Clarification

04 Apr, 2013

This is apropos news item carried by Business Recorder on April 3, 2013 regarding award of contract for laying of Iran-Pakistan Pipeline to Tadbir Energy Company of Iran. It is clarified that the news item is baseless, misleading and replete with inaccuracies.
It is to be clarified that no inquiry is being conducted at any level in the Government regarding the award of the contract. Tadbir Energy was nominated for the project under the Government to Government agreement by Iran; the G to G agreement was decided after mutual consultations and was agreed at the highest level.
Under the G to G arrangement, a $500 million funding facility in lieu of services will be provided by Iran. To allege that $450 million have been received in kickbacks out of a total amount of $500 million is a figment of anyone's imagination and a completely bogus claim.
"Moreover, the nominated entities of both the Governments are negotiating the Engineering Procurement Construction (EPC) contract. The contract, contrary to what has been alleged, has not even been awarded to anyone as yet. The statistics that have been provided in the report are most untruthful. Moreover, Mobin Saulat, the present Managing Director, was not appointed after the departure of Hassan Nawab. Two Managing Directors had served ISGS prior to Mr Saulat's appointment which was made in accordance with the laid down procedure, rules and regulations.
"Such speculative and unfounded stories can only damage, what is the most important project, in overcoming Pakistan's debilitating energy crisis, foreign investment and our bilateral relations in the comity of nations," the clarification concludes.
Islamabad BR reporter adds: It may be added that the Iran-Pakistan gas pipeline is an internationally-important venture that will eradicate gas shortages in Pakistan by up to 40 percent and bolster economic co-operation in the region. President Asif Ali Zardari and Iran's President Mahmoud Ahmedinejad conducted the groundbreaking of this peace pipeline on March 11.
This international project has materialised despite opposition from certain countries in order to secure the energy future of Pakistan. The project involved extensive negotiations and has been progressed through a highly transparent and competitive process in compliance with all applicable procurement rules and laws. No contract for the laying of the 781-kilometer-long pipeline within Pakistan has been awarded. Therefore, analysts argue, the claim that the contract has been awarded to an Iranian company, Tadbir, is verifiably wrong. Furthermore, the transfer of ISGS managing director Hassan Nawab was done prior to Dr Asim Hussain assuming his position at the Ministry of Petroleum and Natural Resources, according to sources.

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