HYDERABAD: Soon after the deferment of bidding process for the Rs40bn Kalri Baghar (KB) Feeder lining project, the National Accountability Bureau (NAB) on Wednesday asked the project director to clarify as to why a particular procedure was adopted instead of certain others available in the relevant law.

The bidding was scheduled for March 20 but put off to April 5 through a corrigendum issued by the project director. NAB has raised several queries as well and described the project director’s different actions as ‘confusing’.

It has asked PD Mukhtiar Abro to clarify with ‘plausible justification’ in view of the sealed ‘notice inviting tender (NIT)’. The letter written by the NAB additional director (staff) has required the PD to clarify the “rationale of adopting ‘single-stage one-envelop’ competitive bidding procedure mentioned in para-2 of subject NIT instead of other bidding procedures available in law while the project involves huge funds and procurements”.

A vital component of K-IV

The KB Feeder lining project is part of the Greater Karachi Bulk Water Supply Scheme, commonly known as K-IV, which is projected to ensure a dependable and sustainable supply of 650 million gallons per day (MGD) water to Karachi from Keenjhar Lake. It has two phases and currently the first phase is being executed by Wapda. It is supposed to complete the Phase-I by October this year to ensure supply of 260 MGD to Karachi.

NAB finds project director’s actions ‘confusing’, raises several questions

Lining of the 38-mile-long KB Feeder, stretched through Jamshoro and Thatta districts, was approved by the Executive Committee of the National Economic Council (Ecnec) at an estimated cost of Rs40 billion on a 50:50 basis by federal and Sindh governments.

NAB identifies confusing points

NAB has also asked the PD to clarify whether it is ‘National Competitive Bidding (NCB)’ or ‘International Competitive Bidding (ICB)’, pointing out that mentioning both (NCB and ICB) is creating confusion as there are different taxation methods that apply on each of the two mentioned competitive biddings. The PD has been told to provide to NAB certified copies of newspapers, clearly mentioning their names and dates on which the NIT was published.

Usually, in response to NIT(s), interested parties or contractors submit their technical and financial details, profiles etc in the department concerned while offering their bids for a major project. Technical and financial bids are evaluated by a procurement committee comprising senior officers of the department concerned.

Project director’s rejoinder

PD Mukhtiar Abro says he has already sent a rejoinder to NAB. Speaking to Dawn over phone on Wednesday (March 20), he said NAB was informed about levy of taxes in the project and that there was no issue in International Competitive Bidding. “As far as e-procurement under the Sindh Public Procurement Regulatory Authority Rules (SPPRA) post-Feb 29 was concerned, he argued that ICB was announced before Feb 25 and, “therefore, e-tendering condition doesn’t apply in this case”.

Mr Abro maintained that the March 20 bidding was put off due to a lack of quorum at the five-member procurement committee meeting. He also insisted that the “bidding is in line with SPPRA rules and we can adopt any procedure for bidding”.

Regulatory authority’s move

In its January 31 letter, the SPPRA Board informed Sindh government that the board’s January 30 meeting unanimously decided to strictly enforce e-procurement system in all procuring agencies of the provincial government by Feb 29. Besides, the board has instructed cessation of publication and uploading of new procurement advertisements by this date.

According to one officer, the ‘single-stage one-envelop’ procedure means that opening of both -- technical and financial -- sets of documents submitted by a bidder are to be assessed by the procurement committee the same day and a decision to award the contract is taken. However, if it is ‘single-stage two-envelops’ procedure, then it means opening of bidder’s technical documents first and opening of its financial documents a couple of days later.

“Technical profile of parties is essentially assessed first as this helps determine capacity of the party/firm interested in executing the project. In case a party is found not technically qualified, its financial documents are not opened,” said the officer.

Another officer explains that it is usually seen that lowest bidders after having failed to technically qualify, go for litigation, which could ultimately jeopardise the project.

A superintending engineer from lower Sindh terms the NIT for KB Feeder lining project ‘defective’ as far as the ‘single-stage one-envelop’ procedure is concerned. According to him, in the present NIT procedure, technical and financial evaluation cannot be done the same day for a major project involving such a huge sum i.e. Rs40bn.

Action against former project director

Earlier, in December 2023, the Sindh irrigation department had cancelled the tendering process of a Rs28bn part of the same project after finding ‘irregularities’ on the part of then Kotri Barrage chief engineer Haji Khan Jamali, who retired a few days later (December 27). Mr Jamali was serving as the project director of the ‘Water Requirement for K-IV Project Improvement of Kalri Baghar Feeder’ as well.

Irrigation secretary Niaz Abbasi had recommended disciplinary action against him. Eventually, then chief secretary Dr Fakhre Alam had issued a show-cause notice to Mr Jamali on Dec 26 in the light of the irrigation secretary’s recommendation.

Published in Dawn, March 22nd, 2024