THIS is with reference to your editorial titled ‘LNG import’ (Jan 24). The editorial relied heavily on the input of one private sector party.
Briefly, the facts of the matter are outlined below:SSGC invited bids for the first round of tender for the import of 400 mmcfd RLNG on Jan 9, while for the bid opening date for the second tender for the same capacity is Feb 15.
PGPL’s bid was received 19 - 20 minutes after the bid submission time of 1600 hours, 40 minutes well before the notified bidopening time of 1700 hours, whereas the value of bid security submitted by GEI was less than the specified amount of one million dollars in equivalent Pakistan rupees.
Both the bidders lodged complaints regarding non - compliance of the other’s bid.
The third bidder, ETPL, initially accepted the bids and congratulated SSGC on the process but subsequently claimed to be the sole eligible bidder.
According to Rules 28 and 30 of PPRA Rules 2004, there is a consensus among legal experts that the bids of GEI andPGPL are liable to be rejected if strict adherence of the PPRA Rules 2004 is to be ensured.
However, keeping in view the time and effort expended in the process, experts have recommended the following two options:The deviations, being minor in nature and not materially affecting the bids, may be condoned, and subject to agreement by the bidders, all the three bids may be considered for evaluation. However, in adopting this option there is a risk of future litigation by parties other than the three listed above.
All the bids received may be rejected, under Rule 33 of PPRA Rules, 2004, as acceptance by SSGC of one bid alone will be viewed as anti - competitive. In this case, the second round (already tendered) will become the first one, followed by a new tender for a second round.
SSGC and the government, in the interest of fairness and transparency, have rightly concluded that there are deviations in at least two cases and there may also be a deviation in the third case, i.e. of ETPL. All the deviations are minor and, in reality, do not have a material effect. But without the consent of all the three bidders, the process cannot go forward.
The obvious and most transparent way to move forward is to invite fresh bids. It is important that a project of this size and nature should not be made controversial by one party or the other as the process must be as transparent as possible.
For PAKISTAN GASPORT LIMITEDLahore