Lodhran Multan motorway project: MPs seek details of award of contract to ‘non-performing’ Chinese firm

ISLAMABAD: A parliamentary panel, Thursday, directed the National Highways Authority (NHA) to provide full record regarding the award for the construction contract of the Lodhran–Multan motorway project to Chinese firm Ningxia Communication Construction (NXCC) through arbitration, despite its status as a non-performing company.

The directives were passed by Senator Kamil Ali Agha, convenor Sub-Committee of the Senate Standing Committee on Communications held here while discussing the matter related to the award of contract to a Chinese firm for the construction of the Lodhran–Multan motorway project.

Senior officials from the NHA and the Ministry of Communications, including the chairman NHA, Joint Secretary, General Manager Procurement, Deputy Director Procurement, and Member Planning, were also present.

The NHA officials have defended the bidding process, stating that NXCC was cleared by the courts after its disqualification. They maintained that all concerns before awarding the construction of 120 kilometres (KMs) long road were addressed, and the Asian Development Bank (ADB), which is involved in the project, had approved all participating firms.

The sub-committee has been tasked with probing the Tranche-III (Rajanpur–DG Khan–DI Khan) section of the CAREC project. The terms of reference include a comprehensive review of the project proposal, the complete tendering process, and the technical and financial bidding documents of all participating companies, as well as an evaluation of consultant input and related records.

During the session, Convenor Senator Kamil Ali Agha deferred the proceedings, granting the NHA a period of 15 days to collect and submit all relevant documentation required for verification of the company awarded the project. Members of the committee, unanimously, agreed that a fair and informed decision could not be made without examining the complete set of documents.

The committee also noted that a recent decision by the Public Procurement Regulatory Authority (PPRA), which echoed similar concerns, further reinforced the committee’s direction. The sub-committee will re-convene after the deadline to resume deliberations based on the submitted records.

Copyright Business Recorder, 2025