A Senate committee has ordered the cancellation of bids for the Rs26 billion Nowshera–Chitral highway project in Khyber Pakhtunkhwa, citing serious irregularities in the procurement process.
The directive was issued during a meeting of the Senate Standing Committee on Economic Affairs, chaired by Saifullah Abro.
The committee declared the bidding for the N-45 project invalid and directed the National Highway Authority to initiate a fresh process within 30 days.
Officials were instructed to ensure:
The controversy centered on the Kalatak–Chitral section (47.98 km), where a single bid submitted by M/s Sambu Engineering was found to be 224% higher than the engineer’s estimate.
The project, estimated at $93.7 million, is being financed through a Korean loan, with conditions favoring contractors from the lending country.
Committee members expressed dissatisfaction over:
The panel also questioned ongoing negotiations with Korean authorities to allow joint ventures with Pakistani firms.
The committee highlighted significant delays, noting that the project was initiated in 2021, but work has yet to begin.
Concerns were raised that key sections, such as Timergara–Chakdara, critical for regional connectivity, remain neglected.
A sub-committee has been established to review foreign-funded projects, focusing on:
Separately, the panel sought records related to the auction of public-sector power plants and raised concerns about the Asian Development Bank’s policy of not financing coal-based projects, which has affected funding for initiatives such as the Jamshoro power project.
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