Bids Canceled for Rs. 26 Billion Highway Project Between KP’s 2 Major Cities

A Senate committee has ordered the cancellation of bids for the Rs26 billion Nowshera–Chitral highway project in Khyber Pakhtunkhwa, citing serious irregularities in the procurement process.

The directive was issued during a meeting of the Senate Standing Committee on Economic Affairs, chaired by Saifullah Abro.

Bidding process declared null and void

The committee declared the bidding for the N-45 project invalid and directed the National Highway Authority to initiate a fresh process within 30 days.

Officials were instructed to ensure:

• Transparent financial and technical evaluation
• Use of a two-envelope bidding procedure
• Full disclosure of all relevant documents

Concerns over inflated bid

The controversy centered on the Kalatak–Chitral section (47.98 km), where a single bid submitted by M/s Sambu Engineering was found to be 224% higher than the engineer’s estimate.

The project, estimated at $93.7 million, is being financed through a Korean loan, with conditions favoring contractors from the lending country.

Questions over transparency

Committee members expressed dissatisfaction over:

• Non-disclosure of bidding documents
• Lack of company eligibility details
• Failure of NHA officials to address queries

The panel also questioned ongoing negotiations with Korean authorities to allow joint ventures with Pakistani firms.

Project delays under scrutiny

The committee highlighted significant delays, noting that the project was initiated in 2021, but work has yet to begin.

Concerns were raised that key sections, such as Timergara–Chakdara, critical for regional connectivity, remain neglected.

Sub-committee formed

A sub-committee has been established to review foreign-funded projects, focusing on:

• Budget utilization
• Causes of delays
• Accountability of responsible officials

Power sector concerns have also been raised

Separately, the panel sought records related to the auction of public-sector power plants and raised concerns about the Asian Development Bank’s policy of not financing coal-based projects, which has affected funding for initiatives such as the Jamshoro power project.