Consortium fears delay in N-55 project

Says dilly-dallying will pose risk to concessionary financing, make project unviable


ZAFAR BHUTTA August 19, 2025 2 min read
A worker walks past inside the Asian Development Bank (ADB) headquarters in Manila June 17, 2009. Photo:REUTERS

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ISLAMABAD:

A Chinese-led consortium has said that any delay could pose a risk to the Asian Development Bank's (ADB) concessionary financing for the Rs146 billion N-55 expansion project as it may potentially make the project financially unviable in the future due to rising costs.

The consortium is all set to build the much-anticipated additional carriageway on the Indus Highway (N-55) between Rajanpur and Dera Ismail Khan. The Rs146 billion project, funded under the ADB's Central Asia Regional Economic Corridor programme, will help ease congestion, enhance safety and strengthen regional trade linkages.

Speaking to The Express Tribune, Imdadullah Khan, the spokesperson for the consortium, which is the successful bidder, said that their team had been "fully mobilised" to deliver the project on time. "Its groundbreaking has already been done by Prime Minister Shehbaz Sharif and we are committed to avoiding any delay. This is not just an infrastructure upgrade; it's a paradigm shift in how such projects are executed in Pakistan," he remarked.

The mega project covers 330 kilometres of dual carriageway - 121.5 km from Rajanpur to Dera Ghazi Khan and 208 km from DG Khan to Dera Ismail Khan. It includes 11 new bypasses to divert heavy traffic away from busy urban centres.

Six bypasses will be built from Rajanpur to DG Khan, including the ones at Rajanpur, Fazilpur, Muhammad Pur, Jampur, Mana Ahmadani and Kot Chatta. Another five will connect DG Khan to DI Khan, at Shah Sadruddin, Kala, Shadan Lound and Ramak.

The spokesperson further said that a transparent and open procurement process began in December 2023 and lasted nearly 18 months, where bids were received from almost 20 national and international firms. The successful bidder - Ningxia Communications Construction of China, partnering with Pakistan's Rustam Associates and Dynamic Constructors - was the lowest bidder with an offer Rs13.19 billion lower compared to its nearest competitor.

The bid was also about 20% below the engineer's estimate based on the updated CSR-24 rates. According to the spokesperson, two lawmakers also vied for the project but failed to match the winning bid.

"We won through open bidding. Our record is transparent and our bid was evaluated and approved by both the National Highway Authority (NHA) and the Asian Development Bank. Some unsuccessful parties are now trying to influence the process, but we are confident in the legitimacy of our award," Khan said.

The NHA, in its letter written to the Prime Minister's Office, also refuted allegations about the bidding process and clarified that the bid was transparent and well monitored and approved by the ADB before giving final nod to the successful bidder.

Prime Minister Shehbaz Sharif inaugurated the project in February 2025, setting a two-year completion target. Once operational, the expanded Indus Highway will cut travel time and open up new trade and economic opportunities in southern Punjab and Khyber-Pakhtunkhwa. "This is a defining moment for Pakistan's road network," Khan remarked.

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