News Detail
Event Title: Senator Saifullah Abro, Chairman Senate Standing Committee on Economic Affairs presiding over a meeting of the committee at Parliament House Islamabad.
Event Date: 2026-05-04
NHA M-45 Project Bidding Declared Null and Void Over Irregularities, Took Serious Notice against M/o Power for not providing record of power plants auction
The meeting of the Senate Standing Committee on Economic Affairs was held today in Islamabad under the chairmanship of Senator Saifullah Abro. The meeting was attended by the Senators Syed Waqar Mehdi, Kamil Ali Agha, Haji Hidayatullah Khan and Rubina Khalid.
A meeting of the Senate Standing Committee was held to review the progress N-45, procurement of coal for fir coal-fired power projects and implementation of previous recommendations.
Chairman NHA briefed the Committee over the project of N-45 that comprises over three sections. The PC-I of the first section, from Chakdara to Timergara (38 km), has been submitted to the Planning Division. Second section of the project comprises over the patch from Kkhagram-Dir (43.39 km).
The third section, Kalatak–Chitral (47.98 km), has a project cost of USD 93.779 million and a single bid by M/s Sambu Engineering was received on August 6, 2024, and was opened on January 31, 2025, which found 224.24% higher than the engineer’s estimate. To avoid such expensive project, a re-bidding process was initiated on December 15, 2025, and three companies have submitted proposals and the matter is in discussion with Korean authorities.
The Economic Affairs Division (EAD) representative informed the Committee that the project is financed through a Korean loan, under which the lending country requires detailed evaluation and prefers execution through its own contractors. However, negotiations are underway with Korean authorities to allow a joint venture with a Pakistani company.
The Chairman Committee noted that the Committee had previously opposed the process and directed that the Economic Affairs Division must retain copies of all bidding documents. He further questioned the eligibility of the Korean company and expressed concern that NHA had failed to provide the required company profile, eligibility criteria, and bidding documents, despite earlier directions. Chairman NHA failed to address the queries of Committee, as the legal process has not been followed by the department. Consequently, Senate panel declared N-45 project bidding null and void over irregularities and directed NHA to initiate a fresh process within 30 days, ensuring both financial and technical evaluations through a two-envelope procedure.
The Committee was informed that first section of the road project, particularly Timergara and Chakdara, has not been started, whereas NHA is working over the far flung proceeding sections of the road. Senator Hidayatullah Khan observed that the Timergara and Chakdara road having the capacity to connect four districts; however, the tunnel in the area is in a highly deteriorated condition and requires urgent reconstruction.
Officials stated that the project initially covers the Chakdara–Timergara section, and the PC-I has already been prepared. It was further informed that the project involves foreign financing, and the procurement process alone takes approximately 350 days. The Committee expressed serious concern over the delay, noting that despite being initiated in 2021, the project has yet to commence. Committee also shown the concern over the absence of consultant during the Committee meeting.
It was also noted that after the recommendation of Committee in its meeting held on 13th April, 2026, NHA has written verification letters regarding the companies on 15th April, 2026, however these letters should be written before the bidding process to analyze the worth of said companies.
The Committee constituted a Sub-Committee to review all foreign-funded projects, including their budgets and causes of delay. The Chairman emphasized that officials responsible for delays must be held accountable.
The Chairman of the National Highway Authority (NHA) further briefed that in Khyber Pakhtunkhwa, the N-55 highway serves as a key link to Balochistan. He further informed that work on the Peshawar Northern Bypass is underway to improve traffic flow in the province. He appreciated the Committee’s support for Tranche-III projects.
Additionally, NHA presented updates on the Peshawar Northern Bypass (30.2 km) project. The Provincial Irrigation Department raised concerns about potential disruption to natural waterways. NHA officials responded that construction work is ongoing, including development of the approach road to Warsak.
The Chairman of the Committee stated that this was the 35th meeting of the Committee and observed with grave concern that irregularities amounting to billions of rupees had been identified across multiple projects. He noted that instances of over-invoicing were evident in nearly every project reviewed.
The Chairman further remarked that the tendering processes are being manipulated, resulting in substantial financial losses to the national exchequer. He reiterated that directions have already been issued for the establishment of a dedicated monitoring desk, along with the appointment of a senior-level officer to oversee its operations and ensure transparency in project execution.
The Committee was briefed on the Jamshoro Coal-Fired Power Project. Officials informed that the project has a total generation capacity of 660 MW. The project comprises two components, namely LOT-I and LOT-II, and the LOT-I is currently operating on imported coal and LOT-II has not been started to due to the obligation of carbon emissions. It was further stated that the Asian Development Bank (ADB) has adopted a policy of not financing coal-based power projects, which has impacted the availability of funding. Senator Kamil Ali Agha added that the plants can be shifted over environmentally friendly production raw materials.
The Committee directed the Power Division to submit comprehensive details of the bidding process for coal suppliers, along with auction records of the four GENCO (formerly WAPDA) power plants, within two days.