ISLAMABAD: An international construction consortium has finally raised its concerns with the Special Investment Facilitation Council (SIFC) over delay in awarding the multibillion-rupee Tranche-III project of the National Highway Authority (NHA).
In this regard, China’s Ningxia Communications Construction (NXCC) consortium has written a letter to the SIFC after facing alleged propaganda from disqualified competitors in the NHA’s bidding process.
The NXCC’s consortium— comprised of its local JV partners Rustam Associates and Dynamic Constructors— wrote a letter to Director General SIFC and expressed serious concerns over the matter of delay in finalisation of the project despite approval of the project by all relevant forums.
CAREC Tranche III project: PEPRA accuses NHA of withholding documents
The letter said that the tranche-III is part of CAREC, a project of USD 471.9 million which includes a loan of USD 360 million by Asian Development Bank (ADB) and USD 111.9 million from government of Pakistan. It aims to upgrade the 326-kilometre Rajanpur–Dera Ghazi Khan–Dera Ismail Khan section of the Indus Highway (N-55) with climate-resilient works and NHA capacity building.
The consortium appealed the SIFC to ensure immediate award of the project in line with ADB and government approvals, adding that also prevent misuse of parliamentary platforms for commercial interests. “We remain fully committed to mobilizing and delivering this vital project before the loan closing date, ensuring 100 per cent utilization and timely completion,” wrote Zou Yongchao, the authorised representative of NXCC-RA-DC JV.
According to the consortium, the tender was floated in July 2024, bids submitted in August 2024, and after a rigorous international procurement process, their bid was declared the lowest evaluated across all four lots, offering a saving of nearly Rs 13.2 billion for Pakistan compared to the second-lowest bidders.
The ADB reviewed the process in detail and issued its No Objection Certificate (NOC) in April 2025. The award was subsequently endorsed by the NHA Executive Board, the CDWP, and formally inaugurated by the Prime Minister Shehbaz Sharif in February 2025.
Despite these clearances, the project has stalled due to persistent challenges raised by losing bidders, allegedly linked to two Senators, according to the allegations of the consortium in its letter.
The consortium alleged that these second-lowest bidders are leveraging their political positions to push for re-tendering, a move that could delay the project award until 2027 and jeopardize loan utilization before its November 2027 closing date.
The consortium warned that any further delay risks losing 25–30 per cent of project funds, escalating costs, and sending a negative signal to international investors about Pakistan’s investment climate. “For foreign partners, this raises a very worrying question: if even after winning fairly, with donor’s approval and the Prime Minister’s inauguration, a project can still be blocked, how can foreign companies feel secure investing in Pakistan,” the letter added.
The consortium finally appealed for the support of the SIFC to ensure that this project is awarded without further delay, in line with ADB’s clearance and the approvals already given by the government.
The SIFC has been requested to help prevent the alleged misuse of parliamentary platforms for commercial interests, which discourages foreign investment and send a strong message of confidence that Pakistan stands by transparency, fair competition, and timely implementation of its development commitments, the consortium added.
Copyright Business Recorder, 2025
Comments
Comments are closed for this article.