KP cancels Rs33bn tender for flagship solar project over rules violations

PESHAWAR: The Khyber Pakhtunkhwa government has officially scrapped the Rs33 billion tender for solarization project following revelations of massive irregularities in the bidding process, inflated cost estimates, and changes in specifications. The project was announced in August 2024 by Chief Minister Ali Amin Gandapur to provide free solar systems to 130,000 households in the first phase.

The chief minister officially inaugurated the initiative in March 2025, while the balloting process has also been completed.

Jang and The News had highlighted these irregularities in two investigative reports published on May 13 and May 28, exposing serious flaws in the solar project initiated by the KP government

A notification issued by the Pakhtunkhwa Energy Development Organization (PEDO) on July 14, 2025, announced the annulment of the procurement process “in the best public interest, ” directing pre-qualified bidders to collect their bid securities or retrieve submitted bank guarantees.

The annulment follows a damning report highlighting the per-unit price remained at Rs204,000 despite a major revision in solar specifications. Experts estimated the cost should have been around Rs140,000, raising questions about fairness and transparency.

Even more alarmingly, the project was split into 20 packages, yet 18 of these packages received only a single bid.

In some cases, the lowest bidder quoted rates 7 percent lower than other bidders for certain packages in Hazara Division, exposing inconsistencies.

Sources said a controversial “all-in-one” solar solution was introduced at the eleventh hour and inserted into the PC-1 with a specific code.

A senior PEDO official, who objected to this inclusion of all in one solution, was removed from the technical committee, adding fuel to the allegations.

The Khyber Pakhtunkhwa Public Procurement Regulatory Authority, in its May 20 advisory, declared the tendering process as “mis-procurement”, warning that opening financial bids without PDWP approval violated the KPPRA Act 2012 and Rules 2014. The PDWP had earlier deferred the project, citing high cost estimates and biased eligibility criteria that restricted competition. However, PEDO had defended its actions, claiming it acted under Clause 22(3B), which allows proceeding with procurement up to the award stage.

The Secretary of Energy and Power Zubair Khan told this correspondent that a fresh PC-1 will be prepared from scratch to address the objections raised by the Provincial Development Working Party (PDWP).

He added that this new proposal will be developed with improved technical specifications, and strict adherence to procurement rules. Once finalized, the new PC-1 will be submitted to all relevant forums — including the PDWP and other oversight bodies — for thorough evaluation and formal approval, to restart the solar project on transparent and credible grounds. An official of the Planning and Development Department told this correspondent that the provincial government should initiate an inquiry into these irregularities, as the flagship project of the PTI has been delayed. He added that ordinary citizens will suffer, as they are now unlikely to receive the solar systems this summer and may have to wait until the end of this year or even next year.