ISLAMABAD: The China’s Ningxia Communications Construction (NXCC) consortium has approached the Special Investment Facilitation Council (SIFC), seeking intervention over the delay in awarding the multibillion-rupee Tranche-III (Rajanpur–DG Khan–DI Khan) section of the Central Asia Regional Economic Cooperation (CAREC) project.
The consortium has said that the delay follows “propaganda” from disqualified competitors in the National Highway Authority’s (NHA) bidding process.
The NXCC consortium — comprising local partners Rustam Associates and Dynamic Constructors — wrote to SIFC Director-General Maj-Gen Asad Ur Rehman Cheema, expressing concern over the project’s fate despite clearances from all relevant forums.
Tranche-III is part of the USD 471.9 million CAREC project, financed through a USD 360 million Asian Development Bank (ADB) loan and USD 111.9 million from the Government of Pakistan. It involves upgrading the 326-kilometre Rajanpur–Dera Ghazi Khan–Dera Ismail Khan section of the Indus Highway (N-55) with climate-resilient features and NHA capacity-building components.
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The consortium urged the SIFC to ensure the project is awarded without delay, in line with ADB and government approvals, and to prevent “misuse of parliamentary platforms for commercial interests.”
“We remain fully committed to mobilizing and delivering this vital project before the loan closing date, ensuring 100 per cent utilization and timely completion,” wrote Zou Yongchao, the authorized representative of NXCC-RA-DC JV.
According to the consortium, tenders were floated in July 2024 and bids submitted in August 2024. Following a rigorous international procurement process, their bid emerged as the lowest across all four lots, offering Pakistan savings of nearly Rs13.2 billion compared with the second-lowest bidders. The ADB reviewed the process and issued its No-Objection Certificate (NOC) in April 2025, it said.
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The award was subsequently endorsed by the NHA Executive Board, the Central Development Working Party (CDWP), and even formally inaugurated by Prime Minister Shehbaz Sharif in February 2025, the letter said.
Despite these clearances, the project has stalled amid objections raised by losing bidders, reportedly linked to some senators. The consortium alleged that these firms are leveraging political influence to push for re-tendering, which could delay the award until 2027 and risk expiry of the loan, scheduled to close in November 2027.
The letter also cites the involvement of Senator Saif Ullah Abro through the Senate Standing Committee on Economic Affairs, which flagged allegations of collusion and document manipulation. However, the consortium questioned Senator Abro’s impartiality, pointing to his dual role as both regulator and competitor in the construction sector.
Warning of serious consequences, the consortium said further delays could wipe out 25–30 per cent of project funds, raise costs, and send a “negative signal” to foreign investors. “If even after winning fairly, with ADB’s approval and the prime minister’s inauguration, a project can still be blocked, how can foreign companies feel secure investing in Pakistan?” the letter asked.
The consortium contrasted its own track record, citing successful delivery of the Gilgit–Shandur project and partnerships with NHA and WAPDA, against what it described as the poor performance of rival firms in previous ADB-funded projects.