Ministry of Energy (Power Division)

Wapda explains role of losing bidder

 ISLAMABAD: Water and Power Development Authority (Wapda) has claimed that the losing bidder of 106 MW Golan Gol Hydropower Project forced the Authority to issue the Letter of Intent (LoI) through litigation.

Wapda’s General Manager ( Proejcts) North, Rashid Ali Khan, in a letter to Hamid S. Al-Omar, Deputy Director General, Kuwait Fund for Arab Economic Development on September 27, 2013 stated the reasons behind the issuance of a letter of Intent (LoI) to M/s Rainpower of Norway for procurement and installation of electro-mechanical equipment (E&M) works) Lot No.3.2 re-tender. 

Wapda’s top brass is facing serious charges of “favouritism” to one party in the project for which the annulled process was resumed. TIP has already requested the Supreme Court of Pakistan to take a suo motu notice of massive violation of PPRA rules. 

According to the General Manager, Wapda was confronted with difficulties in finalizing the award of subject contract for E&M works, with the losing bidder persistently agitating the evaluation report at different fora such as print media, Transparency International of Pakistan (TIP), National Accountability Bureau (NAB) and court. As a result, a lot of lengthy correspondence was exchanged in explaining the position to different agencies.

“Due to self-styled and misleading interpretations by the losing bidder, WAPDA faced an acute deadlock which was likely to inflict cost enhancement and time over-run, thereby compelling Wapda to annul the process of procurement,” Khan added.

He maintained that annulment order considered as breach of right was challenged by the lowest evaluated bidder (M/s Rainpower-Al Fajr Consortium) in the Islamabad High Court. Wapda was caught in another stalemate, therefore, in an effort to save time and cost over-runs, Wapda requested M/s Rainpower Consortium to withdraw their writ petition pending decision by the court. M/s Rainpower-Al Fajr Consortium responded to withdrawal of their claims/court case subject to award of contract to them, and voluntarily offered a discount of Rs.140 million on the bid submitted on June 30, 2011, which has been accepted by Wapda.

“As Wapda has processed the case in accordance with PPRA/PEC rules and the evaluation was carried out by Wapda review committee, duly endorsed by the project consultants, as such concurrence may be accorded to award the Lot 3.2 contract to M/s Rainpower Consortium on their bid price submitted on June 30, 2011, further reduced by Rs.140 millions,” he continued. 

Meanwhile, an official of Yngvar Dramstad of M/s Rainpower of Norway has also acknowledged that they have received LoI from Wapda.—MUSHTAQ GHUMMAN