ISLAMABAD-While pointing out irregularities in the award of contract for World Bank funded Dasu transmission line project, Turkish company SA-RA Energy, the second lowest bidder, offered its services to the Government of Pakistan stating that they are ready to take over the contract and will complete it timely.
“There are glitches and major mistakes in the submitted document of the contract,” said the representative of the SA-RA Energy while briefing the Senate Committee on Power. The Senate Standing Committee on Power met here under the chairmanship of Senator Saifullah Abro. The meeting discussed mis-procurement of 765kV double circuit transmission line from Dasu Hydro Power Station to Islamabad contract.
“We have already held meetings with the NTDC and the power division and that we are ready to take this contract and we will complete it on time,” representative of the Turkish company said. The Turkish company SA-RA Energy which was the second lowest bidder gave stance that rendering of this contract to Sino-Hydro is not appropriate since they do not have any relevant experience.
They alleged that the successful bidder doesn’t have any experience. A contract of 157-km transmission line was awarded to a company which was not qualified, official of the Turkish company claimed. “We wrote a letter to NTDC informing them of all the points,” he said. However, the committee was apprised that the matter is sub-judice in the court. The committee deliberated at length the irregularities in transmission line contract of Dasu Hydro Project. While deliberating the matter, the members of the committee were of the view to give an opportunity to NTDC to also get their point of view.
It was further deliberated by the SA-RA Energy that they met with the World Bank at their head office for briefing them on the perceived irregularities. Senator Abro expressed displeasure over the lack of performance of the department concerned in resolving the matter.
It was further informed by the officials of the power ministry that they had communicated the concerns raised by the committee alongwith the relevant documents but the World Bank country office had expressed full confidence in the process; therefore, they had to award the contract. In the matter pertaining to NTDC BoD, NTDC on non-implementation status and non-serious attitude on clear recommendations of the committee, the power division officers apologised for the inappropriate letter to Senate Standing Committee on Power. The officials further explained that the letter was written from the then chairman and the board did not approve the draft letter. The chairman BoD later on resigned from his position, and the NTDC board members apologised for the previous letter and officially withdrew it. They further said they highly value the committee’s input on the oversight of the ministries.
Senator Dilawar Khan suggested that an in-camera briefing be held on the subject matter within 10 days so that the power division could give a comprehensive briefing with appropriate documents. The committee unanimously endorsed the proposal of in-camera meeting to expedite resolution in the matter. The committee took up the matter of NESPAK on the non-implementation regarding submission of re-evaluation report and status for ADB project for further consideration.
The NESPAK apprised the committee that the domestic preference given in the financial evaluation was based on EDB (Engineering Development Board) letter issued in February 2015 and the clarification should have been sorted for the usage of letter issued in February 2015 and the evaluation been done for the year 2022, which was not an appropriate action. The committee was further apprised that the usage of letter was for the period of six months. The committee observed that Newage cable was given domestic preferences on the basis of this letter, which put the whole procurement process in doubt. The committee after deliberation at length on the matter unanimously resolved to recommend the matter by sending a note by NESPAK in consultation with the NTDC to the lender (The Asian Development Bank) and intimate them of the letter on the basis of which they were technically qualified; however, the letter is of 2015 and was for valid for only six months, therefore, holds ineffective due to lapse of five years. The committee deferred the matter and further instructed the NESPAK and NTDC of sharing of the note within three days. It was also apprised that though the ADB has issued NOC to the Newage company, the committee recommended that agreement should not be signed until the reevaluation process is completed in the light of the committee recommendations.