Awarding contract for supply of Francis runners: Russian firm accuses Wapda of violating rules

A Russian company has accused Wapda of awarding contract for the supply of six Francis runners for Warsak hydal power stations to the third bidder, by-passing two lowest bidders. Chairman, Transparency International Pakistan, Sohail Muzzafar, in a letter sent to Federal Minister for Water and Power, Khawaja Asif has forwarded a complaint received by TI-Pakistan that Wapda, in violation of rules has disqualified two lowest bidders to award the contract to the third lowest bidder.
The tender results as reported by the complainant are given below:
1. Chongoin China USD.8, 767 000.00.
2. Power Machines Russia USD.15 024 000.00
3. Impsa Argentena Pak Rs l 612 087 660.00
The complainant M/s Power Machines Russia has made following allegations:
--- After the bid of M/s Chongoin China of US $8.767 million was rejected, as the bidder was disqualified, M/s Power Machines Russia's bid at US $15. 024 million was the lowest responsive bid and is Rs 10 Million less than the 3rd lowest bid.
--- But Wapda vide its letter of February 26, made the bid as non responsive, on the basis that bid security of 2% was not submitted, and that the company has no experience of manufacturing turbine, and supply of turbine out side Russia.
--- On March 3 M/s Power Machines Russia replied to Wapda, informing that 2% bid security in the form of bank guarantee had been submitted along with tender, and the company has large experience of manufacturing turbine, and supply of turbine out side Russia.
--- Wapda accepted that the 2% bid security was submitted, and it was in error.
--- However, Wapda still made their bid non responsive and disqualified the company on the flimsy grounds that no details of model tasting was provided , and on an ambiguous statement on the diameter of the runner that they had not completed any project outside Russia.
Sohail Muzzafar said that from the examination of the complaint, it appears that Wapda initially tried to make the bid of complainant non responsive, on the ground bid security was not submitted. Wapda were proved wrong on this account, and it accepted its fault, but is still trying to circumvent the evaluation criteria of experience, to declare the bid as non-responsive. The sentence letter of Wapda to bidder of March, 7 is strange and uncalled for and amounts to threatening the company and conveying Wapda's annoyance with the company in future projects. The company, however, continues to protest.
The complaint's allegations may kindly be investigated by the ministry, as to why additional one billion rupees are being paid to the 3rd bidder. "Kindly provide detailed report on this complaint, and save Rs 10 million being dolled out by Wapda, Chairman, TI-Pakistan said.
He pointed out that Wapda had also played with Golen Gol Project procurement of Lot 3.2 tenders, for two years, and had caused loss to exchequer due to extra costs, as well as two years time loss. Copies of the letter have been forwarded for action under their mandate and rules and regulations to: Secretary to Prime Minister, Islamabad, Chairman, PAC, Islamabad, Chairman, NAB, Islamabad, Chairman Wapda, Islamabad, and Registrar, Supreme Court of Pakistan, Islamabad.