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PM asked to stop Rs910 million power project

Prime Minister Raja Pervaiz Ashraf has been asked by TransparencyInternational, Pakistan, (TIP), to halt the award of Rs910 million Golen Gol Hydropower Project because of severe violations of Public Procurement Rules by Wapda, which has been accused of manipulating the tender process to favour a selected party.

The prime minister has been approached through Principal Secretary to PM by TIP informing that Wapda was jeopardising the Government of Pakistan’s relations with Kuwait Fund for Arab Economic Development, by committing an alleged corruption by awarding the contract of Lot 3.2 E&M Works to unqualified Consortium M/s Rainwater causing loss of Rs910 million to the exchequer, against the directives of the Ministry of Water and Power No1 (6) DS(a)/2012 dated 19 April 2012 and Director Operation, Kuwait Fund for Arab Economic Development letter to Secretary EAD dated 5th July 2012.

Complaints received by the failed to clarify that prequalification of Rainwater Consortium was not approved by Wapda, says a letter written by TIP to the PM.

“Background of this alleged scam is that on 15th September 2011, Wapda Consultant M/s Fitchner carried out evaluation in accordance with the bidding documents, and declared ANDRITZ Hydro as the lowest evaluated bidder, and recommended Wapda to invite it for negotiations to award the contract. The Ministry of Water and Power on TIP letters formed a fact finding committee, and vide letter No. 1 (6) DS(a)/2012 dated 19 April 2012 sent the report of the inquiry committee which confirms;

1. That it is an admitted fact that there were numerous discrepancies and procedural anomalies in the prequalification process.

2. That the Consultant Fitchner’s evaluation report carried out in accordance with the bidding documents declared ANDRITZ Hydro as the lowest evaluated bidder.

3. That the consultant recommended Wapda to invite ANDRITZ Hydro for negotiations to award the contract, and that Wapda did not comply with the evaluation of the consultants.

4. Through its in-house evaluation committee, the Wapda re-evaluated the bids, and declared M/s Rainwater as the lowest evaluated bidder.

5. That Wapda made a false statement to the committee that the consultant had agreed with Wapda on new evaluation report, which declared M/s Rainwater as the lowest bidder while Wapda failed to provide written evidence of this statement.

On TIP letter, Fauzi Yousef Al-Hunaif, Director Operation, Kuwait Fund for Arab Economic Development directed Secretary EAD on 5th July 2012, to clarify and confirm the issues so that they may clear the project. On 31st July 2012, Ministry of Water and Power directed Wapda to clarify whether evaluation report of this contract was to be approved by Kuwait Funds or not. “But Wapda, acting against the directions of Ministry of Water and Power, Secretary Economic Affairs Division and Director Operation, Kuwait Fund for Arab Economic Development, changed the tender conditions in favour of M/s Rainwater Hydropower, and issued a letter showing Wapda intentions of signing of contract agreement. TIP requested the prime minister, who had declared that he was for transparency and rule of law, to stop this alleged illegal award of this contract by Wapda, without Secretary EAD confirmation, PPRA approval and Kuwait Fund written clearance as required by Director Operation, Kuwait Fund for Arab Economic Development as Kuwait Fund had not granted the clearance since 21 March 2011.

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