Lawmakers flag irregularities in NHA road project award

Carec Tranche-III contract and two other projects under scrutiny for rule violations and collusion

ISLAMABAD: Parliamentary committees have raised concerns over an Asian Development Bank-funded road project, citing alleged collusion, ghost tendering, and other irregularities by the National Highway Authority (NHA). The issue involves the Carec Tranche-III project worth Rs170 billion, awarded to a joint venture (JV) that had been disqualified by NHA in 2023 for failing to complete the 62km Lodhran-Multan section.

The standing committees of the Senate and National Assembly on Economic Affairs Division and communications, along with a sub-committee of the Senate’s communication panel, have been reviewing the contract for four months. NHA, however, did not submit documents to counter the allegations. Committees noted the contract was initially awarded based on auditor sheets without proper verification of the JV’s credentials.

Despite violations of Public Procurement Authority rules, the NHA maintained the contract with the controversial JV. In an August 2 Senate committee meeting, NHA was given a 15-day deadline to submit all relevant documents, with the committee expected to give its verdict in the next session.

Two additional projects of the same JV are also under scrutiny. Lawmakers highlighted irregularities in the Gilgit-Shandur motorway project and the Hanzol Hydropower Project, noting inconsistencies in work orders, bid documents, and audit reports.

PPRA endorsed the committees’ findings and directed NHA to provide details of the JV’s technical and financial capacity. NHA officials agreed, but under rules, contractors cannot submit new documents not part of the original bid. The Senate body called the case an “open-and-shut” example of corruption, directing NHA to restart the bidding process.

The Central Asia Regional Economic Cooperation program, supported by ADB since 1997, aims to strengthen regional economic ties. Tranche-III includes four lots spanning Rajanpur to DI Khan, with participating countries including Afghanistan, Azerbaijan, China, Georgia, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan.

Monitoring Desk
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