The government has invited bids for construction of 785 kilometres Iran-Pakistan (IP) gas pipeline project from pre-qualified parties, it is learnt.
According to official documents available with BR, the Inter State Gas System (ISGS) has invited interested contractors for pre-qualification of engineering, procurement, construction and commissioning of about 785 kms long 42" dia gas pipeline for the transportation of one Billion Cubic Feet per Day (bcfd) high pressure natural gas from an offtake point located near Gwadar to gas integration point near Nawabshah (including the pipeline, compressor stations, main line block valve stations, pig launching and receiving stations, cp installations, other related equipment/installations and pipeline crossings across various nullahs/rivers including River Indus).
The project can be offered either on EPC or turnkey basis as per the PQ document. Officials told Business Recorder that leading Russian gas exploration company Gazprom is the favourite to build and develop IP project and has already submitted Expression of Interest in response to ISGS''s invitation last year.
Iran has assured Pakistan of $500 million funding for the project and as per draft agreement Pakistan is bound to complete the project by the end of 2014 otherwise it will have to pay a daily penalty of $1 million to Iran. As per draft agreement of the project the contractor will have to complete the project within two years - 2012-14. The government of Pakistan is expected to allow exemptions in duties and taxes on the import of certain materials required for gas import projects. The EPC contractors are also expected to be exempted from sales tax for services provided on such projects.
"PQ is open to EPC contractors/joint ventures registered with Pakistan Engineering Council (PEC) in an appropriate category for construction of engineering works. Foreign contractors not registered with PEC shall have to submit an undertaking to get themselves registered with PEC before the award of contract to them," the document added. PQ applicants are required to have implemented Quality Management System that complies with the requirement of the latest edition of ISO-9000, OHSAS 18001 and ISO 14001 Certificates.
PQ shall be evaluated as follows: Demonstrate their capabilities for financing and relevant experience via a formal response to this PQ by filling out the questionnaire prescribing the PQ criteria strictly in accordance with the instructions given in the PQ document.
Bidders will be pre-qualified using the information provided in response to the questionnaire for PQ. (evaluation criteria) The pre-qualified parties shall be sent request for proposals (RFP) for submission of detailed technical and financial proposals in due course. The PQ should be submitted on or before June 8, 2012 along with a deposit of non-refundable Rs 5000 or equivalent in USD as processing fee.