The Asian Development Bank (ADB) has granted a final one-month extension for the disbursement of a $360 million loan for the Central Asia Regional Economic Corridor (Carec) Tranche-III project, which has already been delayed by nearly a year due to issues with the National Highway Authority (NHA).

 

In a recent letter, the ADB stated: “The ADB approves an extension of bid validity from March 6, 2026, to April 5, 2026 (for a period of 30 days). This shall be the last and final extension of bid validity. The NHA is requested to ensure that the contract award is completed within this extended period, as no further extension is envisaged by the ADB.”

 

The bank added: “Within the same period, the NHA is also requested to provide any new and material information justifying the delay for ADB’s review. In the absence of such information, or if the contract is not awarded within the extended bid validity period, the matter may need to be assessed as a potential non-compliance case, which could affect the financing of the contract and any subsequent procurement actions related to this package.”

 

Meanwhile, the Supreme Court (SC) dismissed a petition by the Public Procurement Regulatory Authority (PPRA) challenging the bidding process under which a joint venture of NXCC (Ningxia Communications Construction Group), Dynamic Constructor, and Rustam Associates was declared the successful bidder. The court endorsed the Islamabad High Court’s (IHC) findings regarding the procurement conducted by the NHA for the N-55 project.

 

The SC held that the verification of bids submitted by the three-firm joint venture and its credentials had been properly undertaken by the NHA and that no further verification was required. 

 

Earlier, the IHC had rejected PPRA’s petition against the Rs172 billion Carec Tranche-III award and warned that the regulator’s actions “may also lead to the refusal of the finance facility agreed by the ADB.”

 

Some five parliamentary standing committees had raised objections over the bidding process. The NHA maintained that all shortcomings had been addressed and the evaluation conducted according to prescribed criteria. 

 

Officials said average construction turnover, tax returns, and bank statements were adequately verified during the evaluation and no additional verification was required.

 

In earlier communications, the ADB had expressed concern that the $360 million (Rs108 billion) loan allocated for the Carec Development Investment Programme’s Tranche-III could lapse next year without project completion. 

 

A government source said there was growing recognition within official circles that amid the global oil and economic crisis, Pakistan should not miss the loan. The source added that a lapse could undermine the bank’s trust and confidence in Pakistan’s institutions.

 

The delay in utilising the loan has been attributed largely to the failure to start the Tranche-III road project, which was stalled due to disputes over the bidding process. Although bids were opened in February 2025 and approved by the ADB soon afterward, the process faced scrutiny from parliamentary panels and the PPRA.

 

The total project cost is estimated at Rs170 billion, including land acquisition, consultancy, and taxes, while the lowest bid by the joint venture stood at Rs147 billion. ECNEC (Executive Committee of the National Economic Council) has already approved the bids submitted by the joint venture. The ADB has confirmed it has no objection to awarding the contracts to the lowest bidder across the four lots.