Chinese company, Harbin Electric (HE) International Co. Ltd has raised questions on tendering process of regional grid (phase-II), Gilgit Baltistan.

In a letter to concerned authorities, the company’s Chief Representative, Chen Ruiwu said that technical bids of both participants were completed in just a month, adding that it is quite strange how such a large project’s bid can be evaluated in just a month’s time.

Price difference between the two from Gilgit was about Rs 3 billion. The lowest bidder, SMS-Xiyutong JV, proposed a V structure bid where they have 60% work scope of the whole project.

Ruiwu argued that for projects of such a significant importance and value, it is strange that bid security of only Rs 80 million was required whereas both financial offers submitted by both the firms surpassed Rs 10 billion value, which is quite surprising. Bid security is at least 2% of the project value to protect the interest of the employer and government body financing the project. At these financial offer values, even Rs 200 million would have been a meagre value.

Both participating local companies have zero prior experience with the construction of grid stations and transmission lines in Pakistan or abroad, he said, adding that the foreign partners of both companies do not have valid registration with the Government of Pakistan, PEC, SECP and/or WAPDA and Discos in the relevant category of construction of grid stations and transmission lines.