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Pakistan’s Mohmand Dam project handed to firms, controversy stirs

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  • Pakistan's Mohmand Dam project handed to a number of firms
  • One of the firms, Descon, is owned by Pakistan Prime Minister Imran Khan's advisor
  • Observers are claiming the decision involves "conflict of interest"
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Dubai: Controversy stirred after Pakistan’s long awaited Mohmand Dam project was handed to Pakistan Prime Minister, Imran Khan’s advisor’s company.

The 300 billion PKR (more than Dh7 billion) project’s construction contract has been granted to a joint venture of China Gezhoub – a Chinese construction and engineering company, Voith Hydro and Descon – a Pakistan-based engineering company owned by Khan’s adviser, Abdul Razak Dawood.

Dawood is Khan’s advisor for commerce, textile, industry and production, and investment.

However, observers are not content with the decision and are claiming that there is a “clear conflict of interest” that arises due to the decision.

People are saying that Pakistan Tehreek-e-Insaf (PTI) claims of transparency are getting damaged after the project was awarded to its chairman and currently Pakistan’s premier, Khan’s advisor.

The bidding process also came with a number of controversies as, according to the country’s Dawn newspaper, just one consortium’s financial bid was considered. Another bid that was pitched by another joint venture consisting of the Frontier Works Organisation (FWO), Andritz Hydro and Power China was disqualified.

However, Pakistan’s Water and Power Development Authority (WAPDA) is defending the choice and selection process. A spokesperson from the entity explained that the bid of the second consortium was disqualified on technical basis, Dawn reported.

Moreover, Descon is being called “the biggest firm in Pakistan” by WAPDA officials as they defend its selection.

In a press conference held on January 2, Muzammil Hussain, chairman of WAPDA, announced that the preparations to start the construction will be finalised within the next two weeks, according to Dawn.

Upon the announcement, the hashtag #MohmandDam trended on Twitter across Pakistan. Social media users and officials expressed their thoughts on the issue.

Pakistani politician and parliamentary leader of Pakistan People’s Party (PPP), Sherry Rehman, @SRehmanOffice, tweeted about concerns over awarding the major project to Dawood: “The government awarding the Rs309 billion #MohmandDam contract to Abdul Razzak Dawood’s company involves a blatant conflict of interests. PPP will raise it on every forum - Sen @sherryrehman.”

Other tweeps raised concerns too.

User Ahmed Nawaz, @AhmedNawazAZ, wrote about the times Khan had claimed that previous governments made decisions that involved conflict of interest: “Dear Prime Minister @ImranKhanPTI We were always told about ‘conflict of interest’ law when PTI was in opposition but now we are watching the same in your government as Razzaq Dawood’s Descon has been awarded the tender of dam to be built #MohmandDam.”


Ahmed Nawaz@AhmedNawazAZ

https://twitter.com/AhmedNawazAZ/status/1080399851353972738

Dear Prime Minister @ImranKhanPTI We were always told about “Conflict Of Interest” Law when PTI was in opposition but now we are watching the same in your government as Razzaq Dawood’s Descon has been awarded the Tender of Dam to be built #MohmandDam


2

4:46 AM - Jan 2, 2019
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However, there are those who think that due to Descon’s success in the country, it is “no surprise” that the contract was handed to the engineering firm. “#Descon is probably the best engineering company with more technical credentials than any other company in Pakistan. They have huge background of some of the most challenging hydel Projects which no other could do. To me awarding #MohmandDam to them is no surprise. Not a paid tweet,” tweeted Shafaat Ali, @iamshafaatali.


Shafaat Ali@iamshafaatali

https://twitter.com/iamshafaatali/status/1080407609340055553

#Descon is probably the best Engineering company with more technical credentials than any other company in Pak. They have huge bckgrnd of some of the most challenging Hydel Projects which no other could do. To me awarding #MohmandDam to them is no surprise. Not a paid tweet


2,856

5:17 AM - Jan 2, 2019
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According to WAPDA chairman Hussain, China Gezhouba has 70 per cent share in the project, whereas Descon and Voith Hydro have 30 per cent combined.
 
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It's FWO and Hum patwari nahi hain brigade who is behind fanning the controversy when there is nothing wrong.
 
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I think a U-TURN is due as a strategy
 
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Descon has completed Mangla Dam raising , Taunsa Barrage rehabilitation & modernization , Mirani Dam and many other hydal projects. They have expertise and resources to do the thing. I think it is awarded on merit and it is just a coincidence that Descon's ex-head happens to be advisor of PM.
 
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Contract bidding was start and done in Previous govt .. and before joining advisory Abdul Razak Dawood had left the directorship of the company ...

If there is any controversy than people with evidence should go with legal ways
as per news, he is still the largest shareholder of the company.it's conflict of interest.he should resign from his post.
 
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as per news, he is still the largest shareholder of the company.it's conflict of interest.he should resign from his post.
us ka resign sa kia farak paray ga....his repute is good n clean...if he resigns,u loose one of experts doing great work...
 
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They have skills and knowledge. Let them do the job. Whereas our local engineers still follow old methodology. So far we haven’t put efforts to improve their skills and most of them are rusted or corrupt.

We need to hire overseas Pakistani engineers to upgrade our rotten engineering technology.
 
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Ofcourse ppp and pmln could not bring anything for country except corruption how.can they let it build. Descon is well reupted company for such projects
 
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PPRA rules violated in award of Mohmand Dam contract:
TIP

The anti-corruption watchdog -- Transparency International Pakistan (TIP) -- has called the award of Rs300 billion Mohmand dam to a Descon-led consortium on a single bid basis a violation of PPRA Rules.
In a letter to
chairman of Water and Power Development Authority (Wapda) also copied to prime minister and the Supreme Court registrar, TIP listed a number of violations of the Public Procurement Regulatory Authority (PPRA) Rules in award of contract. The letter also questioned the credibility of the Chinese company -- the Gezhouba Group Corporation which has been allegedly involved in irregularities in World Bank and Nepal.

The contract is already facing a lot of controversy over “conflict of interest” allegations as Descon is owned by Adviser to the Prime Minister on Commerce Abdul Razzak Dawood. The letter signed by Justice Zia Perwez- former judge of the Supreme Court of Pakistan and current trustee of Transparency International Pakistan - says TIP has received a complaint about violation of Public Procurement Rules 2004 on award of Rs300 billion Mohmand Dam to China Gezhouba, Voith Hydro & Descon on single bid basis.

“The complaint has been examined by TIP and prima fascia the award of contract of single bid amounts to mis-procurement under Rule 50. Any unauthorised breach of these rules shall amount to mis-procurement,” says the letter a copy of which is available with The News.

The letters says that the Wapda issued tender documents for construction of the main dam in November 2017 and in response two bidders — CGGC/Voith-Descon joint venture and FWO-PC joint venture — submitted bids by June 26, 2018.

It says the Gezhouba Group Company has dubious background as the World Bank Group on May 29, 2015 announced the debarment of the company and its affiliates for a period of 18 months. In addition, China Gezhouba Three Gorges Engineering Co Ltd and its affiliates are also debarred for a period of six months.

The letter adds that on November 13, 2017, Nepal cabinet scrapped a $2.5 billion deal with China Gezhouba Group Corporation to build the country's biggest hydropower plant, on lapses in the award process. Also on March 9, 2017, Wapda awarded Rs180 billion worth of two contracts to Chinese firm China Gezhouba for carrying out main civil works in the first stage of the Dasu hydropower project. But till today, no work has been started and contractor has made extraordinary claims.

“According to PPRA Rules 2004, single bid is not allowed to be considered, unless Wapda has awarded a contract on competitive basis, similar product, in same fiscal year, to another contractor, and the single bidder price is comparable to last awarded contract,” says the letter.

The letter quotes example of a previous award on single bid basis which resulted in huge loss to national exchequer. “LNG Terminal at Port Qasim was awarded in 2014 to single bidder, EPTL at tooling charges of $0.6601/MMCFD. This contract is presently under NAB inquiry, for alleged illegal award. The second LNG Terminal at Port Qasim was awarded in 2016 based on competitive bids, to JV of FOTCO and Gas Port at competitive price of tooling charges 0.4177/MMCFD. The result of competitive bid indicates that the actual market rate is 36 percent less than the rates of single bidder,” says the letter.

It says TIP noticed that Wapda has not posted on PPRA website the Evaluation Report on prescribed preform issued by PPRA according to Rule 35. “Wapda chairman is requested to examine the complaint, in view or PPRA Rules, and also the credibility of China Gezhouba Group Company due to past irregularities in World Bank, Nepal and other contracts. In case the allegations are correct, cancel the tendering process, and re-invite the tender in compliance with PPRA Rules, and also take action against those who are found responsible for this alleged mis-procurement,” the TIP demanded.

https://www.thenews.com.pk/print/414389-ppra-rules-violated-in-award-of-mohmand-dam-contract-tip
 
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Ganja patwari league & gadari party are the obstacle in every good thing for Pakistan.
 
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