ISLAMABAD: The civic agencies of twin cities have awarded contracts of 16 mega projects worth billions of rupees to the military-led entities - National Logistics Cell and the Frontier Works Organization - without inviting tenders that is mandatory under the Public Procurement Regulatory Authority (PPRA) rules.

According to a report submitted to Islamabad High Court (IHC), Wapda has also awarded the contract of Greater Karachi Bulk Water Supply Scheme worth Rs126bn to a joint venture of NLC, FWO, KS&EW and RailCorp.

The report was submitted by the counsel for a private firm that has challenged the award of contracts to NLC and FWO without inviting tenders and competitive process.

As per the petition, the Capital Development Authority (CDA) awarded a Rs10.2 billion contract for construction of 10th Avenue to NLC, Rs2.4bn project of expansion of Islamabad Expressway to the FWO, Rs770mn Sihala flyover contract to FWO, Rs1.5bn 7th Avenue Interchange project to FWO and NLC, Rs20bn Islamabad Metro Bus to FWO and NLC. Moreover Rs10.9bn GT Road expansion project was given to FWO, Rs6.5bn Bhara Kahu bypass project to NLC, Rs15.3bn low-cost housing project at Farash Town to FWO and Rs1.9bn Park Road expansion to NLC. Contracts for the construction of C-14, C-15 and development of I-15 sectors of the CDA were also awarded to the NLC and FWO.

The Rawalpindi Development Authority (RDA) also awarded Rs22.8bn Rawalpindi Ring Road and Rs4.99bn Kutchery Chowk remodeling projects to FWO and NLC.

Besides, the report disclosed that the National Highway Authority (NHA) awarded the Swan Bridge project to the FWO. The contract for collection of tolls on motorways was also awarded to the FWO for 10 years without any competitive process, it added.

Likewise, Special Technology Zone Authority awarded Rs222mn contract of Master Planning Infrastructure Design to Nespak. IHC Justice Miangul Hassan Aurangzeb heard the case and adjourned further hearing till Nov 2.

The petition stated that the federal government had issued a statutory regulatory order (SRO) on June 28, 2021, in alleged violation of the principle of public procurement and amended Rule 42 to allow procuring agencies to engage in direct contracting with state-owned entities.

“By virtue of the impugned notification, large scale public projects in excess of Rs40bn have been awarded to state owned entities, like NLC and FWO to the complete exclusion of the private sector and several other projects are also being awarded under its grab without conducting open competitive bidding,” the petition said.

The petition termed this a violation of Section 21 of the Public Procurement Regulatory Authority (PPRA) Ordinance.

It stated that this section exempted the tendering process in certain cases. The exemption is otherwise against Article 25 of the Constitution that ensures equality as it created distinction between the state-owned entities and private sector companies.

“The impugned notification privileges state owned entities over its competitors in the private sector and is therefore ex-facie discriminatory,” it added. The petition requested the court to set aside the relaxation given to the NLC and the FWO.

Published in Dawn, October 13th, 2023