NESPAK tender for ADB project: Senate Secretariat withdraws minutes of Oct 17 meeting

ISLAMABAD: Apparently in an unprecedented move, the Secretariat of Senate Standing Committee on Power has withdrawn minutes of Senate Standing Committee on Power meeting dated October 17, 2023 with respect to NESPAK award of tender for procurement of Bunting Conductor in ADB project due to invisible influence within and outside the Senate, well-informed sources told Business Recorder.

A letter written by Secretary Committee, Bushra Rafique, on November 7, 2023 addressed to Secretary Power Division, copies of which have also been dispatched to Principal Secretary to Chairman Senate and Director Staff to Chairman Senate, notes: “I am directed to state that direction of the Committee in its meeting held on October 17, 2023, regarding re-evaluation on the tender process of ADB project ACSR Bunting Conductor and submission of report within two weeks’ time, stands withdrawn.”

The language of the letter written by Secretary Committee indicates that this letter supersedes the earlier letter to avoid legal complications.

It is also unclear who directed Secretary Committee to withdraw minutes of the Committee meeting without bringing it into the notice of concerned Committee members.

NESPAK awarded tender to a local firm M/s Newage Cables which has been challenged by Chinese firm M/s Henan Tong-Da China.

Zargham Eshaq Khan assumes charge of acting NESPAK MD

During discussion on this issue on October 17, 2023, Chairman Committee, Senator Saif Ullah Abro, observed that in the last Committee meeting it was stated that the tender is of ACSR Bunting Conductor and both responsive companies did not have any experience of Bunting Conductor.

The 2nd lowest bidder (M/s Newage) became first lowest bidder of the project due to the domestic preference instead of M/s Henan Tong-Da China which was first lowest bidder. The NESPAK’s stance was that the Department had no working on 30% domestic preference and a letter of Engineering Development Board (EDB) was considered in this regard.

He pointed out that domestic preference is clearly mentioned in the guidelines of ADB and that process cannot be waived off. The tender was opened in July, 2022 and domestic preference was to be submitted at the time of submission of tender documents.

After extensive deliberations, the Committee unanimously proposed/issued the following recommendations: (i) NESPAK to provide the exchange of correspondence with M/s China Energy regarding Sukki Kinari project to the Committee especially regarding manufacturer, M/s Henan Tong-Da, China and their part in the project along with all concerned documents from submission of bid for Suki Kinari Hydropower project till supply of material and other functions till date; (ii) Power Division and NESPAK to take action against the concerned official involved.

The MD, NESPAK assured the committee that NESPAK will again go through the bidding documents and will submit re-evaluation report before the next Committee meeting. Power Division suggested to MD NESPAK to appoint an officer not less than the rank of a Deputy Secretary for further investigation and action against concerned involved officials of the project; (iii) NESPAK to provide the complete exchange of correspondence with ADB to the Committee. NESPAK reevaluate the tender process and submit reevaluation report within 2 weeks.

The committee further recommended Power Division, NTDC and NESPAK that agreement may not be signed as whole tender process has been found wrongly evaluated and manipulated by NESPAK and NTDC officials with mala fide intent in favour of 2nd lowest bidder, M/s Newage which was surprisingly declared lowest bidder with illegal domestic preference.

This too was not submitted at the time of the submission of the bid on July 7, 2022 and was submitted on October 13, 2023 after the irregularities were found by the Committee in the meeting held on September 26, 2023.

NESPAK also misguided the Committee that M/s Henan Tong Da, China has no experience of ACSR Bunting Conductor as it has experience of ACSR Bunting Conductor in Sukki Kinari Hydropower project where NESPAK is consultant and NESPAK and NTDC officials were well aware of this; and witnesses of the testing, shipment and other formalities are already mentioned in their submitted briefing documents of meeting held on October 17, 2023. Power Division and MD, NESPAK has to take action against involved officials of NTDC and NESPAK.

The sources said this issue will again be under heated debate during the forthcoming meeting as the Committee Secretariat cannot withdraw Committee’s minutes without prior approval of the concerned committee including its chairman.

Copyright Business Recorder, 2023