close
Advertisement
Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!
March 14, 2013

TIP objects to two of 29 Metro Bus projects

March 14, 2013

ISLAMABAD: Out of the 29 projects awarded by the Punjab government for the Metro Bus service, the Transparency International Pakistan (TIP) has raised objections on two projects worth Rs2.44 billion that were awarded without following the Punjab Procurement Rules (PPR) 2009.
The Punjab government had asked the international corruption watchdog to review the procurement process for the Metro Bus Project after allegations of corruption by former Punjab chief minister Pervaiz Elahi and some PPP leaders. The mega project, which was hailed as a historic achievement by the Pakistan Muslim League-Nawaz and the Punjab government, was completed in the short span of one year.
According to a letter written by the international corruption watchdog to the Punjab government, 27 contracts were awarded according to rules but two contracts were awarded to M/s NLC on single source basis.
“Two contracts were awarded to M/s NLC on single source basis, with the approval of the Punjab government. These are contracts for Construction of Bus Rapid Transit System (BRTS), Ferozpur Road, Lahore, at the cost of Rs1.6 billion, on 8.3.2012 and a second contract for the construction of an additional bridge at the cost of Rs849.691 for Lahore Ferozpur Road Corridor,” the TIP letter said.
“Prima facie, it appears that the Punjab Procurement Rules 2009 have been followed in the procurement contract of Rs29.078 to 25 contractors and 2 contracts for Metro Bus Supply & Operation and Security at annual cost of Rs1.2018 billion,” it said, adding that TIP feels that two unsolicited contracts awarded to M/s NLC shall also have been processed on the basis of competitive bidding as per the PPR 2009.
Below is the self-explanatory text of the TIP’s letter dated March 13, 2013:“Transparency International Pakistan on 28th February 2013 was requested to review and comment on the procurement process of provision of Metro Bus project, of the awarded contracts so far, under the terms of

the MoU signed for the implementation of the Integrity Pact.
In order to review the procurement process, the Lahore Development Authority on TIP’s request provided the copy of the NAB Contract Evaluation Forms for the 27 contracts awarded under this project, and details of infrastructure procurements of 25 contracts.
“The procedure followed by the Lahore Development Authority, govt of Punjab in these Procurement are summarised below.
“That:
1. For the procurement of 27 KM Metro Bus project commenced in February 2012, and tenders were invited through newspapers for 23 out of 25 contracts in 2012 and 2013.
2. 23 contracts for Rs26.630 billion were awarded on the basis of open bidding.
3. Two contracts were awarded to M/s NLC on single source basis, with the approval of Punjab government. These are contracts for construction of Bus Rapid Transit System (BRTS), Ferozpur Road, Lahore, at cost of Rs1.6 billion, on 8.3.2012, and second contract for the construction of Bus Rapid Transit System for Lahore.
4. Ferozpur Road Corridor, construction of additional bridge, at the cost of Rs849.691 million.
5. The 25 contracts for the infrastructure for the 27 KM Metro Bus Project were awarded at the cost of Rs29.078 billion.
6. Two tenders for Metro Bus Operation on the Bus Corridor, and Security, were awarded separately. The contract for procurement, operation and of 45 buses for MBS, for 3 years period, was awarded on 28th September 2012 to the Turkish Company M/s Platform AS Turkey, at Rs1.137 billion per annum, and contract for security services at Rs64.8 million per annum was awarded on 5th December 2012 to M/s Security 2000 (Pvt) Ltd.
7. Copies of the contract agreements and the NAB Contract Evaluation Forms have been forwarded to NAB by the Lahore Development Authority.
“Based on the above information given by the Lahore Development Authority, prima facie it appears that the Punjab Procurement Rules 2009 have been followed in the procurement contract of Rs29.078 to 25 contractors and 2 contracts for Metro Bus Supply & Operation and Security at annual cost of Rs1.2018 billion. However, TIP feels that the two unsolicited contracts awarded to M/s NLC, as stated above, shall also have been processed on the basis of competitive bidding as per Punjab Procurement Rules 2009.
“The LDA has also awarded Metro Bus Supply & Operation Contract to M/s Platform AS Turkey at annual cost of Rs1.137 billion for 70,000 KM per bus and contract for security services to M/s Security 2000 Pvt Ltd at Rs64.8 million per annum.
“The TI Pakistan is striving to have Rule of Law in Pakistan, which is the only way to eliminate corruption and have good governance in the country.”

Topstory minus plus

Opinion minus plus

Newspost minus plus

Editorial minus plus

National minus plus

World minus plus

Sports minus plus

Business minus plus

Karachi minus plus

Lahore minus plus

Islamabad minus plus

Peshawar minus plus