News Detail

Senate Economic Affairs Committee reviews WAPDA and NHA Projects, including major financial irregularities in CAREC Tranche - III and directed strict action against a provincial government official for non-compliance.

A meeting of the Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro, took a serious note of allegation of mis-conduct against an official of the Planning and Development Department, Government of Balochistan. The Committee ordered the immediate suspension of the officer. Senator Saifullah Abro revealed that an officer from Planning and Development Department, Government of Balchistan was non-cooperative with the Committee and openly defied directions for documentation. The Secretary of the Committee also confirmed that concerned officer refused to provide relevant documents.

The Secretary of the Planning and Development Department, Government of Balochistan  responded, “If the Committee allows, we will take action against the officer.”

Chairman Abro instructed decisively: “Take action today and immediately suspend this officer.” He further directed the official to “go out of the Committee room and get issuance of the suspension order.” The Secretary, Planning and Development Department, Government of Balochistan complied, and the suspension order was executed during the session.

Committee Reviews NHA’s Hiring of disqualified Construction Company (NXCC) in their own projects

The Committee also raised serious concerns about the hiring of a disqualified company for the CAREC Tranche - III project.

“It was reported in the newspaper published on 2nd July, 2025 that NHA has hired a disqualified company,” noted Senator Abro. He called for transparency in the process and asked, “Please explain the criteria used for hiring a company.” The Chairman, NHA clarified the Committee that it was not the press release issued by NHA rather questions had been raised with the NHA representative, and their responses were published in the newspaper. The Committee inquired about the action taken by NHA against the officer who gave a false statement. The Chairman, NHA assured the Committee that a written response will also be submitted to the Committee in this regard.

The Committee was briefed that lead partner will fulfill 50% of the annual construction turnover requirement which is required about Rs. 88 billion per year with cumulative including sum of Rs. 264 billion in last three years  for all LoTs while each JV partner will meet 30% of the average annual construction turnover. However, NHA informed the Committee that the lead partner had listed two projects, but NHA was unable to adequately address the Committee’s queries regarding those projects.

The Committee further noted that, according to local news reports on 14th July, 2025, a report related to the CAREC Tranche-III project has already been submitted to the Honourable Prime Minister by NHA. It recommended that NHA submit a copy of that report, along with a covering letter, to the Committee. The Chairman, NHA also mentioned that Ministry of Communications has already formed a Committee to look into the matter. The Committee recommended that NHA share the composition of this Committee with them. The Chairman Committee asked whether the facts and figures discussed in several meetings of the Senate Standing Committee on Economic Affairs and the Senate Standing Committee on Communications were included in the submitted report. He specifically inquired if it was mentioned that NXCC had been disqualified in several NHA projects, including the        Lodhran- Multan project. He also noted that a sub-committee had already been formed under the Senate Standing Committee on Communications to look into the matter. The Committee expressed serious concern over the absence of the Secretary, Ministry of Communications, and questioned who will take responsibility for addressing the irregularities, which were also documented in the approved Minutes of the meetings held on 16-06-2025 and 30-06-2025.

NHA officials explained that while non-performing contractors are generally not considered, “they are eligible if they meet the legal requirements.”

Senator Kamran Murtaza noted, “They worked according to the SOPs that NHA had,” adding, “We can make new criteria for the future - nothing can happen to what happened before.”

While discussing average annual construction turnover, the Committee was briefed that:

* Companies must demonstrate financial stability.

* Construction turnover and certified payments for the past three years are required.

The Chairman Committee inquired about the completed projects submitted by the lead partner, M/s NXCC, in the CAREC Tranche-III project. He recommended that NHA share copies of the work orders issued to both the lead and joint venture (J.V.) partners, along with details of the payments made by the department and completion certificates.

The Managing Director of PPRA also briefed the Committee that final hearing related to the CAREC Tranche-III project is scheduled for tomorrow. He added that verification of the documents submitted by NHA is currently in process and the matter is expected to be concluded by PPRA next week. The Committee recommended that NHA provide details of the technical experience, key activities, and financial criteria required as per the Asian Development Bank (ADB)’s bidding documents. The Chairman, NHA also informed the Committee that matter is currently under consideration by PPRA, and the department has already formed a committee to look into it. However, the Committee expressed serious concern over why NHA has not yet suspended the procurement process, even though PPRA had already done so based on the Committee’s recommendation. The MD, PPRA also informed the Committee that PPRA has still not received the work orders, completion certificates, verified payments, and other relevant documents from NHA. The Chairman Committee was surprised, questioning how PPRA could assess the case without these essential documents, which are fundamental for verifying the eligibility of any bidder.

After detailed discussions, the Committee concluded that average annual turnover required for M/s Dynamic Constructors (DC), who participated in Lot-II, Lot-III, and Lot-IV, is required in tender documents about Rs. 14.67 billion over the last three years, bringing the cumulative total to around Rs. 45 billion. For the other JV partner, M/s Rustam Associates (RA), who participated in Lot-I and Lot-IV, the average annual turnover is required about Rs. 7.8 billion, with a cumulative total of about Rs. 24 billion over the same period.

The Committee further recommended that NHA submit a tabular list of ongoing and completed projects of both companies M/s Dynamic Constructors (DC) and M/s Rustam Associates (RA). The list should include the name of each project, work orders, completion certificates, verified payments, initial costs, completion costs, current progress, supporting bank statements, submitted FBR returns, and tax return certificates issued by relevant departments, along with details of released payments. The NHA assured the Committee that required information will  be submitted by next week.

WAPDA Briefs Committee on Major Hydropower Projects Amid Security Concerns

The WAPDA team updated the Committee on five major dam projects underway with international cooperation. The Dasu Hydropower Project was a focal point. The Officials informed that:

In Phase I, Dasu will generate 2,160 MW from six units.

The dam will store 1.14 million acre-feet of water.

Total cost: Rs. 1,737 billion.

Completion is expected by November 2028.

26% physical and 33.5% financial progress has been achieved.

Security of Chinese workers was also a major concern. “There are currently 700 Chinese workers on the site,” officials reported. “SOPs have been tightened after the recent attacks.”

“There is a lot of Chinese movement for the Dasu Dam project,” they added, confirming that “roads have to be closed and specific routes arranged” for safety.

Senator Kamran Murtaza raised a key issue, asking, “Have the Chinese said that we do our own security?”

Officials responded, “Once in 2024, the Chinese had said that they do their own security.”

“This time has also come - foreigners are asking to do their own security,” Senator Murtaza warned. The Committee was also informed that there no work started on 765kV transmission line in Dasu-Mansehra section.

While discussing the Mohmand Dam project, the Committee recommended that Water Resources Division provide the bidding documents of all hydropower projects to the Committee

The Committee vowed to maintain strict oversight and hold institutions and individuals accountable to ensure transparency, effective planning, and secure infrastructure development across Pakistan. The meeting was attended by Senators Syed Waqar Mehdi, Haji Hidayatullah Khan, Falak Naz, Kamran Murtaza, Rahat Jamali, and Kamil Ali Agha.    

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