18-05-2025
- Business
- Business Recorder
Power transmission line: Senate panel inquires into ‘ADB-401B-2022' tender anomalies
ISLAMABAD: A meeting of the Senate Standing Committee on Economic Affairs was held at Parliament House under the chairmanship of Senator Saifullah Abro.
The committee discussed the tender 'ADB-401B-2022' procurement of goods -500kV double circuit quad bundle transmission line from Sangal to 500kV Maira Switching Station (approx.83Kms), using ACSR' 'bunting' conductor. The Officials informed the committee that the bidding documents were published at the NTDC after approval from the ADB on May 6, 2022.
Bids were opened on July 7, 2022. On the bid opening date, total 25 bids were received from which 4 bids received for Lot-II: conductor.
ADB's ACSR Bunting Conductor: Chinese firm urges authorities to reevaluate tender
The committee was briefed that M/s Jiangsu Zhongtian Technology (ZTT), China was non-responsive due to a non-compliant power of attorney and M/s Qingdao Hanhe Cable, China was also non-responsive due to non-fulfillment of performance criteria. However, M/s Henan Tong-Da, China and M/s Newage Cables, Lahore were found to be responsive.
After which, Abro raised concerns that on which basis the two bidders were declared non-responsive. The officials responded that one was due to a non-compliant power of attorney, and the other failed to meet the required criteria.
The committee chairman inquired as to which specific criteria had not been fulfilled, to which the officials explained that the power of attorney was not attested and the bidder had refused to have it signed. Following this, the committee recommended to invite the bidder to the next meeting to hear their perspective as well. The chairman also directed that complete details of the tender, from initiation to conclusion, be submitted to the committee.
During the discussions, the committee chairman said the World Bank's project is being completed ahead of time, while yours doesn't even start on time. He added that a project of World Bank in Sindh which's completion period was three years, but it was completed in just 1.5 years. So why are projects of power delayed, and why does their work start after 10 years, there must be some issue. He directed them to look after these issues and make decisions in the interest of the country and save money.
The committee chairman also highlighted as to why was the tender awarded to the third lowest bidder, instead of first one from which Rs500 million could have been saved. To this effect, the committee recommended that a letter should be sent to the FIA to recover this amount.
The committee chairman mentioned that the letter being presented regarding ACSR bunting conductor dates back to 2017, which had already been burnt. However, it was presented again in the power committee in 2023, where the individual even recalled the letter number. The committee chairman remarked that they are manipulating, stating that the party originally ranked third lowest was elevated by applying a 15% increase. The committee chairman recommended that the Power Division should issue a letter and the Secretary of Economic Affairs should pursue the matter.
It was also discussed that in Lot 1, an amount of Rs1.2 billion was incorrectly entered under the wrong column, as pointed out by the Members of the Board of Directors themselves in December and therefore, it should be recovered. However, the BoD representative disagreed with this stance, stating that an inquiry had already been initiated into the matter and a final decision should be awaited.
Surprisingly, an officer who had previously expressed, during a power committee meeting that the amount should indeed be recovered, today the Managing Director NESPAK was claiming that the committee's minutes did not reflect such a recommendation.
The NESPAK representative was seen engaging in misleading statements and was unable to respond to any of the chairman's questions. Moreover, his ability to recall, word for word, the contents and reference number of a burned 2017 letter clearly shows that something was being concealed.
The Officials briefed the committee about the Sindh Solar Energy project and Sindh Flood Housing Projects/other housing projects in Sindh under the foreign funding along with the tendering process for procurement/NGOs along with quotation, criteria and list of beneficiaries.
The Sindh Flood Housing project's CEO told that the 70% of Sindh submerged in water, 24 of 30 districts declared calamity-hit, 12.36 million people affected and 2.1 million houses damaged or destroyed.
He further said it is world's largest housing initiative which is restoring 2.1 million homes affected by the 2022 floods in Sindh.
First time in Sindh a cumulative data of 2 million household benefitting -12 million people and data collected from 24 districts (130 fields). They also mentioned the donor partners which were the World Bank, European Investment Bank, Islamic Development Bank, UNIDO and the ADB.
The committee chairman asked how much had been paid to NGOs so far, to which the CEO responded that Rs4 to 5 billion had been paid. The chairman recommended that the relevant record be submitted.
Subsequently, the chairman inquired about the percentage allocated to NGOs. The NGO representative informed that they are being given 9.5%. The chairman proposed that I can give you the NGOs at 3.5%. In response, the CEO stated that it is a World Bank requirement to allocate 4% to NGOs. To this, the chairman remarked that decisions are also made in the interest of the country, so you should consider the national interest and save Sindh's funds.
The meeting was attended by Senators Rahat Jamali, Fawzia Arshad, Rana Mehmood ul Hassan, Haji Hidayatullah Khan and senior management from ministry/relevant departments.
Copyright Business Recorder, 2025
