By Abdul Ghani

The Ministry of Communications has engaged the Ministry of Foreign Affairs for verification processes regarding a foreign-funded road project after the unusually high initial bid price prompted the National Highway Authority (NHA) to reinitiate the procurement process, according to an official document available with Wealth Pakistan.

The document reveals that the approximately 47.98 kilometres road project involves a loan component of $93.77 million (Rs26.26 billion). The initiative is part of broader efforts to upgrade critical road infrastructure in northern Pakistan, particularly in Khyber Pakhtunkhwa.

However, the procurement process encountered a significant hurdle when only a single bid was submitted, and that too was 224% higher than the engineer’s estimate. This raised serious concerns over cost competitiveness and transparency, prompting authorities to reconsider the bidding process.

Following this development, the Korea Exim Bank, a key financing partner for the project, reviewed the bid price and subsequently recommended annulment of the initial bidding process, paving the way for the NHA to proceed with fresh tenders in line with international procurement standards.

Given the involvement of foreign contractors and international financial institutions, the Ministry of Foreign Affairs has been taken on board to ensure that all procedures align with diplomatic protocols and Pakistan’s international obligations under the loan agreement. The ministry’s role is particularly important in maintaining coordination with external stakeholders and avoiding any contractual or diplomatic complications.

Meanwhile, the NHA has also sought legal advice from the Ministry of Law and Justice as well as the Economic Affairs Division regarding the disclosure of procurement-related information. This comes in response to queries raised by a parliamentary committee seeking greater transparency in the project’s execution.

The project includes components such as detailed design, procurement assistance, and construction supervision, all being carried out by a consortium of international and local consultants. The Chakdara-Chitral Road project is considered vital for improving regional connectivity and is expected to boost trade, tourism, and economic integration upon completion.

Credit: INP-WealthPk