PESHAWAR: Serious irregularities have been revealed in Khyber Pakhtunkhwa government’s Rs33 billion upcoming free solar project. Despite changing the solar specification, price per unit was kept at around Rs204,000. This has raised serious questions about transparency and fairness of the project. Experts claimed the new price should have been around Rs140,000 per unit.
Moreover, Khyber Pakhtunkhwa Public Procurement Regulatory Authority has declared the tendering process as mis-procurement.
Interestingly, the project was divided into 20 packages, in which 13 companies participated. However, 18 packages received single bids and there was no competition. What’s more interesting is that another company, which submitted the lowest bid, offered rates that were 7pc lower for two packages in the Hazara Division.
The major specification changes included addition of all-in-one solution, which was later included in the PC-1 with a specific code. Sources claimed all-in-one solution was manufactured by only one company, customized, and that only one supplier was available in Pakistan. All the bidders, except one, have offered the same brand and model all–in–one solution.
Concerns arose when major changes were made to the solar package and an “all-in-one” unit was included, which contained a specific code. Surprisingly, this all-in-one unit is manufactured by only one company abroad and has only a single supplier available in Pakistan.
According to sources, a meeting of Standardisation Committee has been convened tomorrow to formally legalise inclusion of all-in-one unit, in what appears to be a fresh attempt to give legal cover to the matter.
Sources told this correspondent Chief Engineer (Renewable) Khurram Shehzad Durrani was part of the technical committee but was removed after he opposed “all-in-one” solar solution and raised valid concerns about the tender bids. Even though his concerns were later proven right when the bids were opened, he was sidelined — possibly because his objections were seen as a hurdle in getting the solution approved.
Meanwhile, the letter of KPPPRA No KP-PPRA/M&E/Advice/18-79/2024-25/169 issued on May 20, 2025, stated in the solar project case, no formal approval of PC-1 from PDWP has been obtained, nor has any anticipatory approval been granted. However, the procuring entity proceeded with the procurement process by opening the financial bids, which is not covered under KPPRA Act, 2012, and Khyber Pakhtunkhwa Public Procurement Rules, 2014, framed thereunder. Any deviation from any provision of this Act would lead the procuring entity towards mis-procurement, as enunciated under Section 2(1)(n) of KPPRA Act, 2012 and Rule 54 of KPPRA Rules, 2014. Similarly, the Provincial Development Working Party has already deferred the solar project in its meeting held on April 21, 2025, with the following observations:
The estimated per unit cost in the proposed PC-1 seems to be on the higher side as compared to prevailing market rates, and the department may re-evaluate estimated cost in the proposed PC-1. The eligibility criteria for the bidders framed in the proposed PQLD resulted in only 11 contractors qualifying for participation in the bidding process before approval of PC-1 by PDWP.
The solar specifications notified by C&W Department have not been given any weightage. The technical specifications must not be tailored to favour any particular vendor, manufacturer or party. The department may justify how the procurement process can be initiated before approval of PC-1, which includes detailed cost estimates and specifications. The limited participation in the bidding process raised serious concerns about fairness and transparency.
However, PEDO stated it has initiated the process strictly in accordance with Clause 22(3B), as it is explicitly mentioned a procuring entity (in this case, PEDO) may proceed with the procurement proceedings, except for the award of contract, within its competence. There has been no irregularity or wrongdoing in this process; everything has been done in accordance with the law. No contract has been awarded so far. Important decisions will be made in today’s meeting.
The spokesperson said the procurement process was conducted in light of Chief Minister’s directives to provide facilities to general public due to intense weather conditions. Under the bidding documents issued to the contractors, any cancellation of the process must be intimated two days before the bid opening, whereas the decision of PDWP was issued one day before submission. Furthermore, provincial government, during the progress review meeting on April 16, gave a clear timeline for approval of PC-1 supply within three months. The all-in-one solution was approved by technical committee of the project and further approved by CEO of PEDO. It is pertinent to mention the CM conducted the groundbreaking of the project on August 14, 2024, wherein the all-in-one solution, manufactured by GET Technology Lahore, was purchased and utilised for the purpose. He said all-in-one solution was included from the beginning, as it was mentioned in the NIT for pre-qualification of the contractors. Moreover, the PC-1 estimates are framed under MRS-2024, wherein there is no all-in-one solution in the MRS. However, under Section 27 of KPPRA Act, 2012, “Best Practices & Industry Standards”, the procuring entity is allowed at all times to use industry standards defined and codified by internationally recognised trade associations and professional bodies. A market assessment was also conducted in this regard.
The charge of Chief Engineer (Renewable/Private Power) was previously assigned to Director (Renewable & Private Power) Khurram Shehzad Durrani, on an OPS basis. He was transferred to World Bank PMO on a need basis in the same position and with other assignments. Furthermore, the officer was a member of the technical committee, and he never opposed all-in-one solution as advertised during pre-qualification, nor did he object to it at later stages.
Furthermore, the bidders were given the liberty to quote either all-in-one solution or a modular one under Section 27 of KPPRA Act, 2012.
