The Board of Directors, Port Qasim Authority (PQA), after a months-long uncertain situation, has decided to award the Rs 10.2 billion self-financed dredging contract to the Chinese firm, China Harbour Engineering Company (CHEC), which had offered lowest bid for the project
The project comprises deepening and widening of the 45 km navigational channel of Port Qasim, aimed at achieving an all-weather 14-metre draught by 2010. The company took a sigh of relief on Monday when the PQA Board declared it the successful bidder.
The Board's decision came following reports that PQA was influencing the open bidding process in favour of a European dredging firm, Dredging International (DI). According to sources, the Authority will issue the Letter of Intent (LoI) to the Chinese firm this week, most probably on November 6.
Sources said that completion of the project would help PQA avoid a Dubai Ports (DP) World-backed penalty imposed in case of PQA's failure to improve its navigational channel by next year. Technical Department of PQA has already given green signal on technical as well as financial qualification of CHEC for the project which would be undertaken on Design, Construct and Finance basis.
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