py gare USE eT CTA TAT Gemmon n (cer citar, wg fee ke eran Hea) Bem iron. svat 2san2g0r ¢ 290095"4 National Highways Authority of India See 7! ae (Ministry of Shipping, Road Transport and Highways) og va 8, BETO, arc, of Reeh-110 075 6-5 &6, Sector-10, Owarka, New Delhi-110075 No. 11041/217/2007-Admn Dated: 19" December 2008 POLICY MATTERS: ADMINISTRATION / FINANCE (42/2008) (Decision taken on File No. NHAI/Legal (DRBy/Arbitration/01/08) Sub: Need for ensuring uniformity of guidelines and procedures for dealing with various issues ~ Constitution of Committee In view of the need for ensuring uniformity of guidelines and procedures for dealing with various issues in respect of projects which may have varying issues, a committee consisting of the following officers has been constituted with the approval of the Competent Authority: a) Sh SK Puri, Member (Projects) Convenor/Chairman b) Concerned CGM of Technical Member Division c) Sh BN Singh, COM (1) Member d) Sh MP Sharma, CGM (T) Member Secretary e) Sh Tilak Raj, GM (Legal) Member f) Sh PK Aggarwal, GM (F) Member ‘The terms of reference of the Conmittee are as under: a) Dispute Resolution by the DRB & Arbitration Award There is a case for the NHAI to give effect to DRB recommendations without prejudice to its legal right and NHAts stand in arbitration / courts and the outcome of court / arbitration proceedings, with safeguard for the payments to be made to the contractors.Keeping in view the large number of pending arbitration cases with huge contingent liability implications, it was also felt that the NHA} should go in the details of the prevent system so as to identify the systemic and procedural gaps. The feasibility of including persons with legal / judicial experience in the DRB / Arbitration Tribunals in addition to the present system of having persons with the predominantly engineering background should be considered by the NHAI. Similarly, the need for regulating the fees of arbitrators in accordance with the time taken for concluding the proceedings was also emphasized. It was felt that the fees payable should get reduced if the proceedings are not concluded within the stipulated period b) Working Capital Assistance NHAI should look into the matter and provide working capital assistance equivalent to one month billing amount to good performing contractors against Bank Guarantees at mutually agreed terms and conditions which may include rate of interest @ PLR + 1%. If there is any shortfall in the recovery during that month, the amount should be fully recovered out of the next month's bill. However, in no case, the recovery should be allowed to be spilled once beyond the relevant quarter. c) Financial Close At present due to the prevailing financial crisis, concessionaires are not able to achieve the target of financial close within the stipulated six months. NHAI was advised to examine the requests in terms of the provisions of the Concession Agreements (DCA). Those requests whichare considered as beyond the provisions of the DCA may be legally examined by NHAI as regards penalty waiver in genuine cases for consideration of the Competent Authority. The above Committee would examine in detail the specific requests in regard to various projects and wherever found justified after considering ali relevant aspects, rake an appropriate recommendations to the Chairman, NHAI for decision on the basis of merits of each case. JB ee (S.K.Nirmaty General Manager (Admn) To: Sh SK Puri, Member (Projects) Sh BN Singh, CGM(T)-BNS. Sh MP Sharma, CGM(T)-MPS Sh Tilak Raj, GM(Legal) Sh PK Aggarwal, GM(Fin) GaRON= Copy to: All Members All CGMs All GMs . All PIUs/CMUs/SPVs PS to Chairman Librarian / Hindi Officer DRB Cell NOORON=