From: Former GM/Head To: Vice President/Head

Structural Engineering Division GT & GE Division

Committee Convenor

Ref: 156/03/TR/01/ Date: September 18, 2017

Enquiry Concerning Contracts of Orange Line Metro Train Project (OLMTP)

Please refer to your memo no. 099-02/DTH-SIW/5655 of September 15, 2017 regarding subject
matter. As desired I am pleased to provide the answers to the questions listed in the memo.

Project History Brief

In April 2014 at the proposal stage former SED Division Head Mr. Raja Tariq Nazir deliberated
the OLMTP with me and Mr. Shaukat Qadeer, (GM Structures) being senior most, for our
opinion regarding the acceptance or refusal of the Orange Line Metro Train Project. Despite of
his insistence to take up the project, we strongly opined against it keeping in view our limited
capacity to handle the project of this scale; We did not had such past experience and the
capabilities of the persons & their relevant experience.

Later on Mr. Raja Tariq Nazir discussed the project with Mr. Salman Hafeez (GM Structures),
who was then working on Nhelum Jhelum Project. They both had a joint meeting with MD and
soon after the meeting Mr. Salman Hafeez was transferred back to Structural Division with
immediate effect from Project Office of the Neelum Jhelum Hydropower and was announced as a
Project Manager for OLMTP. Since then all the meetings and negotiations with PMA were
handled by the former Head, Mr. Raja Tariq Nazir and the Project Manager, Mr. Salman Hafeez
without involving other seniors of the division.

Response of Main Questions a) to d)

I appropriated the charge of Acting Head of Structures Division in September 07, 2015. Before
taking charge following tasks were already concluded.
1) Draft Consultancy Agreement and series of deliberations with PMA
2) Consultancy Fee Rs. 2400 Millions
3) Formation of joint venture with Chinese Consulting Firm M/s CEC
4) Preparation of PC-1, Cost of civil works at tender stage
5) Nomination of M/s CEC Chinese firm to EXIM Bank (without settling fee priorly)

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(In this regard no. of visits of M/s CEC office in China were made by the PM along with
former MD for negotiation purpose)
6) Series of deliberations with M/s CEC on agreement and fee

At that time the project was awarded to the Civil Contractors before the signing of final
agreement with PMA and the execution at site was underway. Mr Salman Hafeez, the Project
Manager along with his already nominated team was handling all the meetings and other issues
independently of the OLMTP in direct liaison with the then MD.

Project Manager and Former Head Raja Tariq Nazir working as Advisor along with their team
negotiated the final Fee and TOR of the agreement with CEC as JV Partner after lot of
deliberations and advice from Ex MD. The agreement was signed by me on September 15, 2017, as
SOP of Nespak, to fulfill the formality, being Head of Division (just after one week of assumption
of charge).

The work on agreement with PMA was initiated since June 2015 as per my knowledge. Series of
meetings were held between Former Head Raja Tariq Nazir along with PM with the Client on
the terms and conditions. One of the most important conditions was the formation of JV with
Chinese Company to fulfill the requirement of the EXIM Bank for loan. Once the agreement
between Nespak and CEC was signed, the PM, Contract Specialist and Contract Engineer
started further deliberations with PMA. Nespak Team consisting of former MD, PM, VP/Head
Contract Division and Contract Specialist finalized the final agreement at PMA office with the
Client with all terms and conditions and remunerations. Later on the agreement was brought to
me on the same day by the PM, duly signed by him with initials on all pages for my signature to
fulfill the formality. On my query, he confirmed that the above team members led by the former
MD has finalized the agreement with PMA and VP/Head Contract will going to sign as witness
to endorse the agreement and undersigned has to sign the agreement immediately. After my
signature agreement was taken back immediately by PM for all others signatures of witness from
Nespak and PMA Chairman and witness from the Client.

Response of Sub Questions

I would like to draw your attention that all the meetings and subsequent decisions pertaining to
the contractual matters, agreements and fee with M/s CEC and PMA were taken by the PM after
getting direct directions from former MD on frequent basis, and I was not involved in activities
listed at Sr. No. a) through c).
(TAHIR UR REHMAN)