OGDC puts on hold Kunner Pasakahi, Jhal Magsi projects: Uch II probe body report awaited

All decisions related to the multimillion-dollar Kunner Pasakahi and Jhal Magsi development projects have been put on hold by the Oil and Gas Development Company Limited (OGDC) pending completion of a three-member Inquiry Committee report on Uch-II project, sources exclusively told Business Recorder.
"Decision on other projects will be taken subsequent to the finalisation of this project (Uch-II) and the Committee may, however, examine the papers submitted by the parties in other projects as well, involving Project Incharge concerned, to avoid delay," says a directive issued by Managing Director (MD) of OGDC, Naeem Malik.
"The project would be awarded purely on merit in a transparent manner without exception. A team comprising ED (Finance), GM (SCM) and Project Incharge (UCH-II) is, therefore, constituted to also simultaneously examine all controversial issues," the MD said in the directive, adding that "the Committee may, therefore, inter alia examine accuracy/correctness of papers/information submitted by the bidders, ability to timely complete the project, adoption of proper procedure in the bidding process without any deviation to PPRA rules and that there is no discrepancy in evaluation". And the Committee may opt for internal or external legal help, if so required."
According to MD's directive UCH-II gas was allocated to UCH-II Power Project by the Government of Pakistan. OGDC had invited bids for award of EPC contract so that gas may be supplied to the Uch II Power Project. The technical and financial bids have been opened by the Committee and sent to the Consultant for evaluation.
"Keeping in view the importance of the project it is necessary that evaluation is completed expeditiously," the directive states. While the project is still under evaluation, some unethical controversies have been created, which are against the interest of the Company and the Country, the MD's directive argues. "A report to this effect may please be submitted as soon as possible," the directive adds.
The Frontier Works Organisation (FWO) has served a legal notice to OGDC management over not opening its financial bid. "FWO had failed to qualify for the technical proposal for Uch-II Development Project and therefore FWO's financial bid was not opened," sources said.
The OGDC opened technical proposals relating to Uch-II tender on 29-11-2010 and the following companies participated therein: (i) Frontier Works Organisation (FWO); (ii) Petrosin; (iii) Presson Descon; and (iv) Specialty Process Equipment Corporation (SPEC). Petrosin had offered a price of $186 million; Presson Descon $275 million; and SPEC $227 million.