The Auditor General of Pakistan has released the audit report for the award of contract for Mohmand Hydropower Project alleging that the contract was
awarded to M/s CGGC-DESCON (JV) without following the proper bidding process.
After WAPDA advertised an invitation for bids, two Joint Ventures namely M/s CGGC-DESCON JV) and M/s FWO-Power China (IV) submitted their bids up to closing date. As per Technical Evaluation Report, M/s FWO-Power China (IV) “was declared technically qualified and their financial bid was technically non-responsive” and their financial bid was returned un-opened. M/s CGGC-DESCON (JV) was technically qualified and their financial bid was opened and after evaluation and correction, total bid price was finalized as Rs 201.523 billion which was more than the PC-1 estimates of Rs 163.681 billion. The price was subsequently decreased to Rs.183, 523.48 million by the bidder.
Audit is of the view that project of such magnitude / value should have been
awarded through international competitive bidding. In the absence of such
diligence, international firms of the required experience couldn’t participate.
Resultantly, the work was awarded without adequate and fair competition.
Last year WAPDA in its clarification had said that initially twenty three (23) firms had purchased the tender documents and bid submission date was extended 3-times by more than 5-months in total to encourage the bidders to participate in the bid.
The reply was not acceptable because neither wide publicity was carried out, as required under WAPDA Procurement & Contract Manual, nor the responsibility of rates was ascertained.
