PHC stops KP govt from awarding contracts directly to NLC, FWO

PESHAWAR: The Peshawar High Court on Thursday stopped the Khyber Pakhtunkhwa government from issuing work order of major construction projects to the National Logistics Cell and Frontier Works Organization till the next order of the court.

A division bench comprising Justice Waqar Ahmad Seth and Justice Younas Thaheem issued the restraining order in a writ petition filed by the Private Contractors Association, Khyber Pakhtunkhwa, in which it had challenged the award of the contract of mega projects to the two government construction companies.

During the hearing, the petitioners’ lawyer submitted that the provincial government on February 27 awarded contract of five mega projects to National Logistics Cell (NLC). These included Flyover at Warsak Road-Ring Road intersection, Level-II flyover at GT Road at the Ring Road intersection (Pir Zakori Flyover) in Peshawar, internal road rehabilitation projects in Peshawar city, Peshawar uplift programme and flyovers at the Jawad Chowk and Katlang Chowk in Mardan through direct contracting.

The lawyer for the private contractors submitted that the provincial assembly had enacted the Khyber Pakhtunkhwa Public Procurement Regulatory Authority (KPPRA) Act, 2012 to provide for the legal and regulatory framework for public procurement and promote transparency and accountability in the bidding for the projects.

However, he submitted that the provincial government then adopted KP Public Procurement of Goods, Works and Service Rules 2014. He said the rule 3(2) of the KPPRA Rules provided that deviation from normal methods of advertisement and response may be allowed in case of emergency or disaster. He said that insertion of Rule 3(2) (c) of the KPPRA Rules to directly award contract is illegal, unfair, discriminatory and against the KPPRA Act and it should thus be declared as void.

The private contractors claimed that Rule 3(2) (C) of the KPPRA Rules was unconstitutional and they were being discriminated by the government to award direct contracts to FWO and NLC without fair process of bidding.

As interim relief, the contractors prayed the court that any direct contracting/sourcing to government organizations over private sector entities under Rule 3(2) (c) of the KPPRA Rules may be stayed and the respondents may be restrained from awarding contract and work order to FWO and NLC pursuant to the impugned meeting on February 27, 2017 till the final decision of the petition.