The Karachi Port Trust (KPT) is negotiating what the sources claimed a “dubious” deal worth millions of dollars for the chartering of two hopper barges with a local construction firm that has zero experience in the ports and shipping sector.
A KPT spokesman, however, rejected the impression saying the tendering process was being carried out transparently in accordance with Clause 36(b) of PPRA, 2004 rules.
The KPT last year, on September 7, advertised tenders to invite bids for the hiring of two self-propelled split type hopper barges each of 1000 cubic meters (cbm) capacity. According to source privy to the matter, three companies, M/s Baluchistan Construction, M/s Maqbool Associates and M/s Qalandar Bux, submitted techno-financial bids.
While M/s Qalandar Bux was disqualified on technical grounds, the remaining two bidders, the sources said, gave each other a tough time by mobilizing all the resources at their disposal to influence the bidding process and get the lucrative contract.
“The two companies even have been trying to influence the (federal) minister (for ports and shipping Kamran Michael),” claimed the sources.
The sources privy to the matter said none of the two technically-qualified firms had any experience of working in the ports and shipping sector. “Both are civil construction companies having no experience of vessel operation. They routinely build roads, bridges etc,” they added.
The opening of financial bids, on January 15, proved decisive in throwing M/s Maqbool Associates out of the arena as its $ 36 million demand appeared higher than $ 32 million M/s Baluchistan Construction had come up with.
The shipping experts and KPT officials, however, are concerned that if materialized the deal between KPT and M/s Baluchistan Construction would see the former pay an “exorbitant” price for the three-year project that, they believe, is worth not more than $ 5 million.
The cost of project stands astronomical, to the experts, given the fact that the KPT would be responsible for fuel cost for the vessels’ operation.
The experts whereas estimate price of the two 2011-12-built second-hand Chinese barges at $ 2 million each, they say expenditure on other accounts like craft mobilization, customs duty, flag registration, maintenance etc would not go beyond a couple of million dollars.
“In all likelihoods this project is worth not more than $ 6 million,” viewed an expert adding “Especially when the fuel supply would too be on KPT.”
“This price if agreed upon would be 500 percent higher thus exorbitant,” said the expert.
According to sources, even some of KPT’s officials concerned had reservations over the project’s cost that the KPT spokesman claimed was under evaluation.
”The financial evaluation of bids is under progress by the Departmental Tender Committee,” the spokesman told Pakistan Today.
The deal, however, seems to have proceeded well beyond financial evaluation. As the sources said a three-member team of KPT inspectors just recently visited China to inspect the two barges anchored in Chinese waters.
While the sources are seeing the deep-rooted culture of “kickbacks” at work in the dubious deal, the KPT insists that everything is in order.
“KPT invited the tenders… under clause 36(b) of PPRA – 2004 amended for three years period,” said a spokesman of the port operator in a written statement.
The total cost incurred for hiring of these two barges could only be determined when the financial evaluation was completed, he added.
“With regards to price being exorbitant, comment can be made on completion of financial evaluation of bids and accordingly the decision will be made by KPT management for it being exorbitant or not,” the spokesman said.
The spokesman also clarified that before inviting the bids in question the KPT management had invited tenders for the “lease/purchase” of the two crafts. “The advertisement was published as per the procedure in vogue but due to no response on bids the tender was discharged,” he claimed. The sources, however, said the KPT in its previous tender for hiring-cum purchase had notified technical specifications that were almost impossible to be met.
