ISLAMABAD: The much-anticipated Rs 146 billion CAREC Tranche-3 project, part of Pakistan’s commitments under the Central Asia Regional Economic Cooperation (CAREC) programme, faces uncertainty as hurdles continue to delay its launch.
Despite being co-financed by the Asian Development Bank (ADB) and inaugurated by the prime minister in February 2025, the project has yet to move into execution, raising concerns among stakeholders and international financiers.
Talking to journalists here on Tuesday, Imdadullah, spokesman for the Chinese consortium undertaking the CAREC Tranche-3 project, cautioned that unnecessary hurdles continue to hold back one of Pakistan’s most significant infrastructure initiatives. He disclosed that the consortium has formally written to the Special Investment Facilitation Council (SIFC), urging urgent intervention to prevent delays that could damage Pakistan’s credibility with international lenders.
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In its letter, The NXCC’s consortium — comprised of its local JV partners Rustam Associates and Dynamic Constructors emphasized “This is a contract that has already been vetted and approved by ADB and NHA, and inaugurated by the Prime Minister in February 2025. Any effort to reopen or redistribute it is nothing but political interference.”
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 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 reminded the SIFC that it had been “lawfully declared the lowest evaluated bidder with a margin of Rs. 13.2 billion for all four construction lots after a transparent and ADB-approved process.”
The project, valued at Rs. 146 billion, is part of Pakistan’s commitments under the Central Asia Regional Economic Cooperation (CAREC) programme and is being co-financed by the Asian Development Bank.
The consortium warned that any further delay risks losing 25-30 percent 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.
Imdadullah further briefed that the transparent and open procurement process began in December 2023 and lasted nearly 18 months, with bids from almost 20 national and international firms. Two lawmakers had also vied for the project but failed to match the winning bid.
Imdad further stated that, despite several communications addressed to the Chairman Senate, the Prime Minister of Pakistan, and the NHA, no positive response has been received to commence this vital project.
Consortium spokesperson warns that prolonged delays could jeopardize Pakistan’s standing with development partners and slow progress on critical infrastructure designed to boost regional trade and connectivity.
Ullah stressed that any further uncertainty around the project not only risks foreign investor confidence but also undermines national development priorities.
Copyright Business Recorder, 2025