Senate Cancels Rs26B Highway Bid Over Irregularities

The Senate Standing Committee on Economic Affairs, chaired by Saifullah Abro, has declared the bidding process for the Rs26 billion Nowshera-Chitral highway project invalid, citing irregularities, and directed the National Highway Authority (NHA) to initiate a fresh tender within 30 days.

As per reports, the committee reviewed the N-45 project, particularly the Kalatak-Chitral section spanning 47.98 kilometres, which carries an estimated cost of $93.779 million. Officials informed the panel that only one bid was received from M/s Sambu Engineering, which was found to be 224.24% higher than the engineer’s estimate.

Following this, a re-bidding process was initiated in December 2025, with three companies submitting proposals. The project is being financed through a Korean loan, and discussions are ongoing with Korean authorities regarding execution arrangements, including the possibility of joint ventures with local firms.

Committee members raised concerns over the lack of transparency, noting that required documentation, including company profiles, eligibility criteria and bidding records, had not been provided despite earlier instructions. The panel concluded that due process had not been followed and directed that the new bidding be conducted through a two-envelope system covering both technical and financial evaluations.

The committee also highlighted delays in project execution. Officials said work has yet to begin on sections such as Timergara and Chakdara, despite initial plans and prepared PC-I documents. Members noted that the Timergara-Chakdara segment is critical for regional connectivity and requires urgent attention due to deteriorating infrastructure, including a tunnel in poor condition.

The panel was informed that foreign-funded procurement processes typically take around 350 days, contributing to delays. However, the committee expressed concern that the project, initiated in 2021, has not progressed.

Separately, the committee sought details on the auction of public sector power plants, expressing dissatisfaction over the non-disclosure of records. It directed the Power Division to submit complete documentation related to coal supplier bidding and the auction of four Genco plants within two days.

During a briefing on the 660MW Jamshoro coal-fired project, officials said the first unit is operating on imported coal, while work on the second unit has not commenced due to carbon emission obligations. They also noted that the Asian Development Bank has adopted a policy of not financing coal-based projects, affecting funding availability.

The committee also formed a sub-committee to review foreign-funded projects, focusing on budgets and causes of delays, and called for accountability of officials responsible for stalled progress.