ISLAMABAD, May 22: The Capital Development Authority’s (CDA) plan to install 65,000 light-emitting diodes (LED) at an estimated cost of Rs6.8 billion was challenged in the Islamabad High Court (IHC) on Tuesday.

Advocates Mohammad Naseem Khan and Syed Shajjar Abbas in their petition contended before the court that the multi-billion project had been awarded to a favourite firm by the prime minister and his task force constituted to oversee the CDA’s affairs.

According to the petition, on February 2, 2010, the CDA invited proposals from local and international firms for joint venture to replace currently installed street lights with cost-effective LED technology or other energy efficient solutions in order to reduce the high energy cost.

It said that six firms made their presentation to the CDA on LED project and the authority short listed 3 of them including Oslo, Siteco, and Infracon.

The petition said that the Asian Development Bank (ADB) offered to fund the project to the extent of $70 million on the condition that their financial support would be subject to satisfaction in respect of the “policy, financial, technical, contractual and legal aspects of the transaction.”

The CDA then approached the Public Procurement Regulatory Authority (PPRA) and told them that the firm, Oslo, had given “the most viable and workable financial model” and Siteco had offered the “lowest bid”.

The PPRA recommended to the CDA to accept lowest evaluated bid offered by the Siteco but the civic body opted for the Oslo, the petition said.

It claimed that the ADB too refused to finance the project as the CDA, against the laid down procedure, accepted the bid of Oslo. The authority then approached the Central Development Working Party (CDWP) Planning Commission for the approval of the proposed project, it added.

The petition said the planning commission raised a number of objections on the project including its high price, financial rate of return, transparency and advised the CDA to first launch a pilot project.

According to the petition, the procedure adopted in awarding the contract substantiated that the manner in which procurement had been carried out by the CDA lacked the standard of transparency as laid down by the Supreme Court in a number of cases.

The petition pointed out that the CDWP raised certain objections and issued a number of directions to the CDA but the authority did not follow them.

It requested the court to stop the CDA from executing the project until or unless the authority satisfies the court that the LED project was transparent and in accordance with the PPRA rules.

The IHC admitted the petition and adjourned the hearing till Wednesday.