Islamabad - The Punjab Metro Bus Authority (PMBA) has seemed to sideline its federal partner by unilaterally signing a series of services agreements with private firms pertaining to Islamabad section of twin-cities Metro Bus Project.
Recently, the PMBA has signed three different services agreements including automatic fair collection system, security and surveillance system and metro buses operations with three different private firms.
Almost Rs 500 million per annum fair collection system contract of the project has been signed with a firm Inbox.
It is the same firm that is a partner of the laptop scheme with Punjab government.
The firm interactive has been given contract of security and surveillance system. The PMBA will be paying the firm Rs 250 million per annum for this service. Similarly, another contract of buses operation was given to a Turkish firm that is already engaged at Lahore metro bus project.
“Neither the federal government nor the CDA has any idea when these contracts were awarded and process adopted to give them away to private contractors,” said a senior officer of the CDA, while talking to The Nation.
He said that the CDA was of the view that those contracts were given at relatively higher rates.
For example, the officer said, Inbox was given contract of collection of fair from riders and for this service they would be given around Rs 500 million annually.
According to estimates, around 80,000 commuters would daily commute through metro buses and each passenger would be charged Rs 20 for one side trip. Relying on these statistics, the officer said, the firm would collect Rs 584 million annually. While the firm would be given Rs 500 million per annum as services charges, which is not rationalized and depicts poor working on behalf of PMBA.
He said similarly other services contracts were signed on same patron.
It’s worth remembering that citing similar lacunas the CDA recently refused to sign eight-year contract of Operation, Management and Maintenance of Islamabad-Rawalpindi Metro Bus project.
While refusing to sign the contract - mainly pertains to sharing of subsidy amounting to Rs 3 billion on behalf of the federal government - with PMBA, the CDA cited “low revenue v/s high cost operations and maintenance” as core reason.
PMBA - the operator of the Rawalpindi-Islamabad Metro Bus Project - has sent the CDA a draft of agreement to sign it, despite the fact that the CDA has no legal standing to sign it as it had no role in execution or operation of the project.
The CDA noted that within the federal capital, the Islamabad Capital Territory (ICT) administration has the mandate to regulate public transit system and that they could sign such agreements with PMBA.
“Over the issue a high powered committee was also constituted and issue was brought to the notice of the secretary cabinet,” the official said adding federal government’s response is awaited over the issue,” he added.
Ozair Shah, the PMBA Operations general manager, dubbed the apprehensions of the CDA as unrealistic and tantamount to an attempt to derail the smooth working over the project.
“Not only the provincial government but the representatives of the federal government are also taken on board before awarding services contracts,” Shah said.
There were some issues over sharing of proposed subsidy against the project by the CDA but those would be resolved soon, he added. Ozair Shah said that CDA had not been asked to share subsidy out of its accounts but it would be the federal government that allocate funds in its annual budget.