According to TI(P) Wapda issued tender documents for construction of the main dam in November 2017 and in response two bidders - CGGC/Voith-Descon joint venture and FWO-PC joint venture - submitted bids by June 26, 2018.
Giving background of Gezhouba Group Company, TI (P) has claimed that the World Bank Group on May 29, 2015 had announced debarment of Gezhouba No. 1 Engineering Co. Ltd., Gezhouba No. 5 Engineering Co. Ltd and Gezhouba No.6 Engineering Co. Ltd. and their affiliates for a period of 18 months. In addition, China Gezhouba Three Gorges Engineering and its affiliates are also debarred for a period of six months.
On November 13, 2017, Nepal Cabinet scrapped a $2.5 billion deal with China Gezhouba Group Corporation to build the country''''s biggest hydropower plant, on lapses in the award process. On March 9, 2017, Wapda awarded Rs 180 billion worth of two contracts to a Chinese firm China Gezhouba Group Company (CGGC)for carrying out main civil works in the first stage of the Dasu hydropower project. But till toady, no work has started and contractor has made extraordinary claims.
TI(P) is of the view that according to PPRA Rules 2004, single bid is not allowed to be considered, unless Wapda has awarded a contract on competitive basis, similar product, in same fiscal year, to another contractor, and the single bidder''''s price is comparable to last awarded contact.
The TI (P) letter says that LNG Terminal at Port Qasim was awarded in 2014 to single bidder, EPTL at tolling charges US $ 0.6601 IMMCFD. This contract is presently under a NAB Inquiry, for alleged illegal award. The second LNG Terminal at Port Qasim was awarded in 2016 based on competitive bids, to JV of FOTCO and Gas Port at competitive price of tolling charges of $ 0.4177IMMCFD. The result of competitive bid indicates that the actual market rate is 36% less than the rates of single bidder.
The TI(P) says that the complaint has been examined by it and prima fascie the award of contract of single bid amounts to mis-procurement under Rule 50, mis-procurement and any unauthorized breach of these rules shall amount to mis-procurement.
It has been noted that Wapda has not posted on PPRA website the Evaluation Report on prescribed performa issued by PPRA according to Rule 35. TI(P) has requested Chairman Wapda to examine the complaint, in view of PPRA Rules, and also the credibility of China Gezhouba Group Company due to past irregularities in World Bank, Nepal and other contracts. In case the allegations are correct, cancel the tendering process, and re-invite the tender in compliance with PPRA Rules, and also take action against those who are found responsible for this alleged mis-procurement. The copy of letter has also been sent to Secretary to Prime Minister, Chairman PAC and Managing Director PPRA.
