The Senate Standing Committee on Economic Affairs, chaired by Senator Saif Ullah Abro, has declared the bids for the Asian Development Bank’s (ADB) CAREC Tranche-III (Rajanpur–DG Khan–DI Khan) project, valued at around Rs172 billion, null and void. The Committee ruled that the bidding process was marred by fraudulent documentation, unverified audit reports, and manipulation allegedly carried out by contractors in collusion with National Highway Authority (NHA) officials.
The disqualified bidders include M/s Ningxia Communications Construction Co Ltd (NXCC), M/s Dynamic Constructors, and M/s Rustam Associates. The joint venture failed to meet the mandatory average annual turnover requirement, while NXCC—the lead partner—had already been disqualified in earlier ADB-funded projects such as CAREC Tranche-II (Shikarpur–Rajanpur) in 2021 and the Yarik–Zhob Project in 2022. The company was also involved in litigation following the termination of the Lodhran–Multan project in 2023, where NHA cited non-performance, fake documents, and forged stamps as grounds for cancellation.
According to official minutes of the Committee, the audit firm A.B.M & Co. submitted working papers without supporting documents, raising doubts about the authenticity of its findings. Legal action was recommended against the firm for producing an unsubstantiated audit report. Similar action was also proposed against arbitrator Zafar Hussain Siddiqui, who was nominated by NHA despite having prior associations with NXCC’s joint venture partners, Dynamic Constructors and Rustam Associates.
The Committee instructed the Economic Affairs Division (EAD) and NHA to formally notify ADB within two days that the bids were fraudulent, technically invalid, and manipulated. It further directed that the three companies be considered for blacklisting due to their submission of fake documents and misinformation. Copies of the official communication are to be sent to the Prime Minister and the Committee. The matter will also be raised directly with the Prime Minister through the office of the Chairman Senate.
In addition, the EAD and its concerned department were tasked with recovering approximately Rs1.7 billion in tax relief from firms that had participated in the Shandoor–Gilgit project. They were also instructed to present a comprehensive report on Section I (Chakdara–Timergara) of the N-45 project at the Committee’s next sitting and to provide details on rehabilitation work for the Chitral Approach Road, an issue highlighted by Senator Falak Naz.
The Public Procurement Regulatory Authority (PPRA) had already suspended the procurement process after receiving complaints and, in earlier meetings, clarified that while PPRA rules apply, international donor guidelines take precedence in foreign-funded projects. In this case, ADB’s procurement framework was applied under the PPRA’s provisions.
Senator Abro expressed serious concern that despite NXCC’s repeated disqualifications, poor performance record, and involvement in litigation, the firm continued to be shortlisted for multi-billion-rupee infrastructure projects. He stressed that NHA should have challenged disputes in the Supreme Court rather than entering arbitration, especially given the company’s termination from previous contracts.
