Neelum-Jhelum power project: tender notice violation of PPRA rules, NAB's directives: TI-P

The tender notice issued by National Transmission and Dispatch Company Ltd (NTDCL) for the Neelum-Jhelum power project transmission line is violation of Public Procurement Regulatory Authority (PPRA) rules and NAB's directives, according to Transparency International Pakistan.
TI-Pakistan Chairman Sohail Muzaffar in a letter sent to Minister for Water and Power Khawaja Muhammad Asif on April 2, while inviting his attention to TI-Pakistan letter sent on March 13 on the alleged violation of PPRA Rules in the award of transmission line unsolicited Rs 25 billion contract for the Neelum-Jhelum power project transmission line to a Chinese firm, appreciated the decision taken by the federal government under the instructions of the Prime Minister to re-invite the tenders, through NTDC.
However, he said the NTDCL tender notice of Neelum-Jhelum power project transmission line, published in newspapers on April 2, was violation of PPRA Rules and also violation of NAB's directives of January 18. Chairman, TI-Pakistan has made following observations which, he said, needs attention of the minister;
1. JV and Consortium have been disallowed, which is against the prudent open competitive bidding in Pakistan as well in vogue internationally.
2. PPRA has allowed use of Standard Bidding Documents (SBDs) of the Pakistan Engineering Council (PEC) for "works" only as per PP Regulations 2008. Following SBDs of PEC shall be used for works. According to PEC standard form of bidding documents (civil works), the mandatory provisions not to be amended / substituted except as instructed by PEC, a "bidder or tendered" means any person or persons, company, corporation, firm or joint venture submitting a bid or tender.
3. The tender fee of Rs 10,000 is too high, as according to Rule 23 (5) the procuring agency shall provide a set of bidding documents to any supplier or contractor, on request and subject to payment of price, if any, explanation.- for the purpose of this sub-rule price means the cost of printing and providing the documents only.
4. According to NAB instructions of January 8, all procuring agencies should make available the bidding or prequalification documents and other related communication in downloaded format, for any interested bidder or party, at their website to use these documents for submitting bid(s) with admissible tender fee, if any, paid in bank as prescribed by procuring agency. NAB has also declared mis-procurement as liable for cognisance by NAB under relevant section of NAO 1999.
The minister has been requested to examine the above four issues, and if they are correct, the NTDCL may be advised to comply with PPRA rules, regulations and NAB directives, and allow JV and Consortium to participate in the bidding process (it appears that few selected contractors will benefit from this illegal restriction), and also reduce the fee, and to upload the tender on NTDC and PPRA websites.
Copies of the letter have been forwarded for action under the rules regulations to: Secretary to Prime Minister, Islamabad, Chairman, NAB, Islamabad, Chairman, Wapda, Islamabad, Registrar, Supreme Court of Pakistan, Islamabad, MD, NTDCL, Islamabad, and MD, PPRA, Islamabad.
On January 8, 2014, NAB had circulated measures for prevention of corruption in public procurement process for transparency and meritocracy to all ministries, divisions, departments, regulatory bodies, and corporations, etc, as follows:
To plug the possible corruption holes during procurement process, NAB under its prevention regime, as enshrined in section 33B and 33C of National Accountability Ordinance (NAO) 1999 read with Public Procurement Rules 2004 "advises to abide by the following instructions, in order to ensure transparency in the public procurement process:
(a) Registration or enlistment of contractors on periodic basis a procurement agency is not needed under the PPR 2004 nor is any charging of fee on this account admissible. This practice should be stopped forthwith as it supports the corrupt practices of collusive limited competition to favour the favourites.
(b) A procurement agency may adopt the process of pre-qualification of contractors to establish their ability to perform for a particular work, therefore enlistment of the contractors, as condition in pre-qualification is not required and cannot be imposed as condition for pre-qualification under PPR 2004.
(c) It is further required to completely specify the conditions and circumstances explained in rules 15 and 16 "pre-qualification of contractors and suppliers" and "pre-qualification process" of PPR 2004.
(d) All procuring agencies should make available the bidding or pre-qualification documents and other related communication in downloadable format, for any interested bidder or party, at their websites to use these documents for submitting bids with admissible tender fee, if any, paid in the bank as prescribes by procuring agency. This will break cartelisation and collusive biddings. (Instructions under prevention regime of NAB).
(e) Mis-procurement declared and falling within rule 50 of PP Rules 2004 at any stage shall be liable for cognisance by NAB under relevant section of NAO 1999. These instructions were issued after consultation with PPRA and with the approval of DG ASP NAB HQ/President Prevention Committee on procurement, projects and Auctions, constituted by Chairman NAB under section 33C of NAO 1999.