Hydropower contracts: World Bank expresses inability to communicate with Chinese company

Responding to Power Construction Corporation of China Limited''s request for reconsideration of Pakistan Dasu Hydropower Project Contracts MW-01 and MW-02, the World Bank expressed its inability to communicate with the Corporation''s concerns until notification of the contract award. Earlier, the apex court had asked the federal government to take up with the World Bank the matter of ousting Power Construction Corporation of China from award of contract of construction of civil works of Stage-I of the Dasu Dam project. Besides, the apex court had also provided an opportunity to the Corporation to approach the World Bank for disposal of the matter.
Wapda had invited sealed bids for the construction of civil works of Stage-I of the Dasu Dam project and finalised pre-qualification of M/s Power Construction Corporation China and another Chinese company; however, the Corporation alleged that Wapda barred it from taking part in the bidding process on the "dictation" of the World Bank. The Corporation had invoked the Lahore High Court''s jurisdiction to substantiate its claim but the Court dismissed plea on grounds of maintainability to which the Corporation challenged Lahore High Court''s verdict before the Supreme Court.
After a number of hearings in the matter, the apex court on September 02,2016 asked the federal government to take up the issue with the World Bank. Filing the World Bank''s response through a civil miscellaneous application in the matter on Saturday, counsel for the Corporation, Salman Aslam Butt, submitted a copy of a letter from the World Bank to his client.
Writing the letter to authorised representative of the Corporation, World Bank'' Task Team Leader of Dasu Hydropower Project Masood Ahmad said, "We would like to emphasise that the procurement process for these two contracts is still ongoing - the World Bank has fully examined and considered your communication, however, the Bank is prohibited by the applicable procurement policy from entering into discussion or correspondence in relation to an ongoing procurement process until the Borrower''s (Government of Pakistan and Wapda - implementing agency for the Borrower) notification of contract award".
Dispatching a copy of the letter to Abdul Aziz Khan Durrani, Acting GM and PD, Dasu Hydropower Project and Inayet Ali Chaudhry, Chief Engineer (Contracts) of the project, Masood Ahmad further said while addressing the Corporation, " If, after notification of contract award, your company is not satisfied with the Borrower''s written explanations regarding its disqualification from the procurement process for MW-01 and MW02 and wishes to seek a de-briefing meeting with the World Bank to discuss your company''s application, it may do so at that time".
Citing the contents of the letter, the Corporation'' counsel pointed out that his client essentially understands that Wapda (i:e the Borrower) has been entrusted with the exclusive responsibility for conducting the bidding process leading up to the award of the contracts under consideration in the matter in hand. Salman Aslam Butt further said it appears that the authority on whether to pre-qualify the his client is exclusively vested in Wapda and the World Bank can merely debrief the Corporation subsequent to the award of the contracts.
It is important to mention here that after a brief hearing of the matter, the Supreme Court has remarked on September 4, 2016, saying the final decision in the instant matter is connected with the World Bank''s concluding response over the Chinese Corporation''s contentions. The matter is expected to be taken up soon after Eid-ul-Azha holidays.