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Bid evaluation of $100 m Chinese aid project allegedly facing rigging

ISLAMABAD : April 14,2023: The Chinese government approved a US$100-million grant for repairing various sections of Pakistan’s N5 highway damaged by the recent floods. This is fully a manifestation of the long-term friendship between China and Pakistan, and it is of great significance to both countries.

To execute the China-aid project, both sides had signed the Implementation Agreement on January 20, 2020. As per the agreement, Pakistan NHA shall be fully responsible for the execution of the project, which includes the bidding process in compliance with Pakistan Procurement Regulatory Authority (PPRA)and bidding documents, i.e. biding opening, bid evaluation, bid evaluation report/result. While Chinese Project Management Company (CPMC) be responsible for supervising the bidding process, witnessing the bid opening, bid evaluation, and confirming the bid evaluation report/result.
But more than three months elapsed since the bid opening on December 22, 2022, Pakistan NHA still has not come up with the bid evaluation result.

Informed sources said the progress of bid evaluation was delayed due to the violation of Chinese Project Management Company (CPMC) and its intervention in the bid evaluation process for manipulating the bid evaluation report. Such act by the CPMC has cast a shadow on the China-aid project and brought the harm to the Pak-China good friendship.

As per the informed sources, during the bid evaluation process, the representative of CPMC approached the NHA office multiple times and talked to NHA staff members in inappropriate words in NHA office, due to NHA not scoring for the three bidders as per the intent of CPMC, for the purpose of intervention and manipulation in the bid evaluation process. In addition, some offensive expressions were also observed in the official letters addressed to NHA by CPMC.

Due to the consistent disturbance by CPMC, NHA had to address to the Economic and Commercial Office of Chinese Embassy in Pakistan and Ministry of Economic Affairs Division of Pakistan for further guidance. The Economic and Commercial Office of Chinese Embassy in Pakistan and Ministry of Economic Affairs Division of Pakistan respectively responded with instruction to both CPMC and NHA of strictly complying with the Implementation Agreement and PPRA Rules and completing the bid evaluation process as soon as possible.
Under the continuous intervention by CPMC, NHA finally completed the technical bid evaluation report (TBER) on Feb. 21, 2023, spending two months,

in compliance with the Implementation Agreement and PPRA Rules. NHA did not issue the TBER as per the intent of CPMC, CPMC delayed on confirmation of TBER, already 7 weeks after receiving the report till date, further impacting the project progress.

Due to non-confirmation on TBER for long time by CPMC, NHA had to address multiple times to CPMC for expedition on confirmation on TBER, and to the Economic and Commercial Office of Chinese Embassy in Pakistan, Ministry of Economic Affairs Division of Pakistan, and
Agency for International Economic Cooperation of Ministry of Commerce of China for reporting the situation.

The N5 highway is an important part of the north-south transportation in Pakistan. The section in Sindh Province was severely damaged in the 2022 flood, which had a serious impact on the movements of the residents along the road and the development of the local economy. Therefore, the rehabilitation of the N5 highway is the key to ensuring safe and smooth traffic in Pakistan, especially in Sindh Province, which is of great significance and urgency.

In addition, the judge at the project location has written many times to the NHA, requesting to repair the damaged road. Due to the misconducts done by the CPMC, the project was delayed for the implementation. The CPMC’s behavior of maliciously manipulating the bid evaluation process for its own self-interest is not only a disregard to the NHA, but also a disrespect for the local residents and Pak-China friendship, casting a shadow on this China-aid project that symbolizes the friendship between the two countries.

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