April 22, 2008	Tuesday	Rabi-us-Sani 15, 1429

KARACHI, April 21: Ports and shipping experts have raised serious objection over the procedures adopted by the Port Qasim Authority (PQA) for hiring tugs and pilot boats.

They alleged that the PQA’s operations department has overstepped its mandate by entering into an agreement with a foreign firm on the basis of the tender, which was earlier scrapped.

It is further alleged that the entire deal has been tailored to benefit some vested interests at the cost of the port and the port users as serious flaws were left in the agreement without any basis.

According to the details the PQA invited bids in November last year for hiring of two ASD tugs of 45 and 60 tons bollard pull capacity and for one pilot boat of 20 knots speed. Besides, other terms and conditions the tender fixed the age of these crafts to be not more than five years.

In all six firms procured tender documents but only two offered their bids, which also turned out to be much short of technical requirements sought in the tender. The rates offered in the bids were also on higher side. As a result the PQA scrapped the tender, the experts disclosed.

However, the port authority’s evaluation committee recommended that in view of the emergent requirement of the port due to fast approaching monsoons, the negotiations with the two firms be carried out in accordance with PPRA Rules, 2004 at a lowered cost by relaxing some technical conditions. According to PQA’s insiders on the recommendations of the committee the scrapped tender was re-negotiated with both the parties – M/s MEW and M/s SMIT - with the former expressing its inability to offer any craft, while the latter was ready to offer its craft on fresh terms and conditions.

The sources said that on the plea of time constraints the PQA high-ups rushed up and entered into an agreement with M/s SMIT on April 2, 2008 without getting proper approval from the board, which met at least five times between November and March 2008.Insiders said that even some of the board members have raised serious objections over the PQA’s high-ups unilateral decision of entering into an agreement for hiring a tug and pilot boat.

The board members also challenged PQA’s plea of onset of monsoon by next month that necessitated the immediate hiring of these crafts to handle larger vessels. It was pointed out that the PQA earlier signed a contract for hiring of crafts and on June 2, these were employed at the port.

The original tender fixed the age of crafts at five years whereas the agreement reached with M/s SMIT relaxed it up to 8-9 years.

Similarly, it has been also questioned as to why the rates were accepted in euro instead of dollar at a time when the parity of the former is rising rapidly and the latter is falling in the world market. Since the PQA’s high-ups are now seeking ex-post facto approval from the board but some members were of the view that the board can only grant ex- post facto approval to actions taken according to law.