Posted on January 24, 2025
Prime Minister Shahbaz Sharif has initiated an investigation into alleged procurement violations concerning the maintenance dredging contract awarded by the Karachi Port Trust (KPT).
Following the PM’s directive, the cabinet division has established a four-member committee tasked with this inquiry.
The committee includes the Chairman of the PM’s Inspection Commission, the Secretary of the Cabinet Division, the Managing Director of the Public Procurement Regulatory Authority (PPRA), and a representative from the Intelligence Bureau Division.
The committee’s Terms of Reference (ToRs) will focus on examining any deviations, omissions, or violations in both the technical and financial evaluation of the tendering process.
It will also review the justifications for qualifying or disqualifying bidders, identify individuals or departments responsible for procedural lapses or misconduct, and provide actionable recommendations to rectify any issues and safeguard public interest.
The KPT had invited bids for approximately 4 million cubic meters of maintenance dredging to ensure safe navigation for container and other vessels ahead of the monsoon season, with a completion timeline of 120 days.
Bids were submitted by four international companies, but only one met the necessary capacity requirements, while the others proposed equipment that was either too large or non-compliant.
The KPT bid evaluation committee rejected several bids, including that of a Chinese firm, due to performance concerns and noncompliance. They recommended a Dutch dredging company with proven expertise and suitable equipment for the project.
The KPT team emphasized the necessity for large-sized dredgers to handle the specific soil conditions, noting that only 20-25% of a dredger’s capacity is utilized for material removal according to engineering standards.
The qualified bidder proposed a dredger with a capacity exceeding 20,000 cubic meters, which was deemed adequate for the project.
Previously, the PPRA had raised concerns over the evaluation process, highlighting a lack of transparency and the need for the technical report to be published to prevent mis-procurement.
In its response, KPT stated that the technical report was pending final review by the GMs committee but later released the report in December 2024, indicating that the Chinese firm was the lowest bidder.
Sources have warned that awarding the contract to a non-compliant bidder could have severe repercussions, jeopardizing the project’s critical deadlines and endangering vessel navigation during the upcoming monsoon season.
