ISLAMABAD: The Capital Development Authority has secured a highly competitive bid 10 percent below the official tender estimate for the long awaited Margalla Avenue extension project, marking a major shift in its procurement strategy. The development comes after the civic agency relaxed previously stringent bidding criteria to encourage broader industry participation and transparent competition.
The Rs3.58 billion project covers the construction of a 2.7 kilometre stretch of Margalla Avenue linking GT Road with the Peshawar Motorway M1. The scheme also includes the development of a modern cloverleaf interchange on GT Road to ensure seamless traffic integration and improved connectivity for commuters entering and exiting Islamabad.
A total of 13 construction firms submitted bids for the project, reflecting renewed confidence in the revised bidding framework. After technical scrutiny, two firms were disqualified while financial bids of the remaining 11 were opened. New Khan Builders emerged as the lowest bidder by offering a rate 10 percent below the Notice Inviting Tender cost. A senior CDA official confirmed that contractual formalities are being completed and work will commence shortly.
The latest competitive outcome contrasts sharply with last year’s tendering process for five major infrastructure projects, including Serena Interchange and F8 Interchange, where restrictive criteria limited participation. Most of those contracts were secured by a joint venture of two companies, drawing criticism and sparking scrutiny over cost escalations in at least one project.
Under the new plan, the CDA will construct a three lane dual carriageway supported by two lane service roads, forming part of a six lane corridor designed to reduce congestion and provide an alternative route for traffic moving between Islamabad and GT Road N5.
The road will extend from GT Road near Sangjani Grid Station and connect with a 2.5 kilometre stretch being executed by the National Highway Authority in Rawalpindi, ultimately linking to M1 near AWT Housing Society. Once launched, the CDA project is expected to be completed within eight months, unlocking the full traffic potential of Margalla Avenue after years of delays.
