ISLAMABAD: Water and Power Development Authority (WAPDA) Chairman General (r) Muzammil Hussain on Wednesday defended the contract of Mohmand Dam’s construction given to Adviser to PM on Commerce Abdul Razzak Dawood’s company Descon, reasoning that it was in accordance with the rules and regulations.
Dispelled the impression regarding any favouritism in awarding the contract to CGGC-Descon during a press conference in Islamabad, Hussain said, “The bidding process started before the current government came into power. Hence handing out a contract to Descon in building the dam is not a conflict of interest,” adding that the bidding was in compliance with the Public Procurement and Regulatory Authority (PPRA) rules.
“Some speculative comments about the contract are baseless since the entire process has been undertaken with utmost transparency and without any favour or fear. WAPDA takes pride in its best practices and has the confidence of international donors for any commercial financing.
“International bidding for eligible firms or joint ventures (JVs) was invited for procurement in accordance with PPRA and PEC provisions for the project. About 23 firms purchased the bids while two JVs submitted their bids,” he added.
Two joint ventures came forward for biding of Mohmand Dam which included Descon and Gheezonba (CGGC) while the other was FWO and Power China Company.
“FWO and Power China Company did not have the experience and qualification required to win the bidding,” the chairman said adding that “the winning Gheezonba has 70 per cent shares and Descon has 30 per cent shares”.
“Due to Prime Minister Imran Khan’s busy schedule the project could not be inaugurated on January 2, however, it will be inaugurated in two weeks and within 10 weeks, the contractors will reach the dam site with the machinery,” he said.
“The rates for obtaining land for Mohmand Agency have been fixed,” Hussain said, adding that “the construction of the dam will provide employment to around 6,000 people while 18,000 acres of land will be made fertile”.
The secretary said WAPDA, by using its own capability, would kick off the work in the second week of January, including Geotech boring, establishment of seismic station as well as weather station and preparation of campsite for optimum utilisation of low flow period from January to May. This would substantially save both time and cost, he added.
He said the construction work would provide job opportunity to 6,000 local people, and provide clean drinking water to whole Peshawar city. He said as per agreement 40 per cent workforce would be haired from Pakistan.
The secretary said Pakistani workforce experience with international workers would be beneficial as China had also followed the same formula in the construction of dams.
To a question, he said the work on the dam would be completed in five years and eight months with an estimated cost of Rs309 billion. The dam would have the capacity to store about 1.2 million acre feet water and generate 800 MW electricity, he added.
He said the dam would be helpful in irrigating thousands of acres of land in Khyber Pakhtunkhwa, adding that the initial land acquisition in area had been completed with the cooperation of local elders and administration.
Pakistan Muslim League-Nawaz government in 2017 initiated the project, following which, in November 2017, WAPDA issued tender documents for construction of the main dam. In response two bidders – CGGC-Descon joint venture and FWO-PC joint venture – submitted bids by June 26, 2018 – a day after general elections in the country.