Irregularities in KP projects: Senate panel asks EAD to take up issue with World Bank
ISLAMABAD: Senate Committee on Economic Affairs directed the Economic Affairs Division (EAD) to take up the issue of irregularities in the bidding process of ongoing foreign funded projects in Khyber Pakhtunkhwa with World Bank Country Director and urged the Chief Minister to take immediate notice of the matter.
The meeting of committee held under the chairmanship of Senator Saifullah Abro reviewed progress on foreign-funded development projects in Khyber Pakhtunkhwa, the Karachi Mobility Project (BRT Yellow Line), and the Akram Wah Canal Project.
The committee resolved to recommend that the federal government should reduce reliance on foreign borrowing by discouraging new foreign-funded loan projects. He also directed EAD to place the Committee’s findings before the Provincial Cabinet of KPK through the chief secretary.
READ ALSO: KPEC project: World Bank flags implementation delays
Earlier, the committee was briefed on World Bank-funded road infrastructure projects in Khyber Pakhtunkhwa.
During the briefing, members expressed serious concern over alleged irregularities in the bidding process, observing that certain projects had been split into multiple packages to facilitate different contractors.
The committee also pointed to irregularities in NIT-I, NIT-II and NIT-III and questioned the use of the Single Stage One Envelope bidding method instead of the Single Stage Two Envelope procedure.
The committee chairman observed that the procurement approach had compromised transparency.
Officials of the Khyber Pakhtunkhwa Communication and Works Department informed the committee that financial bids were opened before the technical evaluation of the lowest bidder.
Members termed the practice inconsistent with the spirit of the Public Procurement Regulatory Authority (PPRA) Rules and established principles of transparent public procurement.
The EAD informed the committee that, following consultations with the World Bank, it was confirmed that the KPK Government had itself requested the adoption of the Single Stage One Envelope method due to the urgency of the project.
However Additional Secretary EAD Muhammad Saeed Ashraf Siddiqui admitted the fact that the findings of committee on bidding process are legitimate and the explanations and rationales given by the officials of Khyber Pakhtunkhwa are unsatisfactory.
The committee further expressed concern that a limited number of contractors had secured multiple contracts, raising questions about the integrity of the bidding process.
Taking serious notice of the matter, the chairman committee directed the EAD to write to the relevant authorities for a comprehensive inquiry.
He recommended strict legal action against those responsible, including recovery of any excess public funds paid due to inflated tender costs, and also advised the EAD to request the World Bank to declare the procurement a case of mis-procurement.
The committee also resolved to recommend that the federal government reduce reliance on foreign borrowing by discouraging new foreign-funded loan projects.
Reviewing the Karachi Mobility Project (BRT Yellow Line), the committee was informed that the project is scheduled for completion in December 2028 and that the Sindh Government plans to procure 250 electric buses under a Public-Private Partnership model.
The Chairman directed the authorities to ensure complete transparency and submit all proposals, including details of subsidies, to the Committee.
The committee was also briefed on the progress of the Akram Wah Canal Project. Members expressed concern over the non-provision of key project documents on grounds of confidentiality.
Officials explained that, under World Bank regulations, contract-related information cannot be shared until completion of the procurement process.
The chairman directed the authorities to submit a clear timeline for finalisation of the contract to enable the EAD to facilitate timely completion through coordination with the World Bank. He further emphasised strict internal scrutiny to ensure that no irregularities occur during the bid evaluation process.
The meeting was attended by Senator Haji Hidayatullah Khan, Senator Rana Mahmood Ul Hassan, Senator Syed Waqar Mehdi, Senator Rubina Khalid, Senator Kamran Murtaza, Senator Kamil Ali Agha, while Senator Dilawar Khan participated as a special invitee.
Copyright Business Recorder, 2026