The Senate Standing Committee on Communications has expressed concerns over the National Highway Authority’s (NHA) handling of projects funded by the Asian Development Bank (ADB), particularly regarding the Central Asia Regional Economic Cooperation (CAREC) Tranche-III project. The committee, during a meeting held on Thursday, revealed that the NHA had violated ADB’s guidelines, which led to complications in the awarding of contracts.
As per media reports, the meeting, chaired by Senator Kamil Ali Agha, disclosed that the Public Procurement Regulatory Authority (PPRA) had barred NHA from awarding contracts for four lots of the CAREC Tranche-III project to a joint venture (JV) of three firms. The reason cited was the absence of essential documents required for the contract award.
The project involves the Rajanpur-D.G. Khan-D.I. Khan section, and the subcommittee has been tasked with probing this section.
Senator Saifullah Abro pointed out that ADB’s guidelines require that each partner in a JV must have experience equal to at least 25% of the total project scope, with each partner’s share in the project not falling below 25%. However, the NHA allowed a partner in the JV to participate with only a 2% share, a decision that violates ADB’s requirements.
Abro also highlighted that the NHA had previously made a similar mistake in awarding CAREC Tranche-I (Shidoor-Gilgit) to the same JV, despite their shares being below the required threshold.
The committee has now directed the NHA to submit all relevant documentation, including the terms of reference, a comprehensive review of the project proposal, and the technical and financial bidding documents from all participating firms within 15 days. The committee also requested an evaluation of the consultant’s input and related records to ensure transparency and compliance with regulations.
In addition to the investigation into the CAREC Tranche-III project, the subcommittee is also probing the clearance of NXCC, a Chinese construction firm, for the Lodhran-Multan project through arbitration, despite being a non-performing company. The committee members unanimously agreed that no informed decision could be made without reviewing the complete set of documents.
Convenor Senator Kamil Ali Agha has given the NHA a 15-day deadline to gather and submit all required documentation for verification of the company awarded the project. The subcommittee is expected to reconvene after the deadline to continue its deliberations based on the submitted records.
The committee’s direction follows a recent decision by the PPRA that echoed similar concerns, reinforcing the subcommittee’s stance on the matter.
