Elengy Terminal Pakistan Limited (ETPL) and Pakistan Gas Port Limited (PGPL), the only two companies which participated in the LNG tender process undertaken by Inter State Gas Systems Limited (ISGS), remain at loggerheads as the government swiftly moved to announce the award of the multibillion-dollar project. ISGS in its board meeting on November 21, 2013 formally approved the award of the LNG project to ETPL after it disqualified PGPL on November 6.
According to sources privy to developments in the meeting, which included officials from Sui Southern Gas Company Limited (SSGC), ISGS Managing Director Mobin Saulat faced tough questions regarding objections raised by PGPL, the National Accountability Bureau (NAB), Transparency International-Pakistan, and the Public Procurement Regulatory Authority (PPRA). The managing director offered to personally certify that the tender process followed all rules and regulations, sources told Business Recorder.
The LNG project envisages a payment of more than $2 billion over 15 years to Engro-owned ETPL for utilisation of its services at Port Qasim. PGPL won the previous LNG tender, which ETPL was disqualified from and that was subsequently scrapped by the newly-elected government. After the tender was scrapped, the Ministry of Petroleum and Natural Resources moved a summary to award the project to ETPL without a competitive bidding process and by directing PPRA and Port Qasim Authority to waive all applicable rules standing in ETPL's way.
NAB, Transparency International-Pakistan, and PPRA have all asked ISGS to disclose full information regarding the evaluation process for scrutinising the latest tender before any contract is awarded. PGPL has raised several objections against ETPL, including that its EPC contractor, China Harbour Engineering Company Limited (CHEC), cannot participate in the tender since it is on the World Bank's debarment list. CHEC says this is inaccurate and has written to PGPL to apologise. PGPL, in its letter dated November 13 to CHEC, maintains that its statement is factual and merits no apology.
"While your assertion that sanctions against China Communications Construction Company Limited (CCCC) and all its subsidiaries, including CHEC, for fraudulent practices may only relate to road and bridge projects financed by the World Bank and may be valid, the specific debarment provision in the LNG Services Agreement does not allow for interpretations of commercial or legal convenience," PGPL has written to CHEC. "The fact is that CHEC, as a subsidiary of CCCC, stands sanctioned by the World Bank."
PGPL has told CHEC that its "statement pertaining to CHEC's ineligibility for the ISGS tender is both reasonable and factual. It cannot, therefore, be claimed to be defamatory ... PGPL retains the right under law to defend to the fullest its reputation, and to bring the full facts related to this tender for a nationally-important project to the due attention of the Pakistani public."
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