Massive irregularities in WB funded projects in KPK, contracts awarded to disqualified firms

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‎ISLAMABAD: A meeting of the Senate Standing Committee on Economic Affairs was held at Parliament House under the chairmanship of Senator Saifullah Abro to review foreign-funded development projects in Khyber Pakhtunkhwa, the Karachi Mobility Project (BRT Yellow Line), and the Akram Wah Canal Project.
‎ ‎The meeting was attended by Senator Haji Hidayatullah Khan, Senator Rana Mahmood Ul Hassan, Senator Syed Waqar Mehdi, Senator Rubina Khalid, Senator Kamran Murtaza, Senator Kamil Ali Agha, while Senator Dilawar Khan participated as a special invitee.
‎ ‎The Committee was briefed on World Bank-funded road infrastructure projects in Khyber Pakhtunkhwa. During the briefing, members expressed serious concern over alleged irregularities in the bidding process, observing that certain projects had been split into multiple packages to facilitate different contractors. The Committee also pointed to irregularities in NIT-I, NIT-II and NIT-III and questioned the use of the Single Stage One Envelope bidding method instead of the Single Stage Two Envelope procedure.
‎ ‎The Committee observed that the procurement approach had compromised transparency. Officials of the Khyber Pakhtunkhwa Communication and Works Department informed the Committee that financial bids were opened before the technical evaluation of the lowest bidder. Members termed the practice inconsistent with the spirit of the Public Procurement Regulatory Authority (PPRA) Rules and established principles of transparent public procurement.
‎ ‎The Economic Affairs Division (EAD) informed the Committee that, following consultations with the World Bank, it was confirmed that the Khyber Pakhtunkhwa Government had itself requested the adoption of the Single Stage One Envelope method due to the urgency of the project.
‎ ‎The Committee further expressed concern that a limited number of contractors had secured multiple contracts, raising questions about the integrity of the bidding process. Taking serious notice of the matter, Chairman Committee Senator Saifullah Abro directed the Economic Affairs Division to write to the relevant authorities for a comprehensive inquiry. He recommended strict legal action against those responsible, including recovery of any excess public funds paid due to inflated tender costs, and also advised the EAD to request the World Bank to declare the procurement a case of misprocurement.
‎ ‎The Committee also resolved to recommend that the Federal Government reduce reliance on foreign borrowing by discouraging new foreign-funded loan projects. The Chairman directed the EAD to arrange a meeting with the World Bank Country Director to discuss the Committee’s observations and urged the Chief Minister of Khyber Pakhtunkhwa to take immediate notice of the matter. He also directed EAD to place the Committee’s findings before the Provincial Cabinet through the Chief Secretary.
‎ ‎Reviewing the Karachi Mobility Project (BRT Yellow Line), the Committee was informed that the project is scheduled for completion in December 2028 and that the Sindh Government plans to procure 250 electric buses under a Public-Private Partnership model. The Chairman directed the authorities to ensure complete transparency and submit all proposals, including details of subsidies, to the Committee.
‎‎The Committee was also briefed on the progress of the Akram Wah Canal Project. Members expressed concern over the non-provision of key project documents on grounds of confidentiality. Officials explained that, under World Bank regulations, contract-related information cannot be shared until completion of the procurement process. The Chairman directed the authorities to submit a clear timeline for finalization of the contract to enable the Economic Affairs Division to facilitate timely completion through coordination with the World Bank. He further emphasized strict internal scrutiny to ensure that no irregularities occur during the bid evaluation process. Ends