The Ministry of Communications has turned down a proposal of a Chinese company to launch mass transit projects in Peshawar, Rawalpindi and Islamabad on turn-key basis.
M/s Beijing Urban Construction International Group Ltd (BUCG) had offered to undertake design and construction of the mass transit projects, sources told Business Recorder here on Wednesday. They said the ministry, in response to Economic Affairs Division query, observed that the company failed to submit its financial soundness and resource profile for the consideration of the proposal.
For ensuring transparency and competitiveness, principal method of procurement which includes open bidding in line with the guidelines of Public Procurement Regulatory Authority (PPRA) functioning under the administrative control of the Ministry of Finance should be adopted, they added.
The sources said the ministry suggested that instead of evaluating the proposal offered by a single company, the projects may be advertised in the international press and the Expressions of Interest (EoIs) may be invited from the prospective bidders having the requisite expertise and resources for handling similar projects on turn-key basis.
Following the procedure, a rational and competitive bid having the most favourable terms and conditions particularly for arranging long-term financial credit on reasonable interest rate can be accepted, they added. They suggested that prior to offering these projects to international bidders, a feasibility study be made mandatory for assessing the financial viability of projects.