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Insight article

January 1, 2016

Pakistan waives off bidding condition for CPEC projects

Islamabad

The government on Tuesday permanently waived off the condition of international competitive bidding in Chinese deals and approved to award the construction contract of Eastbay expressway to link Gwadar port with coastal highway to one of three Chinese bidders.

Headed by Finance Minister Ishaq Dar, the ECC made certain decisions that carry far-reaching implications for execution of the China Pakistan Economic Corridor (CPEC) in addition to setting the base for future RLNG-based projects. The ECC, once for all, settled the issue of international competitive bidding in execution of the CPEC projects. It approved a report of a sub-committee, which establishes the federation’s authority to override Public Procurement Regulatory Authority (PPRA) Ordinance of 2002 in execution of strategic nature projects.

The subcommittee cited the Constitution’s Articles 90 and 99 that deal with exercising federation authority and conduct of business. The ECC allowed the Gwadar Port Authority to proceed with the procurement of one of the three listed Chinese Companies as well as preference for the use of the Chinese equipment, in accordance with the CPEC Framework Agreement, said the Finance Ministry. Since China is providing interest free loan for the project, the contracts will be awarded in government-to-government mode, waiving off the condition of international competitive bidding. However, there will still be a competition among Chinese state-owned companies and Beijing has forwarded a set of three names. The competition will be among China Communication Construction Company, China State Engineering Construction Company and CATIC Civil.

Source: The Tribune: Pakistan waives off bidding condition for CPEC projects

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