• Fresh bidding process to be completed within 30 days
• Body questions transparency, seeks full bidding records
• Subcommittee formed to review foreign-funded projects

ISLAMABAD: A Senate panel on Monday ordered the cancellation of bids for the Rs26 billion Nowshera-Chitral highway project in Khyber Pakhtunkhwa over serious irregularities, and directed fresh bidding.

A meeting of the Senate Standing Co­­mmittee on Economic Affairs, presided by Senator Saifullah Abro, also exp­­ressed displeasure over the non-disclosure of records pertaining to the auction of public sector power plants last year.

NHA Chairman Asadullah Khan brie­fed the panel on the N-45 project, which comprises three sections. The project’s third section, Kalatak-Chitral (47.98 km), came under detailed discussion.

It has an estimated cost of $93.779 million and attracted a single bid from M/s Sambu Engineering on August 6, 2024, which was opened on January 31, 2025.

The bid value was found to be 224.24 per cent higher than the engineer’s estimate. To avoid such an expensive project, a re-bidding process was initiated on December 15, 2025.

Three companies have since submitted proposals, and the matter is under discussion with Korean authorities.

A representative of the Economic Affairs Division (EAD) reported that the project was financed through a Korean loan, under which the lending country required detailed evaluation and prefer­red execution through its own contractors. However, negotiations were und­­erway with Korean authorities to allow a joint venture with a Pakistani company.

Mr Abro pointed out that the Senate panel had previously opposed the process and directed that the EAD must retain copies of all bidding documents. He also questioned the eligibility of the Korean company and expressed concern that the NHA had failed to provide the required company profile, eligibility criteria, and bidding documents despite earlier directions.

“The chairman NHA failed to address the queries of the committee, as the legal process has not been followed,” the Senate Secretariat said in a statement. “Consequently, the Senate panel declared the N-45 project bidding null and void over irregularities and directed the NHA to initiate a fresh process within 30 days, ensuring both financial and technical evaluations through a two-envelope procedure,” it added.

The committee was informed that work on the first section of the project, particularly Timergara and Chakdara, had not started, whereas the NHA was working on far-flung sections.

Senator Hidayatullah Khan observed that the Timergara-Chakdara section has the capacity to connect four districts; however, the tunnel in the area is in a highly deteriorated condition and requires urgent reconstruction.

Officials said the project initially covered the Chakdara-Timergara section, and the PC-I had already been prepared.

It was further stated that the project involved foreign financing, and the procurement process alone takes approximately 350 days. The committee expres­sed serious concern over the delay, noting that despite being initiated in 2021, the project had yet to commence. It also ex­­pressed concern over the absence of the project consultant during the meeting.

The meeting constituted a sub-committee to review all foreign-funded projects, including their budgets and causes of delay. The chairman emphasised that officials responsible for delays must be held accountable.

Meanwhile, during a briefing on the 660MW Jamshoro coal-fired power project, officials told the panel that LOT-I is currently operating on imported coal, while LOT-II had not been started due to obligations on carbon emissions.

It was disclosed that the Asian Development Bank (ADB) had adopted a policy of not financing coal-based power projects, which had impacted the availability of funding.

The Committee directed the Power Division to submit comprehensive details of the bidding process for coal suppliers, along with auction records of the four Genco power plants, within two days.

Published in Dawn, May 5th, 2026