Oil and Gas Development Company Limited (OGDCL) management is set to table four proposals including scrapping the tender for $186 million Engineering, Procurement and Construction (EPC) contract for Uch-11 development project before its Board of Directors (BoDs) scheduled to meet on April 27.
Petrosin is the lowest bidder for the project with a $186 million bid but the award of the contract has been delayed due to controversies raised over submission of amended bid bond. Frontier Works Organisation (FWO) has also served OGDCL a legal notice for not opening its financial proposal. As one option, OGDCL itself may execute the Uch-11 project after scrapping the tender by engaging public sector entities as happened in Qadirpur gas field: OGDCL may procure the equipment and M/S Enar may be tasked to provide engineering services with SNGPL engaged for construction work.
Under second option, OGDCL may propose to its BoDs to award the contract to the lowest bidder (Petrosin). As for the third option, BoDs may be requested to approve the initiation of a new tender process. However, in case of re-tendering there is a distinct possibility that those groups that have already taken part would again participate raising the prospect of a new controversy.
Managing Director OGDCL Naeem Malik has formed a three-member committee to verify the documents submitted by different bidders. The fourth proposal is to seek approval of the board to disqualify that company which failed to get its documents verified before the committee. "Negotiations can start with the second lowest bidder," sources said adding that final decision, however, rests with BoDs.
OGDCL has responded to the legal notice served by FWO by maintaining that as it had not qualified for the technical bid therefore its financial bid was not opened. Public Procurement Regulatory Authority (PPRA) has found no deviation of PPRA rules 2004 in submission of 'amended bid bond' by M/S Petrosin to OGDCL for the $186 million contract. However, in a recent letter, China Lianoning International Economic and Technical Co-operation Group Corporation (CLIC) Representative in Pakistan office informed OGDCL that it has revoked the agreements with Petrosin Engineering for Uch-11 and Kunnar Pasakhi Deep Development Projects (KPD) - a revocation that has given birth to yet another controversy.
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