Foreign-funded projects: NHA fails to satisfy Senate panel on implementation pace

ISLAMABAD: The National Highways Authority (NHA) failed in satisfying the Senate Standing Committee on Economic Affairs on implementation of foreign-funded infrastructure projects worth billions of dollars, and questions were also raised on its bidding process.

The parliamentary panel led by Senator Saifullah Abro convened on Monday to discuss ongoing and completed projects of communications sector particularly National Highways Motorways and Road Infrastructure under multilateral, bilateral and UN agencies along with the details of tendering process and interest paid by the federal government on these projects.

The officials informed that a total of 33 projects have been completed as of July 2024, of which, 15 projects were funded by Asian Development Bank, five projects by World Bank, seven projects by China, one project funded by Saudi Fund for Development, one project by USAID, three projects by Japan, and one project was funded by Kuwait Fund.

The total commitments for these projects were US$ 9,996.20 million with disbursements of US$ 9,355.19 million.

However, 10 projects are ongoing with a commitment of US$ 1,547.03 million, and from these four projects are each funded by Asian Development Bank and Korea and one project each by Saudi Fund for Development and World Bank.

The committee lamented NHA officials for non-provision of required details regarding CAREC Corridor Development Investment Program-Tranche 1 and II projects. Despite being asked several times, the authorities failed to provide the necessary details of ongoing projects, the chairman committee said.

While discussing the ongoing projects, Senator Saifullah Abro remarked that the contracts of several projects could not be awarded for three years since the signing of loan agreement. He opined that such delays cost nation a fortune and EAD should devise an implementation mechanism to bring transparency in these projects.

After the detailed discussions, the committee recommended EAD and its concerned department (NHA) to provide details of numbers of bidders participated (qualified and disqualified) and submitted their bids of all lots under ongoing CAREC Corridor Development Investment Program-Tranche 1 project along the reasons of delay in its completion.

The committee also recommended EAD and its concerned department (NHA) to provide bidding data sheet of all ongoing projects under Communications Sector to the Committee.

Regarding the implementation status on the recommendation of the committee concerning of the commencement of work on Section-I (Chakdara-Timargara) N-45, the committee was dissatisfied with the replies given by the NHA and recommended NHA to provide details later to the committee.

On the implementation status of the recommendation regarding provision of a copy of bank guarantee/ bid security along with a copy of verification from bank (Head Office) of the contractor for N-70 Qila Saifullah-Loralai-Waigum Rud Road Section, the committee recommended EAD to write letter to State Bank of Pakistan about the confirmation of the guarantee given by the bank.

Copyright Business Recorder, 2025