Pak-China Partnership to Expand CAREC Corridor, Saving $13.25 Billion

ISLAMABAD — In a strategic move set to enhance regional trade and connectivity, a Chinese-led joint venture has secured all four packages of Tranche-III of the Central Asian Regional Economic Cooperation (CAREC) Corridor Project in Pakistan. The consortium, led by M/s Ningxia Communications Construction (NXCC) in partnership with local firms M/s Rustam Associates and M/s Dynamic Constructors, emerged as the successful bidder through a transparent and competitive process that resulted in cost savings of PKR 13.24 billion.

The CAREC Corridor Project, funded by the Asian Development Bank (ADB), focuses on upgrading the N-55 highway, which spans between Rajanpur, Dera Ghazi Khan, and Dera Ismail Khan. This ambitious initiative aims to convert the existing two-lane road into a four-lane carriageway, significantly improving regional connectivity and facilitating trade across Central and South Asia.

The joint venture’s bid demonstrated remarkable cost efficiency, securing each package with considerable financial advantages over the second-lowest bidders. The savings ranged from PKR 1.4 billion to PKR 7.1 billion across the four lots, reflecting strategic bidding and effective cost management.

The National Highways Authority (NHA) underscored the transparent nature of the bidding process, in line with Prime Minister Shehbaz Sharif’s commitment to transparency and competitive procurement. The financial bids were thoroughly evaluated, addressing all concerns to ensure fairness and efficiency.

The successful bid by NXCC not only underscores the growing influence of Chinese companies in Pakistan’s infrastructure development but also reinforces the strategic partnership between the two countries. This venture is expected to play a pivotal role in strengthening economic ties and enhancing trade routes within the region.

While Tranche-III sets the stage for further development, significant progress has also been made on Tranche-I and Tranche-II of the CAREC Corridor Project. The Petaro-Sehawan section, a 66.37 km stretch constructed by M/s Xinjiang Beixin Road and Bridge Group, is 98% complete. Meanwhile, the 43.4 km Ratodero-Shikarpur segment, developed by a joint venture of M/s TIEC and Umer Jan, has reached 43% completion.

Tranche-II, which covers the Shikarpur-Rajanpur stretch, involves multiple road segments currently under construction by firms including M/s ZKB and M/s CCECC. The progress on these segments ranges from 14% to 23%, with expectations of timely completion to enhance Pakistan’s transport infrastructure and regional trade connectivity.

The successful implementation of Tranche-III is anticipated to transform Pakistan’s road infrastructure, providing a vital trade corridor that links Central and South Asia. This development is poised to foster economic growth, enhance regional connectivity, and promote trade integration across the CAREC region.

Read: China-Pakistan Economic Corridor (CPEC): An Overview

With Pakistan’s strategic location and growing importance as a trade hub, the CAREC Corridor Project is set to play a critical role in boosting economic activity, creating employment opportunities, and facilitating cross-border commerce.

This project marks another milestone in the deepening economic partnership between Pakistan and China. By leveraging Chinese expertise and investment, Pakistan aims to accelerate its infrastructure development and strengthen its role as a key player in regional trade.

As the world watches the progress of the CAREC Corridor Project, the successful execution of this initiative will not only enhance Pakistan’s connectivity but also solidify its position as a pivotal link in the global trade network.

The collaboration between NXCC and local Pakistani firms is a testament to the power of strategic alliances in driving infrastructure growth, economic development, and regional integration.