M/s Sinohydro the Chinese company involved in the 128 MW Keyal Khwar Hydro Power Project fiasco has been allowed by Water and Power Development Authority (Wapda) to participate in further tenders.
The 128 MW Keyal Khwar Hydro Power Project had been awarded to M/s Sinohydro – Hajvairy JV in 2014 but the companies failed to deliver due to some internal issues. Federal Investigation Agency (FIA) is investigating the matter.
After several efforts of reconciliation Wapda issued warnings to the companies involved which are as follows: (i) contractor’s lack of highly qualified and professionals throughout the contractor’s Project Management team; (ii) serious reluctance of the Contractor’s Project Management and staff towards strict compliance with numerous contractual obligations and requirements; (iii) Contractor’s unwillingness/reluctance/inability to ensure a timely elaboration and finalization of the contractor’s numerous design and construction documentation; (iv) Contractor’s insistence in implementation of modifications to the project layout instead of implementation of the works in accordance with the Contractor’s commitments as per signed contract; (v) Contractor failed to submit the contractor’s updated Programme of the works, duly revised in accordance with the actual progress of the works/extensive delays and in strict compliance with the requirement of General Condition of Sub-Clause 8.3; and (vi) Contractor did not submit a formal statement, confirming all differences and internal disputes between the JV partners have been mutually resolved, and manually committing the continued implementation of the contract in accordance to contractor’s JV agreement.
But due to the non-serious and unprofessional behavior of Sinohydro JV, Wapda issued letter of termination of contract KKHPP-02 “construction of civil & hydraulic works for Keyal Khwar Hydropower Project” under General Condition of Sub-Clause 15.2.
Now even after this experience Wapda has allowed M/s Sinohydro to participate in the tenders for future projects.
