ISLAMABAD, Jun 17 (APP):The Senate Standing Committee on Economic Affairs, on Tuesday convened to review the Central Asia Regional Economic Cooperation (CAREC) Corridor Development Investment Program – Tranche 3.
The meeting of Senate Standing Committee on Economic Affairs, chaired by Senator SaifullahAbro, convened today in Islamabad to review the Central Asia Regional Economic Cooperation (CAREC) Corridor Development Investment Program – Tranche 3, along with bilateral and multilateral development projects undertaken by the Provincial Government of Khyber Pakhtunkhwa in collaboration with UN agencies and international development partners.
The meeting was attended by Senators Syed Waqar Mehdi, Haji Hidayatullah Khan, FalakNaz, and RahatJamali.
The committee was given a comprehensive briefing on the CAREC Tranche-3 project, which spans over 330 kilometers, covering the Rajanpur–Dera Ghazi Khan–Dera Ismail Khan corridor. Although the project was approved in 2020, implementation has yet to commence.
The total estimated cost is Rs. 85 billion, comprising a 121.5 km stretch from Rajanpur to D.G. Khan with six bypasses, and a 208.2 km section from D.G. Khan to D.I. Khan with five bypasses.
Officials from the National Highway Authority (NHA) informed the committee that a consultancy firm had been hired to finalize the bidding procedures for the project. In response, the Chairman directed the NHA to submit a detailed report outlining the standard procedure followed for hiring consultancy firms.
While discussing the tendering of Lot-1 (Rajanpur–Jampur section, 58 km), it was disclosed that six companies had submitted bids, out of which five were technically qualified. The committee expressed serious concerns over the award of the contract to a company that had previously failed to complete the Multan – Lodhran project, valued at Rs. 6 billion.
Senator SaifullahAbro questioned the rationale behind awarding a Rs. 172 billion project to a company with a history of non-performance.
The Chairman further ordered that strict action be taken against both the NHA and the Grievance Redressal Committee (GRC) for their alleged role in manipulating the contract award process. He instructed that matter be referred to the Federal Investigation Agency (FIA), National Accountability Bureau (NAB) for necessary legal action against the reported violation of rules.
The members voiced deep dissatisfaction over the NHA’s apparent negligence in awarding such a critical infrastructure project to a disqualified bidder. The Chairman Committee directed the NHA to submit the complete bidding details of CAREC- II and CAREC- III projects along with number of bidders participated (both qualified & disqualified) within two days to the Committee. He also criticized the absence of the Secretary, M/o Communications, stating that Committee cannot operate effectively without the presence of senior representatives from key implementing departments. The officials were unable to brief and satisfy the Committee.
Senator Abro highlighted that several complaints had been received regarding ADB funded road projects in the D.I. Khan region.
He emphasized the consistent oversight of all projects sponsored by the World Bank and Asian Development Bank. After a detailed discussion, the Committee concluded that the NHA Board, in its meeting held on January 6, 2023, had determined that company was not eligible to apply for the project. Notably, the decision to terminate the company’s contract had already been taken by the NHA Board on December 23, 2022.
The Committee expressed concern over how the NHA had previously allowed the company to commence work on the CAREC-II project, despite having achieved only 8% progress on a contract worth Rs. 6.8 billion.
It further questioned how the same company was again favored and deemed qualified for the CAREC-III project, valued at Rs. 172 billion.
The Committee also discussed the implementation status of the recommendations made during its previous meetings regarding the EAD and its related department, the Power Division, including NTDC projects. After detailed deliberations, the Committee recommended that the Power Division take action against the officials involved in awarding the contract for ADB 401B-2022 Lot-IIA (ACSR Bunting Conductor) to the third lowest bidder.
The Committee further recommended that Power Division provide a copy of the inquiry report prepared by the three-member Inquiry Committee, headed by Muhammad Ali, former Caretaker Federal Minister for Energy (Power Division), pertaining to the fact-finding investigation of the ADB 401B-2022 Lot-IIA tender. Additionally, the Committee recommended the Power Division to write a letter to the Special Assistant to the Prime Minister on Power and share a copy of the letter with the Committee.
The Power Division was also directed to write to the FIA and NAB regarding the issuance of fake letters by the Engineering Development Board (EDB) in relation to the ADB 401B-2022 Lot-IIA (ACSR Bunting Conductor) tender.
The Committee was also briefed by the Special Secretary, M/o Economic Affairs on projects undertaken in Khyber Pakhtunkhwa province with the support of multilateral, bilateral, and UN agencies. It was informed that due to favorable exchange rates, the province had received additional funds to compensate for the increased costs of ongoing projects.
Senator Haji Hidayatullah Khan remarked that many projects in Khyber Pakhtunkhwa remain incomplete and delayed due to inefficiencies within the executing departments. In response, provincial representatives stated that many projects are near to completion and would require additional funds and time for completion.
Various departmental officers from Khyber Pakhtunkhwa provided updates on the progress of development projects in regions including Balakot, Peshawar, Hazara, and Malakand. With respect to German funded initiatives, it was reported that a delay of approximately five months had occurred due to land acquisition issues.
The Forest Department briefed the Committee on the German-sponsored Billion Tree Plantation Program, being implemented in various villages across Khyber Pakhtunkhwa, including Peshawar, Hazara, and Malakand.
Officials highlighted the need for a robust Management Information System (MIS) to monitor and protect plantation sites, particularly in remote areas. Additionally, representatives informed the committee that with the cooperation of the Saudi government, several infrastructure and health sector projects including roads, schools, hospitals, and a thalassemia center have been successfully completed in the Swat area.
Regarding the upcoming road sector schemes in Khyber Pakhtunkhwa, the Chairman Committee recommended that the Planning and Development Department of Khyber Pakhtunkhwa review Lot 4 (TibiQaisrani to D.I. Khan Section – 96.245 km) of the CAREC-III project and refrain from awarding the contract due to identified irregularities.
The Committee also recommended that a comprehensive report be submitted, detailing all incoming projects from the last five years, including the names of companies that applied – both those that qualified and those that were disqualified. The
Committee expressed serious concern over reports that certain Project Directors were soliciting bribes from stakeholders and urged the department to take immediate and appropriate disciplinary action against those involved.
In conclusion, the committee expressed its dissatisfaction with the lack of compliance with its earlier directives and strongly urged all relevant authorities to ensure their immediate and effective implementation.
