ISLAMABAD: As soon as the Capital Development Authority (CDA) relaxed the previously stringent criteria for awarding road contracts, an overwhelming number of construction firms applied for a new road project worth Rs3.58 billion.

This time, 13 companies submitted bids for the project, which involves the construction of a 2.7-kilometre portion of Margalla Avenue to ultimately link it with the Peshawar Motorway (M-1). Construction of an interchange on the GT Road is also part of the project.

Last year, the CDA had invited bids for five mega projects, including the Serena Interchange, Murree Road underpass, T Chowk Flyover, Shaheen Chowk and F-8 interchange, under strict criteria such as completion of mega projects within the shortest possible time.

As a result, only a few companies submitted bids and, out of the five projects, four worth billions of rupees were executed by a joint venture of two companies.

Thirteen firms compete for Rs3.58bn project to link Margalla Avenue to M-1

However, this time, after the criteria and fast-tracking requirements were removed, an overwhelming number of companies submitted their financial and technical bids. The technical bids were opened on Monday, while the financial bids will be opened in the coming days after evaluation of the technical bids.

Sources said healthy competition was expected for the project. “Whenever a large number of companies participate in the bidding process, CDA receives good rates, so we are expecting healthy competition,” said a CDA officer.

Sources said the bidders include a joint venture of Habib Construction Services and ZKB, Maksons, Elum KDC JV, Ikan Sarco JV, New Khan Builders, NPI Construction Engineering, TTC-Zarrar JV, Umer Jan Pro Built JV, Wintoos Builders, Asad Contractors, Fast Track Construction, Highways Construction, and Kamran Kundi and Co.

Meanwhile, at the ending point of this road near the Sangjani Grid Station, within the limits of Islamabad where the CDA project will end, the National Highway Authority (NHA) is constructing another 2.5-kilometre portion of the road falling within the limits of Rawalpindi. This section will be linked with the M-1 near the AWT Housing Society.

The NHA has already awarded the contract for this portion, worth Rs4.1 billion, to the National Logistics Cell (NLC), which is executing the project.

The CDA project, once started, is expected to be completed within eight months. It is relevant to note that the project has remained under discussion for the past five years. The PTI government had also announced the start of the project but delayed it. Later, the CDA on several occasions announced that it would begin the project soon.

“Now there is no delay. Soon after the bidding process, we will move towards starting this project and will try to complete it before the stipulated time,” said a CDA official.

The CDA will build a three-lane dual carriageway with two-lane service roads, including a cloverleaf interchange.

According to a CDA working paper, the maximum benefit from Margalla Avenue cannot be achieved until it is linked to the M-1.

The project comprises a six-lane road facility and aims to provide an alternative route for commuters travelling to Islamabad from the GT Road (N-5) and vice versa.

In 2021, then prime minister Imran Khan directed the CDA to develop the portion falling within Islamabad, while the Rawalpindi Development Authority (RDA) was asked to construct the Rawalpindi section.

However, the subsequent PDM government assigned the Rawalpindi portion to the NHA. It is worth noting that Margalla Avenue from E-11 is the principal road, with a right of way of 600 feet. However, the CDA constructed the road on around 400 feet of the area from D-12 to the GT Road and has yet to decide on the acquisition of the remaining area and built-up structures falling along the alignment.

Fencing work on this portion is also pending.

Meanwhile, sources in the CDA said that besides this project, the civic agency is also planning to invite bids for the construction of the Kashmir Chowk underpass on Murree Road near the Islamabad Club.

Published in Dawn, January 27th, 2026