KARACHI, Oct 6: The garbage collection project of the city government awarded to a Chinese firm has again run into trouble with the CDGK reportedly “requesting” the multinational company to lower the already agreed upon price.

According to sources, the CDGK had awarded the contract to Shanghai Shengong Environmental Protection Co Ltd (SSEPCL) to collect garbage from the city and dispose it of at the landfill sites for $20 per ton. The city generates about 8,000 tons of solid waste daily.

The sources said the Chinese company had to start garbage collection a few months back, but due to one reason or another the Chinese company could not start the work, and then the news appeared in the media that the CDGK had entered into an agreement with a cement factory on the Super Highway to sell it roughly 3,000 tons of solid waste — which under an earlier agreement was the Chinese firm’s property.

So, when the Chinese firm came to know of it, its officials informed the CDGK that they would start their work on Sept 1. A launching ceremony of the project was held on Aug 31. The sources said the Chinese company was also informed by the CDGK that they could not start work as they had not completed certain formalities and had not yet properly developed facilities at the garbage transfer stations, landfill sites, etc. So when the Chinese company staff went there to begin work on Sept 1, CDGK men did not allow them to do so saying that they had no orders to allow the Chinese company to work.

The sources said that though the CDGK had said that the Chinese company had not fulfilled certain conditions or had not developed certain facilities, the actual reason behind not allowing the multinational company to start work was to persuade it to lower the agreed price of $20 per ton.

The sources said that after much effort and at least two trips from China, the company’s Shanghai-based boss Qian Yu Lin did succeed in meeting nazim Mustafa Kamal, who requested him to review the already agreed $20 per ton collection charges and reduce it. Multinational company officials, according to the sources, were surprised at the “request”, saying that how could a government agency backtrack on an international agreement when the project had already been launched.

The sources said the company insisted on following the agreement that clearly mentioned that the fee of $20 per ton was for 20 years. The CDGK bosses have reportedly pointed out that the price of the dollar, since the signing of the agreement, had skyrocketed by around 25 per cent owing to which the CDGK would face severe financial difficulties in meeting the agreed price.

Responding to Dawn’s queries, SSEPCL chief Qian Yu Lin said that it was not only surprising but also unusual that a government agency after entering into an agreement and agreeing to a fee of $20 per ton was suggesting renegotiations or lowering the price, etc.

He said that the law and order situation in the country was not ideal and at least one firing incident had occurred near their company’s residence-cum-office near the National Stadium a few days back, yet keeping in view the friendship between Pakistan and China, he was trying that the project progressed smoothly and the agreement was implemented.

However, he said that he would not go into details at this point and would just say that the negotiations were going on between the CDGK and the Chinese company.

The CDGK had given some proposals, which his company was going through and the company had also given some proposals to the CDGK and when something was agreed upon, it would be made public, Mr Qian said.

Responding to Dawn queries, District Coordination Officer Javed Haneef Khan said that renegotiations with the Chinese firm were going on, and added that the CDGK’s agreement with the firm was a very comprehensive one and under it the Chinese had to do various jobs such as developing the garbage transfer stations and landfill sites.

For that entire work they were to get $20 per ton, but as they had not completed certain development works or provided certain facilities to the CDGK, they would be paid only for the work they would do, said the DCO.