03 Jan 19

~TRANSPARENCY 4-C, Mezzanine Floor, Khayaban-e-lttehad, Phase VII,
Defence Housing Authority, Karachi.

Tel: (92-21) 35390408, 35311897-8,
~ INTERNATIONAL-PAKISTAN Fax: (92-21) 35390410
E-mail : [email protected]
Website: www.transparency.org.pk
3rd January, 2019 TL19/0301/9A
Chairman WAPDA,
701- WAPDA House,
The Mall,
Lahore.
Sub: Complaint on Violation of Public Procurement Rules 2004, On Award ofRs300 billion
Mohmand Dam to China Gezhouba,Voith Hydro & Descon on Single Bid Basis.
Dear Sir,
Transparency International Pakistan has received a complaint Violation of Public Procurement

Rules 2004, on award of Rs300 billion Mohmand Dam to China Gezhouba,Voith Hydro &
Descon on Single Bid Basis.
The complainant has made following allegations;

That,
1. 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.
Background of Gezhouba Group Company
a) The World Bank Group on 29 May 2015 had announced the debarment of Gezhouba
No. 1 Engineering Co. Ltd., Gezhouba No. 5 Engineering Co. Ltd., and Gezhouba
No. 6 Engineering Co. Ltd. and their 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.
b) On 13 November 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.
c) On 9 March 2017, W APDA awarded Rs 180 billion worth of two contracts to a

Chinese firm China Gezhouba Group Company (CGGC)for carrying out main civil
works in the first stage of the Dasu hydropower project. But till toady, no work is
started and Contractor has made extra ordinary claims.
2. 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
A NON-PARTISAN, NON-PROFIT COALITAION AGAINST CORRUPTION

Donations exempted from tax U/S 2 (36) (c) of I. Tax Ordinance 2001
~TRANSPARENCY Continuation Sheet No ..........
~ INTERNATIONAL-PAKISTAN
year, to another contractor, and the single bidders prices is comparable to last awarded
contact.
3. LNG Terminal at Port Qasim was awarded in 2014 to single bidder, EPTL at tooling
charges US$ 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
36o/o less than the rates of single bidder.
The complaint has been examined by TI Pakistan and prima fascia the award of contract of
single bid amounts to mis-procurement under Rule 50, Mis-procurement.- Any unauthorized
breach of these rules shall amount to mis-procurement.
It is also noticed that W APDA has not posted on PPRA website the Evaluation Report on
prescribed preform issued by PPRA according to Rule 35.
Chairman WAPDA 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, andre-invite
the tender in compliance with PPRA Rules, and also take action against those who are found
responsible for this alleged mis-procurement.
TI Pakistan is striving to have Rule of Law in Pakistan, which is the only way to eliminate
corruption and have good governance in country.
'
With Regards, ~
~
Justice Zia Perwez
Former Judge of Supreme Court of Pakistan and High Court of Sindh
Trustee- TI-Pakistan
Copies forwarded for the information and for action under rules:
1. PSPM, Prime Mister Office, Islamabad.

2. Chairman PAC, Islamabad.
3. Chairman, NAB, Islamabad.
4. Registrar, Supreme Court of Pakistan, Islamabad.
5. Managing Director, PPRA, Islamabad.

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~TRANSPARENCY 4-C, Mezzanine Floor, Khayaban-e-lttehad, Phase VII,

Defence Housing Authority, Karachi.

3rd January, 2019 TL19/0301/9A

Transparency International Pakistan has received a complaint Violation of Public Procurement

The complainant has made following allegations;

Background of Gezhouba Group Company

c) On 9 March 2017, W APDA awarded Rs 180 billion worth of two contracts to a

A NON-PARTISAN, NON-PROFIT COALITAION AGAINST CORRUPTION

1. PSPM, Prime Mister Office, Islamabad.

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