ISLAMABAD: Pakistan risks losing a $360 million loan from the Asian Development Bank for an international highway project if a final decision is not taken before the April 5 disbursement deadline, with approval now pending from Prime Minister Shehbaz Sharif.
Officials said the project, part of the Central Asian Regional Economic Cooperation (Carec) Tranche-III programme, has already faced delays of nearly a year due to issues in the procurement process. The National Highway Authority is awaiting the prime minister’s direction on whether to proceed with awarding the contract.
The contract award process had been paused after concerns raised by parliamentary committees. However, authorities said those issues have since been addressed, with approvals secured from the Executive Committee of the National Economic Council, the Islamabad High Court and the lender.
The ADB has issued a final one-month extension and warned that April 5 is a non-extendable deadline. It has asked for justification of delays, cautioning that failure to award the contract within the validity period could lead to non-compliance and jeopardise financing.
The project involves the construction of four road sections under the Carec programme, including Rajanpur–Jampur (58km), Jampur–D.G. Khan (64km), D.G. Khan–Tibbi Qaisrani (112km) and Tibbi Qaisrani–DI Khan (96km).
Officials said a joint venture of NXCC, Dynamic Constructor and Rustam Associates has been declared the lowest bidder, with its credentials verified by the NHA. The Supreme Court of Pakistan has upheld the procurement process, endorsing earlier findings of the Islamabad High Court after dismissing a petition filed by the Public Procurement Regulatory Authority.
The ADB has also conveyed no objection to awarding contracts to the lowest bidder across all four project lots.
The delay comes at a time when Pakistan is facing external pressure from rising oil prices linked to the Gulf conflict, which has increased the import bill by an estimated $1.5 billion, adding urgency to infrastructure financing and external support.
