Islamabad, Feb 8: The National Highway Authority (NHA) has awarded all four sections of the Rs120 billion Central Asia Regional Economic Cooperation (Carec) Tranche-III corridor project to Chinese firm Ningxia Communication Construction (NXCC) following the opening of financial bids on Thursday. However, the bidding process has stirred controversy, with competing firms planning to challenge the decision in court, citing irregularities and a lack of transparency.
According to sources reported by Dawn, several bidders filed formal complaints with the NHA’s Grievance Redressal Cell (GRC) before the bids were opened. They allege that their concerns were not addressed and that the process proceeded without consideration of their objections. China Construction Third Engineering, a major competitor, accused the NHA of rushing the bidding process by scheduling it just two working days after a previous cancellation, without thoroughly reviewing the grievances raised by firms.
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Documents obtained reveal that NXCC had been disqualified by the NHA in 2023 for failing to complete the Lodhran-Multan section of a separate project. Despite this, the company was allowed to participate in both the technical and financial bidding for the Carec Tranche-III project. Competitors argue that this decision violated procurement principles, allowing an unqualified bidder to participate and potentially undermining the integrity of the process.
In response to the allegations, NHA Chairman Sheheryar Sultan defended the bidding procedure, asserting that NXCC had been cleared by the courts after its disqualification. He further emphasized that all concerns had been addressed and that the Asian Development Bank (ADB), which is involved in the project, had approved all participating firms.
The Carec Tranche-III project is divided into four sections, with 20 firms submitting bids. Six companies competed for the 58km Rajanpur-Jampur section, seven for the 64km Jampur-DG Khan segment, five for the 112km DG Khan-Tibbi Qaisrani stretch, and two for the 96km Tibbi Qaisrani-DI Khan section. After technical evaluations, 16 firms advanced to the final bidding stage. The project aims to expand a two-lane highway into a four-lane road, enhancing regional connectivity, with a total PC-I cost of Rs85.44 billion.
Despite NHA’s assurances regarding the fairness of the process, the controversy surrounding the bidding is expected to escalate. Legal challenges from dissatisfied competitors are likely to delay the implementation of the project, prolonging efforts to improve infrastructure and connectivity in the region.
