ISLAMABAD: The Metropolitan Corporation Islamabad’s (MCI) water supply directorate will refund the Unites States Embassy Rs22 million that it tookto lay a separate water supply line to the embassy’s premises in the Diplomatic Enclave.

Sources said the directorate made an unauthorised deal last year through which it received Rs22.8 million from the US embassy for the project.

Sources said that in a letter dated Aug 21, 2019, Director Water Supply Iqbal Shahid told the embassy: “Cost of laying a separate pipeline and execution of necessary allied works is estimated at Rs22.75 million. Since MCI does not have the requisite fund, the concerned authority of US embassy is to share the cost of work by depositing Rs22.75 million.”

Mayor refused to approve file for project to lay separate line to embassy premises because proper tendering was not carried out

The embassy provided said funds to the MCI in response. The sources said that, being a government entity, the MCI was supposed to fund the project itself. Because it did not have the money, the embassy helped by providing funding from it’s own resources in the form of an advance water bill for the next three years.

But the directorate was not authorised to collect the funds on the pretext of an advance bill payment, and doing so to carry out the project was a violation of the rules, they said. The directorate also did not call bids or tenders to award the project, making it controversial.

When the matter was brought to the notice of Mayor Sheikh Anser Aziz last year, he did not approve the file.

Sources said that the directorate began the project through a contractor without observing the MCI’s rules for awarding a contract following a competitive process. When the mayor rejected the file, the directorate had no choice but to refund the US embassy.

“I rejected the file because proper tendering was not carried out,” Mayor Aziz told Dawn on Monday. He said there was no provision under which a routine contract could be awarded on the basis of a single tender.

He added that providing water connections and laying lines in the Diplomatic Enclave is the MCI’s responsibility, “but the way this project was handled by the water directorate is questionable.”

When asked, he said he would “look into” taking action against the directorate’s officials.

Another MCI official said that the US embassy’s made a positive gesture to help the MCI, but the directorate did not follow the rules for awarding a contract which embarrassed the corporation.

Sources said that earlier this month, the water directorate wrote an official letter informing the US embassy that it would be refunded the money, but the directorate also recommended a specific contractor to the embassy and suggested the embassy have the work carried out by the contractor, who the directorate said “is fully capable to execute the work”.

“We have hundreds of approved contractors, but suggesting only one contractor to anyone raises eyebrows,” an MCI engineer said.

The March 2 letter, which is available withDawn, said: “The water supply directorate was earlier requested to provide separate water connection to US Embassy…to meet the additional water requirements of embassy in order to complete the task. The cost of work amounting Rs 22.75 million in favour of DDO (deputy disbursement officers) production-I division has also been deposited by the embassy. MCI in order to effectively utilise the funds maintained a separate account and planned to undertake the necessary works as per standards practice and laws of Pakistan could be arranged in restricted time.”

Written by Mr Shahid, it added: “MCI was supposed to execute the work on urgent basis, but due to non-existence of financial structure of the formation the proposal was not got approved from the competent authority. As the work is to be completed on urgent basis, hence the water supply directorate of MCI may not be able to execute the same without proper administrative/financial approval of the authority and other complications at this stage.”

It said that it is assumed that all other technical assistance will be provided by the directorate to execute the project on a priority basis at the end of the US embassy.

The letter said: “We recommend A.Y Attar Enterprises the approved contractor of MCI/CDA and fully capable to execute the work as early as possible is shown his willingness for completion of the work.”

Published in Dawn, March 31st, 2020