Prime Minister Yousuf Raza Gilani is set to blast the top guns of the Ministry of Petroleum and Natural Resources for ignoring the lowest bid of Vitol/Fauji Foundation for billion dollars LNG contract in the meeting of Economic Co-ordination Committee (ECC) of the Cabinet scheduled to be held on Tuesday, March 30.
In a major development, Petroleum Ministry is pressing '4 Gas' and 'GDF Suez' to consider Shell company, whose bid was earlier turned down due to highest price. "But no one in Petroleum Ministry is ready to consider the proposal of Vitol/Fauji, which had offered even lowest price than 'GDF Suez' and Shell," sources said.
According to sources, the Ministry of Petroleum and Natural Resources has reportedly kept Prime Minister in the dark on Vitol/Fauji Foundation's joint proposal for 3.5 million tons LNG contract as its proposal was not put before ECC. Shaukat Tarin came to know about Vitol/Fauji Foundation bid after ECC had awarded the contract to 'GDF Suez'," sources said, adding that this had prompted Tarin to initiate inquiry.
The ECC meeting on March 9 was told that complaint of Vitol/Fauji Foundation was based on misconception. "In fact, they came very late, and their bid was floated for the supply of LNG only for five years," Petroleum Ministry said. But sources said that the Price Negotiation Committee (PNC) had also approved the bid for presenting before the ECC. "But Petroleum Ministry did not bother to present it before the ECC, despite being the lowest bidder, which prompted former Finance Minister to initiate an inquiry," sources added.
Fauji Foundation Managing Director had approached Finance Minister (ECC Chairman) and alleged that their joint proposal with Vitol was not entertained despite being the lowest bid. After receiving a complaint, the Finance Minister (ECC Chairman) at that time had directed Petroleum Ministry to clarify.