Chairman, Water and Power Development Authority (Wapda) Lt-Gen Muzammil Hussain (retd) on Wednesday came on the front foot to defend M/s Descon, a company owned by Prime Minister''s Adviser on Commerce, Textile, Industries and Production and Investment, maintaining that doing business while in government is not a conflict of interest.
M/s Descon has 30 percent stake in Joint Venture (JV) with a Chinese company M/s Gezhouba in the construction of Rs 309 billion Mohmand Dam.
He was addressing a press conference to quell the controversy over the bidding process, with critics of the government arguing that Wapda extended a benefit to M/s Descon to appease the Prime Minister''s Adviser who resigned from the company as Director prior to joining the PTI government.
Chairman Wapda faced a volley of questions about the transparency in cost estimates of the dam, declaring bid of CGGC-Descon responsive and for not considering the second bid. He extended extraordinary support to the Prime Minister''s Advisor, saying, "According to him, it''s not a conflict of interest if a person is occupying public office while his/her company does business with the government". The Wapda will award contract to Gezhouba-Descon JV. Gezhouba has 70 percent shares whereas Descon and Voith Hydro have thirty percent shares; work is expected to commence in the next eight to nine weeks with scheduled completion in five years.
"If Descon did not have the required experience in building dams, the company would never ever have been declared responsive," he continued, clarifying that he is not a spokesperson of any private company.
In reply to a question about reasons for declaring JV as non-responsive, he said, Wapda assessed the bid which stated that the non-responsive JV has a capacity disadvantage. Clarifying further, he argued that JV''s experience was limited to building Rs 10 billion dam and if awarded the contract of over Rs 300 billion, it would have capacity issues to undertake work of Rs 180 billion. He further stated that the JV''s E&M contractor also does not have the required experience and added that JV lacks experience in transmission and installation.
"Non responsive JV lacks in experience and qualification as compared to the responsive JV," he added.
Answering another question regarding commencing of work on the project he stated that dams are started during low flow duration which is why Mohmand will start in January. However, he warned that countries like Pakistan are facing fifth generation war - media, social media and interested groups.
Chairman Wapda stated that Wapda has been able to successfully realign this important project after a delay of decades. Removing the legal, financial and technical snags, the project is all set to kick start as early as second week of January. International bidding for eligible firms or joint ventures (JVs) was invited for procurement in accordance with PPRA and PEC provisions.
As many as 23 firms purchased the bids and two JVs submitted their bids. Technical bids were opened on June 26 in presence of JVs. The bids were evaluated by a consortium of consultants including NESPAK, SMEC (Australia) and ACE, wherein CGGC-DESCON was declared responsive. Pre-award technical negotiations are underway and after finalisation of the evaluation process, the contractor is likely to be mobilised in another 10 weeks, by mid March.
The chairman said that all legal, financial and technical impediments in the way of construction of the Dam have been addressed. He said the government has expressed its resolve to provide all necessary resources for completion of this all important project keeping in view the growing water scarcity in the country and to ensure food security in the country.
Responding to a question, Muzammil Hussain said it is the first project of its kind in which the tribal people provided their land in a matter of a few months in the national interest. He also acknowledged the sacrifices rendered by the tribal people living in surrounding areas of Mohmand Dam Project for the peace and security of the country.
The chairman Wapda said his organization is committed to regaining its past glory by executing the much needed major water storage projects like Diamir Bhasha and Mohamand Dams.
He pointed out that WAPDA completed four important projects last year including Neelum-Jehlum hydro power, Tarbela-IV Extension, Golen Gol hydro power and Katchi Kanal projects. He said all the four units of Neelum-Jehlum Hydro Power Project are operational now, supplying cheaper hydro electricity to the national grid.
Wapda is using its own capability to kick start the work as early as in the second week of January including geotech boring, establishment of seismic station, establishment of weather station and preparation of camp site for optimum utilization of low flow period from January to May.
Later on, Federal Minister for Water Resources Faisal Vawda also held a press conference saying that work on Mohmand Dam will start earlier than scheduled and it would be completed before the stipulated time frame. He stated that the government will continue working on projects and will not succumb to any pressure. The Minister lamented that dams could not be constructed in previous years due to negative agenda of some people.
Faisal Vawda dispelled any allegations against Descon, saying misunderstandings have been created by some elements against Descon. He said under the new mechanism of awarding contracts, neither the minister nor Wapda nor any other institution can award a contract to a company without following due procedure. However, his press conference was disrupted after he clashed with a senior journalist who raised objection on award of project to Descon owned by Razak Dawood.
"PTI criticised the LNG deal for the reason that it was awarded on a single bid but now the current government has awarded Mohmand Dam contract on the same basis," the journalist said adding, "How can you confidently say that the process is legitimate?"
Journalists covering the press conference walked out after the minister used foul language in reply to a senior journalist''s query.
"How can I be responsible for bidding of those contracts'' that took place when the incumbent government was not in power? Second if you find any controversy or want to concoct one, you can investigate it as you like," he added belligerently.
The minister later stated: "because you are older to me I am answering your question. If someone else had asked me this question I would not have answered and taken away the mike."
Vawda''s rude response immediately angered the media covering the press conference who walked out in protest and his apologies were not accepted.
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