Senate committee questions Rs5 billion NHA mobilisation advance for CARIC project

The Senate Standing Committee on Economic Affairs has questioned the National Highway Authority’s (NHA) payment of approximately Rs5 billion

ISLAMABAD:  The Senate Standing Committee on Economic Affairs has questioned the National Highway Authority’s (NHA) payment of approximately Rs5 billion as a mobilisation advance for the CARIC Lodhran-Dera Ismail Khan section, seeking details of the financial and contractual arrangements behind the major road project.

The issue was raised during a meeting of the committee at Parliament House, chaired by Senator Saifullah Abro. Senators Hidayat Ullah Khan, Rubina Khalid, Kamil Ali Agha and Kamran Murtaza also attended the meeting.

The committee discussed the matter while reviewing the Communications Sector CAREC Tranche III project covering the Rajanpur, Dera Ghazi Khan and Dera Ismail Khan sections. Members sought a comprehensive briefing on the project’s implementation, physical progress, financial position, expenditure and guarantees and payments associated with the scheme.

Particular attention was given to the financial instruments submitted in connection with the project. The committee sought details regarding bid securities, performance guarantees and mobilisation advance guarantees, asking officials to explain how these arrangements were being managed and whether they complied with the approved contractual framework.

The payment of around Rs5 billion as a mobilisation advance for the CARIC Lodhran-Dera Ismail Khan section emerged as a major point of concern during the proceedings. The committee took notice of what it described as a financial and contractual lapse on the part of the NHA and sought clarification regarding the circumstances in which the payment was made.

Members also asked for an updated report on the implementation of recommendations issued during the committee’s previous meetings. They wanted to know whether earlier directions had been followed and whether outstanding financial, administrative and implementation-related issues had been addressed.

The absence of the concerned secretary from the briefing also came under discussion. Committee members questioned why the senior official was not present to personally brief the parliamentary oversight forum about the project’s progress and financial arrangements.

The committee maintained that Ali Sher Masood, the concerned secretary, should appear before the panel and provide the required briefing. Members emphasised that senior officials responsible for major development projects should be available to respond directly to questions concerning implementation, expenditure and contractual matters.

The Senate panel also called for complete documentation relating to the project. This included procurement records, bidding information, guarantees, payments, expenditure details and relevant official correspondence. Members said access to the complete record was necessary to assess the financial and contractual position of the project and determine whether the approved procedures had been followed.

During the meeting, the committee also highlighted the broader impact of delays and financial complications in major infrastructure schemes. Members noted that prolonged delays can affect project costs and postpone the delivery of intended public benefits.

The committee called for improved coordination among the executing agency, relevant government departments and development partners to address outstanding issues and ensure progress according to established timelines.

The proceedings have placed the approximately Rs5 billion mobilisation advance, along with the broader financial and contractual management of the Rajanpur-Dera Ghazi Khan-Dera Ismail Khan communications project, under parliamentary scrutiny. The committee is seeking further explanations, documentation and briefings from the relevant authorities before assessing the issues raised.