Construction work on Kashmir Highway’s expansion and renovation project has been delayed because of late payments to the contractor by the Capital Development Authority (CDA), sources said on Sunday.
The project, which was being jointly funded by the CDA and the federal government, was expected to be completed up till June 2014.
Initially, the project was expected to be completed in February 2013 but it had been delayed reportedly due to the scarcity of funds.
According to sources, in February 2011, Capital Development Authority (CDA) awarded the contracts of expansion of Kashmir Highway in two packages; contracts of modern carriageway was awarded for Rs 1.69 billion, , while contract of the other carriageway was awarded for Rs 1.64 billion.
The cost of the project had increased due to a delay in the completion of the project and initiation of a few more projects, including the construction of an underpass, a flyover and footpaths.
Sources said CDA could not pay Rs 35 million to the contractor of the first package and Rs 250 to the second package contractor on time last year.
When contacted, CDA Chairman Syed Tahir Shahbaz said all the contractor firms working on different projects in the federal capital, except the firm working on the Kashmir Highway project had been paid the funds.
He said the Kashmir Highway project contractors had been directed to speed up the construction work. He admitted that the civic body could not make payments due to scarcity of funds which had caused delay in the projects, but now that the payments had been made, the project would be completed till June 2014.