ISLAMABAD: The Asi­an Development Bank (ADB) has expressed concern that a $360 million (Rs108 billion) loan earmarked for the Central Asia Regional Economic Cooperation Corridor (Car­ec) Development Inve­stment Programme’s Tran­che III could lapse next year without project’s completion. The significant delay in utilising the loan is mainly due to the failure of the Tranche III road project to begin, resulting from controversies in the bidding process discussed in five parliamentary standing committee meetings. Without immediate acc­ele­ration by the National Highway Authority (NHA), the funds will expire without the completion of the Tranche-III road project, which involves widening sections of the N55 Highway. In a letter seen by Dawn , the ADB warned the economic affairs division that based on current progress, there was a significant risk the approved $360m under the Multi-tranche Finan­cing Facility (MFF) would not be fully utilised by the expiration date of Dec 31, 2027. The project has been stalled for eight months following controversies surrounding the bidding process. Although bids were opened in February 2025 and approved by the ADB shortly thereafter, the process faced scrutiny from five parliamentary panels and Public Procurement Regulatory Authority. Despite the administrative hurdles, the Islamabad High Court recently ordered that work be awarded without further delay. The court noted that continued stalling could result in loan cancellation, cost escalation and “serious reputational damage” to the national exchequer. The total of the project cost is estimated at Rs170bn, which includes land acquisition, consultancy and taxes while the lowest bid received by the NHA for the project was of Rs147 billion. The ADB covers Rs108bn of the total, with the government of Pakistan funding the remaining balance. Officials indicate the NHA is in a difficult position regarding fund utilisation. Rebidding is considered unfeasible, as obtaining new approvals from the ADB and Ecnec would take more time, while the ADB stressed that its 2027 deadline is “firm, with no possibility of extension”. “We seek EAD’s support in assisting NHA to expedite implementation, complete pending procurements, and ensure full utilisation of the loan proceeds within the MFF period,” the ADB stated. The Ecnec has approved the bids from a joint venture comprising NXCC, Dynamic Constructor and Rustam Associates even though parliamentary committees and the PPRA expressed concerns. The NHA defended the choice, stating that allegations of non-performance against the lead partner “did not reach finality in accordance with the procedure and rules”, and the firm was never blacklisted by any agency. The ADB confirmed it has no objection to awarding the contracts to the lowest evaluated bidder across four specific lots: Lot 1: Rajanpur to Jam­pur (57.5km) for Rs23.5bn; Lot 2: Jampur to Dera Gh­azi Khan (64km) for Rs29.1bn; Lot 3: Dera Ghazi Khan to Tibi Qaisrani (111.7km) for Rs52bn; Lot 4: Tibi Qaisrani to Dera Ismail Khan (96.2km) for Rs42bn. IHC rejected PPRA’s petition on the Rs172bn Carec Tranch-III award to JV. In its verdict, the court warned that the regulator’s recent decisions “may also lead to the refusal of the finance facility agreed by the ADB,” and declared the petitions infructuous. Published in Dawn, January 12th, 2026