momin CNG also provides and refreshment place for outsiders.

Sunday is the only day when CNG remains available throughout this route.

JUNCTIONS & INTERCHANGES

M-2 Motorway

Westbound exits Junction Eastbound exits

1906 Lahore Link Road to Kala Shah Kaku and N-5

To Sheikhupura and Shahkot

1919 To Gujranwala and N-5

M3 to Faisalabad 1932 To Khanqah Dogran and N-5

To Kot Momin and Sargodha

1943 To Phalla, Gujrat and N-5

To Salam and Bhalwal 1965 To Rasul, Kharian and N-5

To Lilla and Khushab 1980 To Pind Dadan, Jhelum and N-5

To Talagang and Khushab 2007 To Kallar Kahar, Chakwal, Sohawa and N-5

To Balkassar 2021 To Mandra and N-5Pakistan

To Pindi Gheb 2043 To Chakri and N-5

Airport Link Road 2056 To Islamabad Link Road

COST OF THE PROJECT

It was a massive project involving 3 major river bridges, 8 interchanges, 27 flyovers, 17 bridges on canal, 39 bridges on drains and 4 overhead railway crossing, 183 subways and cattle creeps, 22 culverts on canals and 73 culverts on drains. The project was approved by the National Highway Council headed by the Prime minister of Pakistan in 1992 with 60 percent financing by the Government of Pakistan and 40 percent financing through foreign loans. The project was completed in December 1997 at an estimated cost of Rs.30.5 billion

PRICE ANALYSIS

THE ROAD MAINTENANCE ACCOUNT/FUND

The National Highway Authority Act 1991, as amended in 2001, empowers NHA to benefit from the commercial use of roads and bridges entrusted to it. Under the Act, NHA is empowered to collect tolls on national highways. The Act also grants NHA the power to collect revenues from several other designated sources. Revenues collected from such sources are deposited into Pakistan’s dedicated Road Maintenance Account (RMA). The Road Maintenance Account was established to ensure a stable and secure source of maintenance and operations funding. NHA has framed rules for the RMA known as National Highways and Strategic Roads Maintenance Fund Account Regulations-2002.The RMA’s standard operating procedures describe inter-alias, maintenance categories, and utilization of RMA money. However, funds from the federal Public Sector Development Program may also be obtained in the case of major rehabilitation and improvements and if such funds are available. NHA has commenced implementation of the fee-for-use concept on national highways and strategic roads under its jurisdiction. Tolls are being collected from road users on almost all major highways. NHA collects tolls directly or enters into a contract with an outside party (selected mostly through competitive bidding) for that purpose. If NHA collects tolls directly, all receipts are deposited on a weekly basis in a RMA revenue sub-account for the region from which they were collected. The regional general manager ensures the transfer of all toll money from the regional RMA revenue sub-account to the central RMA account within seven days of the beginning of every calendar month. In cases of collection through outside parties, the revenue transfer is made according to the contract signed between NHA and the concerned party. The operations and management unit of NHA ensures effective monitoring in both cases. The statement of receipts into RMA is prepared every month. The monthly statement includes a performance report containing a comparison with projected receipts and suggestions for improvement, if any. Twice a year, on the 10th of January and July, a consolidated account statement is made available to all the members and the Chairman of the Executive Board for budgeting purposes. Central and regional RMAs are reconciled on a regular basis. NHA has established tolling stations collecting tolls on almost all national highways and has started charging for the commercial use of right of way by collecting ground/approach rental charges. The policy guidelines for tolls and charges for the commercial use of right-of-way were approved by the NHA Executive Board as an interim measure until the final approval is made. The Board has constituted a committee to finalize the policy for tolling and preservation/commercial use of right-of-way. It is expected that the total revenue generated for maintenance works in the financial year 2005-06 will be about PRs 4,310 million. The estimated funding requirement, determined through Highway Development and Management (HDM-IV) analysis, for the year will be PRs 7,000 million. Available total resources from different sources are expected to be as follows:

Revenue receipts through RMA from all designated sources, PRs 4,730 million Government grants for maintenance, PRs 1,200 million Total resources vailable, PRs 5,930 Shortfall, PRs 1,070 million9

Toll revenue is the primary contributor of RMA resources. The contributions of different sources into RMA are as follows:

Toll plazas : 92.0 per cent Weigh stations : 1.5 per cent Right-of-way commercialization : 1.2 per cent Hoardings/billboards : 0.3 per cent Police fine collection etc. : 5.0 per cent

The expenditures form the RMA cover the following maintenance categories:

Routine, periodic and emergency maintenance Rehabilitation Geometric improvement and highway safety improvement New toll plazas and weigh stations Corridor management

Government of Pakistan (GOP) provides funds to National Highway Authority (NHA) through PSDP in the form of Cash Deposit Loan (CDL) to undertake development of road infrastructure in the country. NHA revenue, i.e. Road Maintenance Account (RMA) and GOP grant from Non-Development Budget combine to address maintenance needs of the NHA road network.

Toll Rates for Motorways:

Toll Rates are divided according to vehcile type. Different catagorization is as follows:

CARS / JEEP Pajero/ and all types of Suzuki Van/Pick up and equivalent.

WAGONS (UPTO 12 SEATS) Pick up all types modified to carry passengers (Toyota Hilux

single/ double Cabin), Milk TrucksT-3000 and equivalent.

13-24 seats, Coaster and Mini Bus built on T-3500 Mazda Chassis (upto 24 seats) and

Mini Truck / Tanker built on T-3500 Mazda

BUSES 50 TO 60 SEATS including Buses Greater than 25 Seats

RIGID TRUCKS including 2 axle and 3 axle trucks

ARTICULATED TRUCKS including Articulated Vehicles

PROMOTION ANALYSIS

ENVIRONMENT AND NHAThe process of economic growth cannot be sustained without concomitant of making efforts not only to expand the present facilities but also to modernize them to keep up with the growing needs of the economy.

The National Highway Authority (NHA) under the Federal Ministry of Communications is responsible for the 7000kms long National Highway Network and Motorway systems, which carries 75% to 80% of the total commercial traffic. Provincial Highway departments are responsible for about 80,000 Km provincial road networks. The remaining network comprises of municipal and district roads. NHA'S main artery is the 1760-km long N-5 highway, which carries over 55% of the country's Inter- City traffic. Other National Highways include N-55 (Indus Highway), N-25, N-65, N-40 (RCD Highway) N-45, N-50, N-70 and N-35 (Karakoram Highway). It is noted that nearly two-thirds of the network is in poor condition. The highway department faces premature collapse due to the inadequate maintenance. Reliance on budgetary transfer mechanism for adequately funding road maintenance has not worked, particularly in the periods of fiscal stringency. This increase in vehicle overloading and the shift from rail to road has led to a rapid and premature deterioration of the road network. In view of the increasing magnitude of road transport in Pakistan and the lack of adequate maintenance, rehabilitation, and renovation, the road system often faces a premature collapse.

NATIONAL HIGHWAY IMPROVEMENT PROGRAM (NHIP)In order to assess the existing condition of the NHA network National highway improvement program is started to address the increasing degradation of Pakistan's national highway system. This program is divided into three groups over a period of ten years. Group I is divide into two phases. As part of this program in Group-I 11 selected sections of N-5 and a 48 km section of Karachi- Hyderabad super Highway (M9) will be upgraded. The improvement of highways includes the rehabilitation and maintenance projects involve major reconstruction work, including the construction of additional carriageways, substantial earthworks, extensive drainage provision and intersection remodeling

ENVIRONMENTAL ASSESSMENT

For national highway improvement program NHA with the assistance of World Bank is carrying out the detail sectoral, social and Environmental assessment.

Following are the main objective of the sectoral Environmental social assessment study

It serves as an Environmental and social screening for the project covering the entire national highway network, classified each road corridor as either high medium or low levels of impact, provide sectoral plans for elimination, minimization and mitigation as well as monitoring the negative impacts that would occur generally as a result of the road rehabilitation and construction activities as well as due to future operation of the road corridors

Detailed sub-project level Environmental and social assessments/analysis of the project is useful as to

Ensure that design decisions for the proposed highway improvement options are Environmentally and socially sound and contribute to development Environmental assets

In cases of involuntary resettlement, satisfactory relocation and restoration of incomes and other resources be completed before civil works are undertaken on particular stretches of road

Undertake consultation and participation, including workshops among various stakeholders including local communities and potentially affected groups of people. This process is conducted jointly for social and Environmental assessments

OBJECTIVES OF SOCIAL ASSESSMENT

The social assessment was carried out in order to develop appropriate mitigation plans. These guidelines are required

Identify stakeholders and impacts on indigenous people

Identify poor and vulnerable groups, and strategies to ensure that such groups benefit from the project

Ensure adequate stakeholder consultation and participation.

Stakeholder identification is carried out to ascertain which groups of people are affected by the project, and the extent of that impact, based on their proximity to the corridor.(typical shops along the project corridor)

KEY ENVIRONMENTAL ISSUES

The key Environmental issues associated with the proposed highway project are as Follows:

Resettling of squatters and vulnerable encroachers presently operating business within the proposed construction limit of the project corridor

Appropriately locating temporary construction camps, asphalt plants and waste disposal sites and the Environmental impact of operating these facilities

Borrowing of earth-fill and soil erosion

Impact of noise generated by vehicles, plants and equipment during construction and operation.

Minimizing the impacts on cultural sites or structures and community-owned assets during construction and operation.

Ensuring pedestrian and traffic safety during construction and operation

Relocation of squatters from within the proposed construction limit.

BASIC ENVIRONMENT AND SOCIAL BASELINE PARAMETERS USED FOR ASSESSMENT IN (NHIP)

Physical Environment

Ambient Air Quality

Noise Levels

Biological Environment

Socioeconomic Environment

Encroachments and Building Structures Within the Row

ENVIRONMENTAL IMPACT ASSESSMENT AND MITIGATION MEASURES

Borrow Pit Management and Topsoil Conservation

Location and Management of Project Facilities

Enhancement and Maintenance of Avenue Plantation

Obstruction of Corridor Drainage System

Impact on Cultural and Community-Owned Assets.

Pedestrian and Traffic Safety

Environmental Management Plan & monitoring

DISTRIBUTION CHANNELS

National Highway Authority (NHA) is currently responsible for National Highways, Motorways and Strategic Roads. Length of the road network under the jurisdiction of NHA is approximately 9,000 km and comprises primarily of strategic and principal arterial routes that serve inter-provincial long distance traffic, including important commercial cities and major freight terminals. Though, the length of National Highways is only 3.3% of the entire road network of the country but they carry more than 80% of the country's traffic. Pakistan’s national road transportation system mainly depends on north-south links because; the ports are in the south whereas the populous provinces of Punjab and NWFP are in the north. The two existing major north-south links are the Indus Highway (N-55) on the western bank of the Indus River and the G.T. Road (N-5) on the eastern bank. The bulk of Pakistan’s commercial and industrial activity is concentrated along the N-5 corridor.

NHA follow the rules provided by PAKISTAN ENGINEERING COUNCIL and PUBLIC PROCUREMENT REGULATORY AUTHORITY while awarding contracts. NHA officials sit together and put up a detailed report regarding the deficienices found in the procedure of contracting out the projects so that the system is streamlined.

Potential Contractors of NHA are:

FRONTIER WORKS ORGANIZATION

Frontier Works Organisation (FWO), today’s most versatile and vibrant construction frm, was established on 31 October 1966 to wrought a miracle and carve out a modern highway, the Karakoram Highway, across crags and crevices of the highest mountain ranges of the world. It was towards the completion stage of KKH that the Government analysed the tremendous potential of FWO in carrying out civil engineering projects in diffcult and inhospitable areas and decided not only to keep FWO in existence, but also to expand its tentacles throughout the country.For the last 45 years FWO has left its imprints, bringing prosperity to utterly backward and forgotten areas from the sun burnt plateaus of Baluchistan to lush green dales of Swat and Chitral and from the deserts of Sindh to snow capped Siachin. Over these years FWO has worked in diversified fields to include development of communication infrastructure like construction of roads, railway lines and airfields; irrigation like construction of dams, canals and barrages; power projects like thermal and hydal; tunnelling and mining; telecommunication; construction of residential and industrial infrastructure and proved its unmatched qualitative and quantitative capabilities

HABIB CONSTRUCTION SERVICES (PVT) LTD

Habib Construction Services (Pvt.) Ltd. is an entrepreneur in the field of construction, comprising engineering and construction professionals. The valuable resource of technical manpower of HCS is gradually becoming a brand name for executing fast track work with quality. The reputation of performing the job in time is helping HCS in achieving the confidence of its valuable clients i.e. Communication and Works Department (Government of Punjab), NLC (National Logistics Cell), CAA (Civil Aviation Authority) etc. The consultant M/s NESPAK beside others is also witnessing & endorsing the technical skill of HCS exhibited by its staff during construction works on Lahore Ring Road Projects, where NESPAK has been solely monitoring the construction as design & supervision consultant. Eversince its formation, HCS has executed a number of infra-structure development works of Government of Punjab which included the construction of roads, bridges & underpasses.

While the client is C & W (Communication & Works) Department, main contractor is NLC and NESPAK is the consultant, HCS has achieved another milestone in the shape of completing the construction of Flyover Bridges at Kalma Chowk crossing, right in the heart of the city in a record time in the history of construction. It has added feather in the cap of M/s Habib Construction Services Pvt. Ltd. These days another fast track project i.e. Construction of Flyover along Ferozepur Road at Canal / Wahdat Road Junction is under execution. The C & W Department in the role of client is appreciative of the progress of work. The consultant M/s NESPAK is supervising the work of HCS with their entire satisfaction and appreciation for quality work. The authorities after observing the completion of Kalma Chowk Flyover in record time and unmatchable progress of Construction of Flyover along Ferozepur Road at Canal/Wahdat Road Junction has awarded the project of Widening / Improvement of Canal Bank Road, From Mall Road to Doctors Hospital Underpass to be completed without causing any inconvenience and hindrance to road users. M/s Habib Construction Services Pvt. Ltd. is upholding desire of the employer. The C & W Department has also pre-qualified HCS for their upcoming projects. These projects comprise the rehabilitation of roads & bridges in different parts of Punjab.

The recently completed Lahore Ring Road sections in association with M/s National Logistics Cell (NLC) have all been completed in time, which has been appreciated by the Chief Minister Punjab. The Government of Punjab has also expressed their satisfaction for HCS’ overall performance. National Logistics Cell (NLC) has also acknowledged the potential of HCS and kept HCS associated with them for the execution of various packages of Lahore Ring Road Project.

HCS is equally experienced in Airfield & Airport construction activities. The same dedicated team had completed the Sialkot Airport, funded by private owners of industrial estates of Sialkot. It has been operational for last three years, quality of which had never been questioned by Civil Aviation Authority. Recently the certain extensions have been carried out at Sialkot Airport. The execution of Airside works at New Benazir Bhutto International Airport Islamabad is another achievement for HCS. The client Civil Aviation Authority CAA is satisfied with the quality of work.HCS has been enlisted with a number of Government Departments including National Highway Authority (NHA) and is planning to undertake major road projects in near future.HCS is proud to achieve these goals and targets under the dynamic leadership of "Shahid Saleem" who is widely known as a leading civil contractor in Pakistan. The devoted hard work helped HCS to get qualified for inclusion in the list of, "NO LIMIT CONTRACTORS" in Pakistan, comparatively in a much lesser time.

GHULAM RASOOL & COMPANY (PVT) LIMITED

GRC was founded over three decades ago in 1970 and the company was incorporated as Private Limited in 1984. GRC is a leading provider of Highend Engineering, Procurement & Construction services. With over 5 decades of experience in civil engineering we have a long and proud track record of applying innovative solution to the development and management of high-quality, construction projects.

GRC the absolute source of Engineering, Procurement & Construction Provides you:

Quality Solutions Superior Engineering State-of-the-art Execution Utmost in Responsiveness

With the Vision as "To be a state-of-the-art organization in the Construction industry.", GRC holds the following Mission:

Professional performance creating value for our clients Quality Solutions A company-wide commitment to a safe work environment Highest ethical business practices

KNK (PVT) LIMITED

KNK (Pvt) Ltd. is one of the premier and leading engineering and construction companies of Pakistan. It has the privilege of working on different projects of Asian Development Bank, USAID, UNOPS, World Bank, Ministry of Communication, WAPDA, Ministry of Housing, Provincial Governments, Saudi Arabia, Sudan and Afghanistan. KNK fully understands the norms and clear criteria of performance through experience working under such esteemed and renowned institutions. KNK enjoys an accumulative engineering and construction experience of over 18 years.

Infrastructure Development has always been one of the main areas around which KNK has built its growth. The number and diversity of contracts won by KNK since its inception demonstrates the quality of the company’s offering. In our engineering & construction business lines innovation and the commitment of our teams enables us to provide customers with solutions that are closely tailored to the challenges they face.

The hallmark of our success has been our ability to combine world-class expertise from a variety of disciplines, and it is this synergy of expertise that places us ahead of others. In a natural progression to a higher level of service, we are now integrating expertise and capabilities from our indigenous and international joint venture companies to deliver complete satisfaction to our clients.