Controversy over Uch-II project resolved

The controversy over Uch-11 development project has ended as Public Procurement Regulatory Authority (PPRA) has found no violation of PPRA rules 2004 in the submission of ''amended bid bond'' by M/S Petrosin to Oil and Gas Development Company Limited (OGDCL) for the $186 million contract.
OGDCL had left decisions on other development projects including Kunner-Pasakhi pending till the resolution of controversies on Uch-11 development project. OGDCL management in its letter sent to Ministry of Petroleum on March 10, 2011 stated that according to legal opinions sought from external lawyers and PPRA, the act of receiving ''amended bid bond'' for Uch-11 development project was in line with rules and regulations.
Spokesman of OGDCL Bisharat Mirza confirmed that PPRA, in its opinion, said that ''submission of amended bid bond'' for Uch-11 development project was in line with rule 31 of PPRA Rules 2004. He also maintained that Ministry of Petroleum had also sought explanation over the submission of amended bid bond by M/S Petrosin. "We have also informed Ministry of Petroleum that external lawyers and PPRA had given opinion in favour of submission of amended bid bond by M/S Petrosin for Uch-11 development project," he added.
Managing Director (MD) OGDCL Naeem Malik had formed a three-member committee to resolve the controversies over submission of amended bid bond by M/S Petrosin.The committee had sought opinion from PPRA and legal opinion from lawyers to this effect.
OGDCL has entered into Gas Sales Agreement (GSA) by allocating gas to UCH-II Power Project. OGDCL had invited bids for award of engineering, procurement and construction (EPC) contract so that gas may be supplied to the power project. The technical and financial bids had been opened by the committee and sent to the consultant for evaluation.
Keeping in view the importance of the project it was necessary that evaluation be completed expeditiously. "While the project is still under evaluation, some controversies have been created by some parties to get advantage, which is unethical and against the interest of the company and the country," says a directive issued by MD OGDCL to three-member committee.
The MD Naeem Malik had pledged that project would be awarded purely on merit in a transparent manner without exception. According to directive, a team comprising ED (Finance), GM (SCM) and Project Incharge (UCH-II) was constituted to simultaneously examine all controversial issues. The committee was tasked to 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. The committee was also directed to seek internal or external legal help. OGDCL had opened technical proposals relating to Uch-11 tender on 29-11-2010 and the following companies participated: (i) Frontier Works Organisation (FWO); (ii) Petrosin; (iii) Presson Descon; and (iv) Speciality Process Equipment Corporation (SPEC). Petrosin had offered a price of US $186 million, Presson Descon US $275 million and SPEC US $227 million.