NHA awards Rs120bn Carec Tranche-III project to Chinese firm amid bidding controversy

Competing bidders plan legal action, alleging irregularities; NHA defends process, citing court clearance

The National Highway Authority (NHA) has awarded all four sections of the Rs120 billion Central Asia Regional Economic Cooperation (Carec) Tranche-III corridor project to Chinese firm Ningxia Communication Construction (NXCC) after opening financial bids on Thursday. However, the bidding process has sparked controversy, with competing firms planning to challenge it in court, alleging irregularities and a lack of transparency.

Dawn reported, citing sources, that some bidders had lodged formal complaints with NHA’s Grievance Redressal Cell (GRC) before the bids were opened. However, they claim that their concerns were ignored, and the process proceeded without addressing their objections. A major competitor, China Construction Third Engineering, alleged that the NHA rushed the bidding process, scheduling it within two working days of a previous cancellation, without thoroughly reviewing grievances.

Documents reveal that NXCC had previously been disqualified by the NHA in 2023 for failing to complete the Lodhran-Multan section. Despite this, the company was allowed to participate in both technical and financial bidding for the Carec Tranche-III project. The firm’s competitors argue that unqualified bidders were unfairly approved, violating procurement principles and jeopardizing the integrity of the process.

In response to the allegations, NHA Chairman Sheheryar Sultan defended the bidding process, stating that NXCC was cleared by the courts after its disqualification. He added that all concerns had been addressed, and the Asian Development Bank (ADB), which is involved in the project, had approved all participating firms.

The Carec Tranche-III project comprises four sections, with a total of 20 firms submitting bids. Six companies competed for the 58km Rajanpur-Jampur section, seven for the 64km Jampur-DG Khan segment, five for the 112km DG Khan-Tibbi Qaisrani stretch, and two for the 96km Tibbi Qaisrani-DI Khan section. 

After technical evaluations, 16 firms qualified for the final bidding stage. The project, with a total PC-I cost of Rs85.44 billion, aims to expand a two-lane highway into a four-lane road to enhance regional connectivity.

Despite the NHA’s assurances, the controversy surrounding the bidding process is expected to escalate, with legal challenges likely to delay the project’s implementation.

Monitoring Desk
Monitoring Desk
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