The Asian Development Bank (ADB) has granted Pakistan a critical final extension, setting an April 5, 2026 deadline for the disbursement of a $360 million ADB loan Pakistan allocated to the Central Asia Regional Economic Corridor (Carec) Tranche-III project. This urgent ultimatum follows significant delays, primarily due to procurement issues involving the National Highway Authority (NHA). Failure to secure the contract award within this 30-day window could lead to the loan's forfeiture.

Final Extension Signals Critical Juncture for ADB Loan Pakistan

The ADB's recent communication explicitly states that this one-month grace period, extending bid validity from March 6 to April 5, 2026, represents the absolute final opportunity. The bank insists the NHA must finalize the contract award within this timeframe, emphasizing that no further extensions will be considered.

Additionally, the NHA is required to furnish any new, substantial information explaining the prolonged delays for the ADB's review. Without a contract award or sufficient justification, the situation could escalate into a non-compliance case, potentially jeopardizing the project's financing and subsequent procurement actions.

Official sources within the government acknowledge the immense pressure to utilize this $360 million ADB loan Pakistan. Losing this vital funding amid ongoing global economic challenges could severely impact the bank's confidence in Pakistan's institutional capabilities.

Supreme Court Clears Path for Carec Project Bidding

The Supreme Court has recently dismissed a petition filed by the Public Procurement Regulatory Authority (PPRA), which had challenged the bidding process for the Carec Tranche-III project. This ruling upholds the Islamabad High Court's earlier findings regarding the NHA's procurement procedures for the N-55 project.

The Supreme Court confirmed that the NHA had properly verified the bids and credentials of the successful joint venture, comprising NXCC, Dynamic Constructor, and Rustam Associates. This decision effectively removes a major legal obstacle that had contributed to the project's year-long delay.

Previously, the Islamabad High Court had also rejected PPRA’s challenge against the Rs172 billion Carec Tranche-III award, warning that the regulator's actions could jeopardize the ADB's financial facility. Despite earlier objections from several parliamentary standing committees, the NHA has consistently affirmed that all evaluation criteria were met and shortcomings addressed.

The total estimated cost for the project stands at Rs170 billion, encompassing land acquisition, consultancy, and taxes. The joint venture's lowest bid was recorded at Rs147 billion. The ADB has previously confirmed it holds no objections to awarding contracts to the lowest bidder across the project's four lots.

Source: Dawn - Home