ECC relaxes rules to award 300MW project to Chinese company

ISLAMABAD: The Economic Coordination Committee of the Cabinet on Thursday allowed invoking of Clause 5 of Public Procurement Regulatory Authority (PPRA) that exempted the authorities from meeting criteria for awarding of the project of 300MW power plant at Gwadar to the China Communication Construction Company.

Finance Minister Senator Muhammad Ishaq Dar here on Thursday chaired the ECC meeting. The meeting approved the proposal put forth by the Ministry of Water and Power for authorising the PPIB to proceed for award of the project for establishment of 300MW power plant at Gwadar to the China Communication Construction Company under Rule 5 of the Public Procurement Rules 2004.

The PPRA’s Rule 5 states, “Regarding international and inter-governmental commitments of the federal government whenever these rules are in conflict with an obligation or commitment of the federal government arising out of an international treaty or an agreement with a state or states, or any international financial institution, the provisions of such international treaty or agreement shall prevail to the extent of such conflict”. 

The agreement on the Pak-China Economic Corridor Energy Project Cooperation in Nov 2014, among other provisions also provided for establishment of this coal-based project to be developed at Gwadar, Balochistan.

The Chinese side subsequently nominated China Communication Construction Company (CCCC) to invest in the project to which the Pakistan side had expressed agreement.

The ECC, it may be mentioned, had set up a committee in its last meeting under the chairmanship of minister for law to have a detailed review of the proposal put forth by the Ministry of Water and Power. The said committee put forth its report during the meeting and endorsed the recommendation of the ministry. The committee was informed that Environmental Impact Assessment will be carried out and assessed by the provincial authorities as per law in vogue.

In a separate statement issued by Finance Ministry on Thursday, Finance Minister Senator Muhammad Ishaq Dar welcomed the agreements worth $432.7 million signed with the World Bank on Thursday, saying these would support financial sector, social protection, community and SME development, livelihood and community infrastructure and services.

Economic Affairs Division Secretary Tariq Mahmood Pasha signed the loans and grants agreements on behalf of government of Pakistan while project agreements were signed by the representatives of government of Khyber Pakhtunkhwa and Fata Secretariat. Anthony Cholst, acting Country Director signed the agreements on behalf of the World Bank.

The finance minister appreciated World Bank’s support for government’s endeavours to achieve sustainable and inclusive economic development of the country. He said the government had taken a number of measures in line with its 4-Es manifesto that envisioned development of economy, energy, education and fight against extremism. He particularly mentioned series of reforms undertaken by the government to improve macroeconomic stability and putting the economy on a higher growth trajectory.

Anthony Cholst stated that the agreements would strengthen the financial sector, bring about improvement in the Income Support Programme and also contribute to economic development in different areas in the KP and Fata.