765kV Dasu-Islamabad project: NAB, FIA may probe irregularities
ISLAMABAD: The Senate Standing Committee on Economic Affairs has raised questions over prolonged procurement delays, escalating costs and alleged violations of bidding requirements in foreign-funded projects, warning that irregularities in the 765kV Dasu-Islamabad transmission line project could be referred to the National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA) for investigation.
The Committee also expressed serious concern over delays in the procurement process, significant increases in project costs and the need for greater transparency and accountability in the execution of foreign-funded development projects, particularly the Lahore Wastewater and Drainage Management Project.
The meeting was attended by Senators, Haji Hidayatullah khan, Rana Mehmoodul Hassan, Syed Waqar Mehdi and senior officials from the relevant ministries and departments.
During consideration of the agenda item concerning foreign-funded projects of the Water and Sanitation Agency (WASA), Punjab, from 2008 to date, the Secretary, Housing, Urban Development and Public Health Engineering Department, Government of Punjab, briefed the Committee that four projects that had previously faced delays were no longer held up. They explained that changes in governments and other administrative factors had affected the progress of these projects.
He further briefed that Lahore Wastewater and Drainage Management Project includes sewerage infrastructure from LARECHS Colony to Gulshan-e-Ravi was intended to improve the existing sewerage system and that the infrastructure required careful planning and technical assessment.
The Committee was briefed on the chronology of hiring the Project Management Consultant/Owner’s Engineer through the Quality and Cost-Based Selection (QCBS) method. During the detailed deliberations on the consultant hiring process, the Chairman of the Committee asked the Project Director, WASA Lahore, to present the Terms of Reference (ToRs) of the Consultant.
However, the Project Director was unable to provide the requisite details to the Committee. The Chairman questioned why the consultancy hiring process had taken more than two years and sought an explanation for the delay. However, the official failed to provide a satisfactory explanation. The Chairman Committee emphasised that prolonged procurement and implementation processes could substantially increase project costs and place an additional burden on public finances.
He recalled that a sub-committee had been constituted to examine the reasons behind delays in development projects and stressed the need to identify bottlenecks and ensure timely completion.
The Chairman Committee also sought clarification regarding the consultancy contract, the approved TORs, the bidding documents, the evaluation criteria and the responsibilities assigned to the consultant. Officials stated that the consultant was required to provide the design within six months of mobilisation, which took place in June.
The Committee was further briefed that whether the consultant had fulfilled its contractual obligations and Chairman Committee directed the concerned authorities to submit the relevant record, including the consultant’s experience certificates and documents demonstrating compliance with the prescribed procurement criteria.
Expressing concern over the substantial escalation in project costs, the Chairman observed that projects initially planned at comparatively lower costs could become significantly more expensive when implementation was delayed. He stressed that foreign-funded projects must not be allowed to proceed without effective oversight merely because their financing comes from external sources. He called for a thorough assessment of project costs, procurement decisions and implementation timelines to protect the public interest.
During the discussion on the eligibility criteria for hiring the Project Management Consultant/Owner’s Engineer, the Committee inquired whether the documents submitted by the participating firms, including experience certificates, had been duly verified through the respective embassies and whether the prescribed procedures had been followed.
The Project Director informed the Committee that the tender documents provided for the Apostille verification process and that the Department had followed the prescribed procedure. However, he was unable to present the requisite documentary evidence to substantiate the verification process before the Committee.
Accordingly, the Committee recommended that department provide comprehensive details of the due diligence and verification procedures followed during the hiring of the Consultant, along with the relevant documentary evidence, before the next meeting.
The Chairman called for improved coordination between the Economic Affairs Division and the concerned executing agencies, noting that the Economic Affairs Division’s role should extend beyond processing requests received from departments. He stressed that potential delays, cost escalations and procurement-related concerns must be identified and addressed through timely coordination and effective monitoring.
He observed that country was already burdened with debt then why the allocation of Rs900 million to Members of the National Assembly (MNAs) at a time when the government was implementing austerity measures and reducing expenditures. Referring to the prevailing economic situation, he stressed the need to ensure that public funds were utilised prudently and in accordance with national priorities.
During the proceedings regarding the procurement process for the Faisalabad projects, officials explained that the tendering period had been extended by one month to encourage maximum participation and attract a greater number of bidders. They stated that the procurement process required bidders to submit their technical and financial proposals simultaneously.
Officials further informed the Committee that a bidder from Gilgit-Baltistan had raised a complaint regarding the evaluation of its bid.
The matter was examined through two to three hearings. However, the bidder was ultimately disqualified during the third hearing. Subsequently, only a single bid remained, prompting the authorities to consider re-tendering the project.
Officials described the Lahore Wastewater and Drainage Management Project as an important initiative aimed at improving the city’s sewerage and drainage infrastructure, particularly in view of the severe difficulties experienced during flooding. They noted that the project had originated in 2019 and was expected to provide significant benefits to Lahore by improving the existing drainage system and mitigating flood-related challenges.
Furthermore, during deliberations on the release of due and outstanding payments to the executing agency for Lots I to IV of the 765kV Dasu-Islamabad Transmission Line Project to ensure the timely completion of the project, the Committee took serious notice of the absence of the Secretary, Ministry of Finance and Revenue, from the meeting.
The Chairman also expressed serious concern over the changes made to the type-testing procedure prescribed under the bidding documents for the 765kV Dasu-Islamabad Transmission Line Project, terming the deviation a serious violation of the approved bidding requirements. It was further noted that original list of laboratories had subsequently been expanded by eight laboratories, including five that were already on the existing list, raising concerns regarding the justification and transparency of the revision.
The Chairman emphasised that all testing arrangements must be transparent, technically justified, and strictly in accordance with the approved bidding documents, stressing that public funds must be safeguarded against waste and avoidable expenditure.
He directed the concerned authorities to provide a clear explanation for the modification of the prescribed testing criteria and cautioned that any irregularities or procedural violations identified in the matter could lead to its referral to the National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA) for further investigation.
The Convener of the Sub-Committee, Senator Syed Waqar Mehdi, presented the Sub-Committee’s report and briefed the Committee on its key findings and recommendations. While reviewing the implementation of foreign-funded projects, expressed serious concern over persistent delays across provinces, particularly in relation to projects involving the National Highway Authority (NHA).
The Chairman observed that repeated delays had not been adequately justified and stressed that ongoing projects must be completed before new projects are undertaken. He sought details of the findings and recommendations of the High-Level Steering Committee constituted by the Prime Minister and emphasised the need for effective monitoring, clear responsibility and timely implementation. Officials of the Ministry of Economic Affairs informed that foreign financing was sought in response to the requirements communicated by the concerned departments, while issues such as land acquisition could affect project implementation.
The Committee while adopting the report of the Sub-Committee stressed that concerned departments must demonstrate ownership of foreign-funded projects and proposed establishing a dedicated monitoring desk to oversee their progress and strengthen scrutiny of procurement processes. It also recommended that copies of bidding documents be shared with the Ministry of Economic Affairs to facilitate comparative assessment, promote transparency and discourage unjustified cost escalations.
Observing that effective scrutiny could help reduce project costs and prevent unnecessary expenditure, it emphasised that proposed monitoring mechanism should be supported by appropriate staffing and clear responsibilities.
Copyright Business Recorder, 2026