President Asif Ali Zardari has intervened to resolve the thorny issue of purchase of 75 locomotives by Pakistan Railways and directed the government to decide the matter on merit, sources told Business Recorder here on Saturday.
Sources said that the Chinese Ambassador Luo Zhaohui met the President at the Aiwan-e-Saddar on Thursday and briefed him about pressures on the Pakistan Railways to cancel the $107 million deal with the Chinese State locomotive manufacturing company Dongfang (DEC) for the purchase of 75 railway engines.
Sources said Chinese firm was the lowest bidder in the international tender and PR had accordingly awarded the contract to it in the month of July. However, senior US Embassy officials had been pressuring the Railways Ministry to cancel the contract with the Chinese company and award it to US General Electric Corporation although its offer was $227 million as against Chinese offer of $107 million.
Sources said that contract document has already been finalised, the Ministry of Law has vetted it and each has been stamped. Sources said the only reason for the delay in signing was the availability of Prime Minister of Pakistan to grace the signing ceremony for which reason the Chinese extended the validity of their bid from October 31, 2008 to November 30, 2008.
Sources said that after President's intervention and directives to Railways Ministry, Dongfang has further extended validity of its bid till December 31, 2008. However, sources said, despite President's directives and assurance the US officials are still pressurising Ministry of Railway to cancel the contract with China.
Sources recalled that contract of 75 locomotives was awarded to Dongfang Electric Company (DEC) on July 31, 2008 subsequently Pakistan Railways confirmed this vide letter issued dated 22.09.2008. Draft contract agreement was finalised 29.09.2008 and forwarded to the Law Division Government of Pakistan for vetting agreement.
Director Procurement of Pakistan Railways in the month of October again wrote to the DEC that "vetting of the Contract agreement had been completed by the Law Division and your team should proceed to Pakistan for signing of the Contract. The sources said that Chines team arrived in Pakistan on October 26, 2008 and the Contract Document was finalised with all annexes in four original volumes.
Each page of these four originals was stamped and initialled jointly by Dongfang and Pakistan Railways' officials on No 11, 2008. "Two copies of this stamped and initialled Contract Agreement were presented to Dongfang waiting for the Signing Ceremony to be graced by the Prime Minister of Pakistan, as Prime Minister Syed Yousaf Raza Gillani had expressed his desire to the Chinese Government during his visit to China in October to be present at the signing ceremony of this Contract,. the sources added.
They further said that after the constant pressure by invisible forces Pakistan Railways is resorting to delaying tactics to finalise the contract. The sources said that after signing the Contract with China, Pakistan Railways Risalpur Factory would start manufacturing of locomotives.
Sources said that as a responsible company, despite changing economical situation and other difficulties, the Chinese State owned company was maintaining its prices of more than 14 months ago as a good gesture of co-operation towards Pakistan, particularly when we had agreed, stamped and initialled each page of the Contract Agreement.
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