Consortium seeks nod to complete CAREC road project

ADB voices concern $360m loan could lapse if work is not expedited

ISLAMABAD:

A consortium led by Chinese firm Ningxia Communications Construction has once again reaffirmed its commitment to completing CAREC Tranche-III, provided the National Highway Authority (NHA) clears the process and allows it to proceed as the project's winning contractor.

Chinese company spokesperson Imdadullah stated that contracts for dualisation of 326 kilometres of N-55 highway, stretching from Rajanpur through DG Khan to DI Khan, had been awarded purely on merit, with no ill-intent from any bidder.

Recently, in a letter to the Economic Affairs Division, the Asian Development Bank (ADB) expressed concern that a $360 million (Rs108 billion) loan earmarked for the Central Asia Regional Economic Cooperation (CAREC) Corridor Development Investment Programme's Tranche-III could lapse next year without project's completion. In the absence of immediate acceleration by the NHA, the funds will expire without completion of the Tranche-III road project.

Imdadullah further stated that the project had been stalled for eight months following controversies surrounding the bidding process.

The open procurement process began in December 2023 and lasted nearly 18 months, with bids from almost 20 national and international firms. Bids were opened in February 2025 and approved by the ADB. The project, valuing at Rs146 billion, is part of Pakistan's commitments under the CAREC programme and is being co-financed by the ADB with a loan of Rs108 billion.

The spokesperson mentioned that a parliamentary panel had also recommended that work on the project should be initiated within 15 days and progress updates be submitted to the main committee from time to time.

The NXCC-led consortium, comprising local partners Rustam Associates and Dynamic Constructors, had been lawfully declared the lowest evaluated bidder with a margin of Rs13.2 billion for all four construction lots after a transparent and ADB-approved process.

The Executive Committee of the National Economic Council (Ecnec) had also approved bids from the joint venture, even though parliamentary committees and the Public Procurement Regulatory Authority (PPRA) voiced concern.

The NHA defended the choice, stating that allegations of non-performance against the lead partner "did not reach finality in accordance with the procedure and rules", and the firm was never blacklisted by any agency.

The ADB confirmed that it had no objection to awarding contracts to the lowest evaluated bidder across four specific lots. These included lot one from Rajanpur to Jampur (57.5 km) for Rs23.5 billion, lot two from Jampur to Dera Ghazi Khan (64 km) for Rs29.1 billion, lot three from Dera Ghazi Khan to Tibi Qaisrani (111.7 km) for Rs52 billion and lot four from Tibi Qaisrani to Dera Ismail Khan (96.2 km) for Rs42 billion. The project, executed by the NHA, is considered crucial for regional connectivity and economic development.