ISLAMABAD: The National Highway Authority (NHA) has rejected allegations regarding irregularities in the awarding of the ADB-funded Central Asia Regional Economic Cooperation (CAREC) Tranche 3 project, formally submitting a detailed status report to the Prime Minister’s Office.
The project, which involves the construction of an additional two-lane carriageway along the 330 km stretch of National Highway N-55 from Rajanpur to Dera Ismail Khan, is financed under ADB Loan No. 4416-PAK. The NHA clarified that the entire procurement process adhered to strict ADB guidelines and was carried out under the ADB Prior Review Mechanism, requiring prior approval from ADB at every stage—both technical and financial.
In response to claims of awarding the project to a blacklisted firm, the NHA asserted that the successful consortium—comprising M/s Ningxia Communications Construction Co. Ltd (NXCC) of China, along with local partners M/s Rustam Associates (RA) and M/s Dynamic Constructors (DC)—was not blacklisted by any Pakistani agency, including the NHA, FBR, PEC, PPRA, or the donor agency. The NHA emphasized that these firms were in good standing with the Pakistan Engineering Council and the Public Procurement Regulatory Authority (PPRA), with the local partners being registered in the “No Limit” category with PEC.
The NHA also addressed concerns regarding NXCC’s performance on the Lodhran–Multan project, noting that all issues had been resolved through ADB-sanctioned procedures. The ADB had issued No Objection Certificates (NOCs) for the technical and financial evaluations after reviewing all relevant documentation and clarifications.
The report also corrected inaccuracies in media reports, stating that the lowest evaluated bids for the project totaled Rs146 billion—about 20% lower than the NHA’s own engineer’s estimate, resulting in a saving of Rs13.19 billion. The bidding process followed the Single Stage – Two Envelope Procedure, in line with ADB’s standard regulations.
After securing ADB’s approval at each step, the NHA awaits final approval from the Executive Committee of the National Economic Council (ECNEC) before awarding the contracts. The NHA’s report concluded that the procurement process was transparent, with full oversight and approval from ADB at every stage.
