Pakistan Senate Committee Rejects Multi-Billion Highway Bids Amidst Cost Concerns and Lack of Competition

In a decisive move signaling a strong stance against inflated costs and a lack of competitive bidding, Pakistan’s Senate Standing Committee on Communications has outright rejected all tenders for the crucial CAREC Corridors 5 and 6 Enhancement Project. This ambitious initiative, aimed at constructing a 100-kilometer, four-lane highway linking Peshawar to Torkham, now faces an uncertain future after committee members deemed the received bids "excessively high" and criticized the absence of genuine competition.

The project, a vital artery for regional trade and connectivity, is slated to be financed by the Asian Development Bank (ADB) and carries an estimated price tag of a staggering Rs42.5 billion (approximately $153 million).

However, the committee's scrutiny revealed a troubling scenario: out of multiple initial bids, only one contender managed to qualify after the technical evaluation, raising serious red flags about the integrity and fairness of the bidding process.

Prince Omar Ahmedzai, the impassioned Chairman of the committee, minced no words in expressing his profound concerns.

He unequivocally stated that the bids were simply "too high" and lacked the robust competition essential for ensuring value for public money. "We cannot allow such a vital project to proceed under conditions that suggest a lack of transparency and an inflated price tag," Ahmedzai declared, urging the National Highway Authority (NHA) to immediately rebid the project to attract more competitive offers and ensure a fair process.

Adding to the committee’s apprehension was the stark discrepancy between the NHA’s initial project estimate of Rs25 billion and the lowest bid received, which soared to Rs42.5 billion.

This nearly 70% increase in projected costs ignited heated discussions, with Senator Danesh Kumar vocalizing broader concerns about endemic cost overruns and project delays that plague Pakistan's infrastructure landscape. He pointed to the ongoing woes of the Sukkur-Hyderabad Motorway as a cautionary tale, emphasizing the critical need for rigorous oversight from the outset.

Beyond the CAREC highway, the committee's robust session delved into a myriad of pressing issues impacting the nation's road networks.

Members highlighted the alarming scarcity of proper services and rest areas along existing motorways, particularly stressing the need for better facilities for travelers. Furthermore, the absence of comprehensive CCTV camera systems on these critical arteries was flagged as a significant oversight, impeding accident monitoring and effective management of speeding violations.

The discussion also turned to the slow progress of key infrastructure projects in Balochistan, specifically the Zhob-D.I.

Khan (N-50) and Kuchlak-Khuzdar (N-25) initiatives. The NHA clarified the challenges, primarily attributing delays to funding constraints. Similarly, the committee expressed frustration over the incomplete M-8 Motorway (Hoshab-Awaran-Khuzdar), which continues to languish due to a combination of security challenges and persistent funding shortfalls.

The Senate Committee's assertive rejection of the CAREC highway bids sends a clear message: transparency, competition, and fiscal prudence will be paramount in all future infrastructure endeavors, signaling a renewed commitment to safeguarding public resources and ensuring timely, cost-effective development.