Islamabad: Oct 17: In a worse case of compromising the national interest, Oil and Gas Company (Pvt) Limited (OGDCL), a state-owned exploration and production giant, has awarded a $ 85 million Uch gas compression project to a foreign company which was initially declared as “partially qualified” by the consultant.
Sources said only two parties had turned up to bid for $ 85 million Uch gas compression project. ENAR, the consultant in this case, evaluated the bids of both parties. It mentioned in the assessment report that Hong Kong based Chinese company , did not meet the criteria and hence it falls in the category of partially qualified bidders.
It also noted that Hong Kong based Chinese company’s bid is being processed for simply bidding purpose. The consultant report clearly suggested that there was only one serious party in the run for award of Uch gas compression project. Since OGDCL could not process the bids for the project in case it has only one party in the run. It processed Hong Kong based Chinese company’s bid to give an impression to Pakistan Procurement Regulatory Authority (PPRA) and other related authorities that there were two parties in the run for award of Uch compression project .
ENAR report is self- explanatory. It confirms that OGDCL management had vested interest in award of the contract for Uch to its handpicked party. In the first move it awarded the contract to M/s Presson Descon led led consortium and on its detraction instead going for the new bidding it picked up the second bidder which has failed to get qualified at an initial stage.
Sources said the gang comprising serving and retired officials of OGDCL played a game behind the scene to secure this multi million project for a particular supplier. The gang wanted to award the contact for Uch gas compression to any of two parties in the run as the manufacturer of the both parties was the same. Hence, it made no difference for the gang playing a game to make its luck through award of contact to any one of two parties as manufacturer of both parties was the same.
The OGDCL management. instead following a transparent process in award of the Uch gas compression project of worth $ 85 million followed a shady process from the very beginning.
The collusion of OGDCL management with the group of retired officials of the company paved way for award of the contract to a party of its choice in violation of PPRA rules.
PPRA rules stress for ensuring transparency and holding of an unbiased bidding process in the procurement for any public sector project to ensure that each penny of the public money is spent in the most transparent manners.
Unfortunately, OGDCL management neither ensured transparency nor followed an unbiased procedure for award of the contract of $ 85 million to a party which qualifies for it on merit.
Sources privy to the bidding process followed by OGDCL in award of the contract for Uch gas compression project told NEWSMAN that the entire process of the bidding of this multi- million dollar project is dubious. There are hundreds of other examples where OGDCL disqualified a potential bidders for slight deviation from the tender document. However, in the case of Uch gas compression project despite declaring the company in question partially qualified OGDCL has awarded it Uch gas compression contract.
The award of Uch gas compression project to partially qualified bidder has raised serious question over OGDCL’s credibility. It clearly establishes that OGDCL management compromised the national interest in award of the contact to a handpicked party
