Senate refers Rs5 billion NHA payment issue to FIA and NAB

The Senate Standing Committee on Economic Affairs decided to refer serious questions regarding the 765kV Dasu Islamabad transmission line

Islamabad:  The Senate Standing Committee on Economic Affairs decided to refer serious questions regarding the 765kV Dasu Islamabad transmission line testing process to the Federal Investigation Agency and National Accountability Bureau. It also sought an investigation into the National Highway Authority’s release of about Rs5 billion in excess mobilisation advance for the CAREC Tranche III Rajanpur, DG Khan, DI Khan project.

The committee met at Parliament House on October 2, 2026 under the chairmanship of Senator Saifullah Abro. Senator Hidayat Ullah Khan, Senator Rubina Khalid, Senator Kamil Ali Agha and Senator Kamran Murtaza attended the meeting. The committee reviewed the progress of the 765kV Dasu Islamabad transmission line and the Communications Sector CAREC Tranche III project.

During its review of the 765kV transmission line, the committee examined the type testing system being used for the project and the implementation of recommendations made during its meetings on August 24, September 4 and September 14, 2026. The committee also sought details of action taken against contractors and consultants and questioned the slow progress of the project.

The committee was told that 88 towers required Forest NoC. Payments had been made for eight towers and work had started on those towers. For the remaining 80 towers, Forest and NHA NoCs were still required. The committee was informed that 10 towers under Lot I had been completed, while four towers under Lot II had been completed and 12 towers had been erected. Chairman Saifullah Abro ordered that demand notices for the remaining 80 towers be provided and sought details about their NoCs and the steps being taken to remove delays.

A major concern arose over the testing policy for the transmission line. The committee was told that the 2019 policy contained 40 STL laboratories, while eight more laboratories were shown as having been added in the 2023 policy. However, the committee found that only three of those eight were actually new; five were already included in the earlier list of 40 laboratories.

The committee also questioned the use of a Pakistani laboratory based in Rawat. Members were told that the laboratory had never conducted testing of transmission lines up to 200kV. The committee questioned how a laboratory with such limited experience could be considered for testing a 765kV transmission line. The committee also noted information that international STL laboratories were not equipped to conduct the required testing. It said representatives of the National Grid Company had provided misleading information regarding the testing laboratories.

The committee also examined correspondence involving the project consultant, M/s GOPA Intec. A letter from the consultant directed that testing be conducted by a Chinese company instead of an STL laboratory mentioned in the original and revised testing policies of 2019 and 2023. The committee observed that no Chinese laboratory was listed in either policy and said the consultant was required to follow the bidding documents.

The committee directed NGC to take appropriate action against the consultant. It also ordered NGC to provide copies of notices issued to the consultant and contractor, the names of officers involved in preparing the 2023 testing policy, date wise details of payments made to the contractor, relevant correspondence, mobilisation payment details and video evidence of meetings. NGC was also asked to provide a list of GOPA Intec officials stationed in Pakistan.

After detailed deliberations, the committee unanimously decided to refer the matter to FIA and NAB for further investigation into the preparation and implementation of what it described as a manipulated revised testing policy of 2023. The referral also covers alleged violations of rules and bidding documents and the roles of NGC officials, the contractor and the consultant in the testing issue.

The committee also examined pending payments for the 765kV Dasu Islamabad transmission line project covering Lots I to IV. It wanted briefings from the Ministry of Finance and Revenue and the Ministry of Planning, Development and Special Initiatives about the release of payments needed for timely completion. The Secretary Finance and Revenue and Finance Division officials were absent, so the committee decided to summon the Secretary Finance and Revenue at its next meeting.

The committee then examined the Communications Sector CAREC Tranche III project covering Rajanpur, DG Khan and DI Khan. It reviewed physical and financial progress, spending, bid securities, performance guarantees, mobilisation advance guarantees and the implementation of earlier committee recommendations.

Officials informed the committee that work on Lots I and II was still pending, while work on Lots III and IV had started. The contractor had received a mobilisation advance of Rs5.199 billion for Lot III and about Rs4.2 billion for Lot IV on June 23 and June 24, 2026. The committee was told that four cheques had been issued in two instalments for the two lots.

The committee questioned the release of the full 10 percent mobilisation advance. Under the applicable procedure explained to the committee, 5 percent could be released after submission of the Mobilisation Advance Guarantee, while the remaining 5 percent was to be released after full mobilisation at the project site. Officials informed the committee that the contractor had not been fully mobilised when the payment was released.

The committee took serious notice of what it called an apparent irregularity by NHA in releasing the full 10 percent mobilisation advance within only 24 hours. NHA officials also read the relevant contract clause before the committee and acknowledged that the remaining 5 percent was linked to full mobilisation at the site and issuance of the required certificate by the Engineer to the Employer.

The committee unanimously decided to refer the NHA payment matter to FIA and NAB for further investigation. It directed that responsibility be fixed against the officers who authorised and released the payment and called for recovery of about Rs5 billion in excess mobilisation advance from the contractor.

The committee also questioned the absence of Ali Sher Masud, Secretary Ministry of Communications, from the briefing on the CAREC project. It sought an explanation for his absence and said the Secretary should personally appear before the committee and provide the required briefing.