May 11, 2022

NHA Right of Way Rental Rates Revised Up 20% – Pakistan

ISLAMABAD: The National Highways Authority (NHA) Board of Directors has revised the right-of-way (ROW) rental rates upwards by 20% of the existing rates.

NHA Chairman Captain Muhammad Khurram Agha (Retired) chaired the Board of Directors meeting and deliberated on the “review of rental rates for use of the NHA right-of-way for laying /the crossing of utility lines, i.e. (fiber optic cables, gas/water/oil pipelines, drainage/sewer channels and erection of utility poles and power cables, etc.), in the lands of the NHA right-of-way”.

The NHA Board of Directors has approved revising rents and other applicable fees by 20% of existing rates effective March 1, 2022 for the next three years.

For the revision of OFC rental on the basis of CPI (non-food), the existing tariff for the use of the right-of-way per meter per year is Rs 30, which is increased to Rs 36, the tariff for use/crossing of bridges/culverts depending on length up to 30 meters was Rs. 0.1 million which is increased to Rs0.12 million, for 31 to 50 meters the tariff was Rs0.2 million which is increased to Rs0.24 million, for 51 to 100 meters the rate was Rs0.3 million which is increased to Rs0.36 million and for more than 100 meters the rate was 0.5 million, which is increased to 0.6 million rupees.

For the revision of pipeline rental rates based on a 20% increase after three years: up to 12ft diameter (per meter per year) for the highway, it was Rs100 which is increased to Rs120 and on the highways, it was Rs1000 which is increased to Rs1200, for 13′ to 24′ dia the fare for the highways was Rs200 which is increased to Rs240 and on the highways it was Rs2000 which is increased to Rs2400, for 25′ to 36′ dia, the rate was Rs500 for the highway which increased to Rs600 and for the highways it was Rs3000 which rose to Rs3600.

For electric poles and electric cables, etc. (per circuit per meter per year) the tariff was Rs 100 for highways which is raised to Rs 120 and for highways was Rs 1000 which is raised to Rs 1200.

The documents revealed that rents for the use of the right-of-way will initially be paid in advance for 05x years and 03x years for all pipelines/power lines and fiber optic cables respectively thereafter, based on an annual advance. Rates are net of tax, so the prescribed rates for filers and non-filers of all taxes, including withholding tax, will be added by the CNP holder/applicant to have gross NHL charges with tax.

NHA Board of Directors Approved Award of Consulting Services for “Design Review and Construction Supervision Consultants for Asia Regional Economic Cooperation Corridor Development Investment Projects (CAREC) Tranche-II and Tranche-III”.

It was awarded to M/s Minconsult Sdn Bhd (Malaysia) in joint venture with M/s Saman Corporation (Korea); M/s Sheladia Associates Inc (USA); M/s Creative Engineering Consultants (Pakistan); M/s AA Associates (Pvt) Ltd (Pakistan); M/s Asif Ali & Associates (Pvt) Ltd (Pakistan); M/s Associated Consulting Engineers Ltd (Pakistan); and M/s Associated Consultancy Center (Pvt) Ltd (Pakistan), the top ranked consultants in the combined evaluation (technical + financial), at an assessed cost of $2.845 million which includes remuneration, reimbursement, sale on services 15% and income tax on non-residents (three percent).

The Council deliberated on the Sialkot Chamber of Commerce and Industry’s request for a waiver of certain regulatory requirements for access to the NHA’s controlled network for construction and direct access via RAMPS on the Lahore Sialkot Highway (LSM) to Peak Hospital i.e.

Sialkot Medical City Limited (SMCL) Decision “”.

The NHA Board of Directors has not accepted the Sialkot Chamber of Commerce and Industry’s request for access to the NHA’s controlled network for construction and direct access by ramps on the highway Lahore Sialkot (LSM) at Sialkot Medical City Limited (SMCL) not complying with NHA regulations for access from the NHA controlled network.

Copyright Business Recorder, 2022

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