Inter State Gas Systems is now facing a tricky situation as it needs to find a way out to avoid controversy which could mar the whole process. PHOTO: FILE
A tender that sought bids for services related to liquefied natural gas (LNG) imports faces uncertainty as the parent company of a Chinese contractor, which has submitted a bid in association with a Pakistani company, has been blacklisted by the World Bank, sources say.
According to tender documents available with The Express Tribune, any company, its affiliate or agent debarred from contracts by the World Bank would be disqualified in the tender for LNG services contract invited by the Inter State Gas Systems (ISGS).
Engro Vopak Terminal Limited (EVTL) has submitted the offer for LNG services in partnership with China Harbour Engineering Company, a subsidiary of China Communications Construction Company, which has been blacklisted by the World Bank until January 2017.
Sources say a foreign consultant, hired by ISGS, was evaluating the technical bids sought for services for the delivery of 200 to 400 million cubic feet of imported LNG per day (mmcfd).
Earlier, the consultant had asked ISGS to include a provision in tender documents that said that a company would stand disqualified if it or its affiliate or agent is debarred by the World Bank from taking part in a tender.
“Engro has joined hands with engineering, procurement and construction (EPC) contractor China Harbour Engineering Company, a subsidiary of China Communications Construction Company, which has been blacklisted. This may lead to cancellation of its bid,” a source said.
In the tender, two parties – Pakistan Gas Port Limited and EVTL – had participated and if one of them was disqualified, then the tender could be cancelled because of lack of competition, he added.
When contacted, EVTL CEO Imran Sheikh refused to make any comments on the development. However, another official of the company said the government should be more active and any delay could lead to more controversies.
ISGS managing director was not available for comments.
However, China Harbour Engineering Company Country Head Wang told The Express Tribune that this was an allegation, saying that the World Bank had not objected to their work anywhere.
The LNG tender was not a World Bank project and the company had engaged in so many projects in Pakistan, he said.
“We qualified for a World Bank project at the Karachi Port Trust in 2010, so why can’t we participate in the LNG tender,” he asked, but admitted that an affiliated company was stopped from entering into road and bridge contracts. However, it had nothing to do with LNG terminals, he stressed.
According to sources, ISGS is now facing a tricky situation as it needs to find a way out to avoid controversy which could mar the whole process.
ISGS officials met on Tuesday to find a solution to the problem, but they could not reach any conclusion.
Earlier, ISGS had sought bids for provision of complete services for delivery of a minimum of 200 mmcfd and maximum of 400 mmcfd of LNG to Sui Southern Gas Company’s grid in the vicinity of Port Qasim. The contract will be given for up to 10 years.
Officials say ISGS held a meeting with the two bidders on October 23 to clarify certain things pertaining to the bids. This is the fourth LNG tender which the government has floated for the import of LNG.
Published in The Express Tribune, October 31st, 2013.
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Propaganda again. Please leave differences aside and get the LNG going already!