Iran will provide $500m for pipeline work

Ministry denies allegation of kickbacks in award of contract.


Our Correspondent April 04, 2013
According to the ministry, Iran has selected Tadbir Energy for construction of the pipeline, after an agreement was reached at the highest level following mutual consultation. PHOTO: AFP

ISLAMABAD: The Ministry of Petroleum and Natural Resources has said Iran will provide $500 million under a state-to-state arrangement for constructing a gas pipeline that will bring Iranian gas to Pakistan.

“No inquiry is being conducted at any level in the government into the award of the construction contract,” the ministry said categorically in a statement issued in response to some news reports.

According to the ministry, Iran has selected Tadbir Energy for construction of the pipeline, after an agreement was reached at the highest level following mutual consultation.

“To allege that $450 million has been received in kickbacks out of a total amount of $500 million is a … bogus claim,” the ministry said, adding that selected entities of the two governments were negotiating the engineering, procurement and construction contract. The contract has not yet been awarded to anyone.



The ministry stressed that the managing director of Interstate Gas Systems, Mobin Saulat, was not appointed immediately after the departure of MD Hassan Nawab. Saulat replaced another managing director who had taken charge after Nawab left.

“Two managing directors had served ISGS prior to Saulat’s appointment, which was made in accordance with the laid-down procedure, rules and regulations,” the ministry added.

Published in The Express Tribune, April 4th, 2013.

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