The Senate Standing Committee on Communications has expressed concerns over apparent favoritism in the awarding of contracts by the National Highway Authority (NHA) and recommended initiating an inquiry against the department responsible for extending undue favor in the tendering process.
During a meeting held under the chairmanship of Senator Prince Ahmed Umer Ahmedzai on Wednesday, the committee emphasized the impact of rates and a significant increase in dollars resulting from a process of retendering.
The committee’s focus was on the Sailkot-Khariyan Motorway project, with the member of the Public Private Partnership (PPP) from NHA briefing the committee. The PPP member informed the committee that the Executive Committee of the National Economic Council (ECNEC) had approved a PC-I worth Rs 43.382 billion for the project. Several entities, including Zahir Khan 7 Brothers (ZKB) EGC, Techno+Matracon Consortium ACC, and FWO+SMC JV Zeeruk, participated in the bidding process.
The FWO-SMC JV proposed a total NHA revenue share of Rs. 8.504 billion, while Techno-Matracon’s revenue share amounted to Rs. 7.360 billion. Techno-Matracon’s bid was declared non-conforming due to the unequal annual installments quoted in the Bid for Operational Viability Gap Fund (VGF), which did not align with the RFP requirement of equal annual installments.
The committee raised concerns about disqualifying Techno-Matracon based solely on the pretext of unequal installments. When the matter of disqualifying Techno-Matracon as a potential bidder was taken up by the grievance committee, no decision in favor of Techno-Matracon was reached.
The NHA authority provided an explanation to the committee, stating that the contract was awarded in accordance with the conditions of the concession agreement. However, the committee expressed dissatisfaction with the NHA’s response, suggesting that NHA may have displayed favoritism towards the FWO-SMC JV.
Consequently, the committee recommended initiating an inquiry against the department responsible for extending undue favor in the tendering process. The committee also stressed the importance of prioritizing investor benefits over contractor interests when issuing tenders. The committee chair emphasized their commitment to the larger interests of the country, advocating for the implementation of fair and just decisions.
