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Economic development

Consortium Seeks Senate Chairman's Intervention in Highway Expansion Project

Strategic Insights

— 1 min read

A consortium led by the state-owned Chinese firm Ningxia Communications Construction Co Ltd (NXCC) has written to Senate Chairman Syed Yousaf Raza Gilani, expressing concerns over a senator's attempts to obstruct the awarding of contracts for the N-55 highway expansion project. The project, which is part of the Central Asia Regional Economic Cooperation (CAREC) program, is crucial for regional connectivity and economic development in Pakistan. The consortium claims to have been declared the lowest bidder with a margin of Rs13.2 billion and has urged Chairman Gilani to protect the sanctity of the Senate from being used for "vested commercial interests."

Key Takeaways:

  • A consortium led by Ningxia Communications Construction Co Ltd has written to Senate Chairman Syed Yousaf Raza Gilani to stop a senator from obstructing the N-55 highway expansion project.
  • The project is part of the Central Asia Regional Economic Cooperation (CAREC) program and is crucial for regional connectivity and economic development in Pakistan.
  • The consortium claims to have been declared the lowest bidder with a margin of Rs13.2 billion after a transparent and Asian Development Bank (ADB)-approved process.
  • The senator is reportedly demanding that government officials reopen the concluded bidding process despite the ADB's No Objection Certificate (NOC) and the Federal Government's sovereign commitment to only engage a contractor acceptable to the lender.
  • The Chinese firm has accused the senator of misusing parliamentary privilege and public office, jeopardizing a nationally significant project and maligning dedicated public servants.
  • Delays in the project could impact Pakistan's credibility with international lenders and slow progress on critical infrastructure aimed at boosting trade and connectivity.

Statistics:

  • The N-55 CAREC project is worth Rs146 billion.
  • The consortium has a margin of Rs13.2 billion.
  • The project forms part of Pakistan's commitments under the Central Asia Regional Economic Cooperation (CAREC) program.
  • The Asian Development Bank (ADB) has issued a No Objection Certificate (NOC) for the project.

Sources:

  • A letter from NXCC-RA-DC Joint Venture to Senate Chairman Syed Yousaf Raza Gilani, dated August 26, 2025.
  • The Express Tribune article, "Consortium seeks Senate Chairman's intervention in highway expansion project", no date mentioned.

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