Several construction companies have raised objections over the award of contracts worth Rs120 billion for the Central Asia Regional Economic Cooperation (Carec) Tranche-III corridor project, after all four sections were secured by a single Chinese firm, Ningxia Communication Construction (NXCC). The contracts, awarded earlier this month, have now been challenged before the Grievance Redressal Cell (GRC) of the National Highway Authority (NHA).
A spokesperson for the National Accountability Bureau (NAB) confirmed that the bidding results for all four sections of the highway have been formally contested. M/s Zahir Khan & Bros (ZKB) has challenged Lot-1, M/s Zhonggang Construction Group-Matracon-AWK JV has filed a grievance against Lot-2, M/s ZGCC-Matracon has objected to Lot-3, while M/s ZKB-Sultan Mehmood & Co JV has questioned the awarding of Lot-4 to NXCC. The spokesperson further stated that initial scrutiny of the complaints is underway to determine jurisdiction and maintainability.
The controversy has placed the NHA in a difficult position as it now faces uncertainty over the execution of the project. According to a senior official, this is not the first time NXCC’s bidding has come under scrutiny. A few months ago, another Chinese firm, M/s China Construction Third Engineering, had challenged NXCC’s technical clearance and raised multiple objections. However, those concerns were dismissed by the authority at the time.
The fresh grievances primarily question the financial strength of NXCC, specifically regarding the volume of construction work it has handled over the past three years, a key criterion set by the NHA’s bidding regulations. Documents indicate that NXCC was previously disqualified in 2023 for failing to complete a 62-kilometer section between Lodhran and Multan, yet the firm was still allowed to participate in bidding for the Carec Tranche-III project.
Despite these concerns, NHA Chairman Sheheryar Sultan has maintained that NXCC was legally cleared by the courts, a claim that the complainants have now challenged, demanding that the authority produce a court order proving such clearance. The four opposing firms have requested that the NHA suspend the procurement process under Rule 48(4) of the Pakistan Procurement Regulatory Authority (PPRA) rules until the dispute is resolved.
The Carec Tranche-III project consists of four segments, for which both technical and financial proposals were invited. A total of 20 firms submitted bids, with varying numbers of contenders for each section. The first lot (Rajanpur-Jampur, 58km) had six competing firms, the second lot (Jampur-DG Khan, 64km) saw seven bidders, the third lot (DG Khan-Tibbi Qaisrani, 112km) had five contenders, and the fourth lot (Tibbi Qaisrani-DI Khan, 96km) had only two. After technical evaluation, five firms each qualified for Lots 1 and 2, four for Lot-3, and only two for Lot-4.
The total PC-I cost of the four sections is estimated at Rs85.44 billion, and the project includes the construction of an additional carriageway, converting the existing two-lane highway into a four-lane road. However, with the contract awards now in dispute, the future of this key infrastructure project remains uncertain.
