The Inter State Gas System (ISGS) tender for LNG services may again become a disputed tender, according to Transparency International Pakistan. ISGS is owned by SSGCL and SNGCL.
Adviser, TI-Pakistan, Syed Adil Gilani in a letter sent to Shahid Khaqan Abbasi, Minister for Petroleum & Natural Resources, on October 21 has invited his attention his letter of August 8 on the subject tender, whereon it was pointed out that the ISGS tender enquiry No ISGS/Proc/TE-FTLNG/2013 is not in accordance with Public Procurement Rule 2004 and that LNG handling/re-gasification is not allowed at any of the existing terminals at PQA under the terms of the Implementation Agreements of Fauji Oil Terminal Company (FOTCO) and Engro-Verpak Terminal Ltd (EVTL).
The ministry was notified by TI-Pakistan that PQA has no authority to allow amending the existing terms of the operative terminals, such as to add LNG cargo. For sanctity of contract as well as safety reasons, PQA has awarded license to various companies to set up LNG terminal near main port in a special area after Qutab point, which is two kilometers away. TI-Pakistan's apprehensions were confirmed by PQA when it refused to allow FOTCO and EVTL to use their terminals for LNG handling, as reported in the media.
Port Qasim Authority (PQA) has refused to grant No Objection Certificate (NOC) to Fauji Oil Terminal and Distribution Company Limited (Fotco) and Engro Vepak Terminal Limited (EVTL) to use its jetties for handling liquid natural gas (LNG) imports in its main channel, saying that it could be very dangerous and hazardous for the port, the surrounding industrial installations and population.
According to letters written by PQA to Fotco and EVTL, copies of which are available with a local daily, Fotco and EVTL had requested PQA to provide NOCs for use of their existing jetties for handling LNG imports in PQA's main channel. Although PQA had refused to issue NOCs for use of its main channel in August 2012, Fotco and EVTL are pressing the authority to allow them to use the existing channels. PQA, in its letter written on October 8, said that it could not change its stance as the LNG policy stressed to ensure that all international safety standards are met, and the widening of the channel near the FOTCO terminal will not achieve minimum recommended safe passage as per international safety standards mentioned in the LNG Policy 2011. PQA further said that it would block its expansion master plan of additional berthing and basin area.
Adil Gilani said it has been reported that only two bids had been received on October 14, from FOTCO and EVTL. In case the proposals are not on the existing terminals FOTCO Oil Terminal, and EVTL Chemical Terminal, the bids are to be evaluated in accordance with the pre-determined evaluation criteria, given in the bid documents.
In case both bids are on the existing terminals FOTCO Oil Terminal, and EVTL Chemical Terminal, the government will be again wasting time in further processing the bids. The Ministry should invite tenders on the basis of TI-Pakistan recommendations of July 26, he suggested. TI-Pakistan in order to expedite transparent tendering, in its letter to the Minister of August 3, had advised to follow the recommendations forwarded to SSGCL on July 26 to invite tenders and award it in six weeks time. As the delay in LNG import has been going on since 2005, due to one reason or other, TI-Pakistan had proposed the following immediate action by SSGCL;
--- Invite tenders from the five LNG terminal license holders, as well as from all parties/JVs that are interested, who shall provide proof of having at least one LGN terminal. 15 days tender notice is issued on Monday 29 July.
--- Evaluation criteria shall be only the tolling rate per mmbtu. There shall be only two parts of tooling rates. i) Capacity charge, variable charge.
--- The lowest offered bid will be accepted.
--- The Bids will be opened on August 13.
--- Evaluation shall be completed on 20th August 2014, and posted on SSGCL and PPRA website.
--- Contract awarded on September 5. TI-Pakistan is striving to have transparency in procedures and Rule of Law in Pakistan, which is the only way to eliminate corruption and have good governance in country, Adil Gilani said.
Adviser, TI-Pakistan, Syed Adil Gilani in a letter sent to Shahid Khaqan Abbasi, Minister for Petroleum & Natural Resources, on October 21 has invited his attention his letter of August 8 on the subject tender, whereon it was pointed out that the ISGS tender enquiry No ISGS/Proc/TE-FTLNG/2013 is not in accordance with Public Procurement Rule 2004 and that LNG handling/re-gasification is not allowed at any of the existing terminals at PQA under the terms of the Implementation Agreements of Fauji Oil Terminal Company (FOTCO) and Engro-Verpak Terminal Ltd (EVTL).
The ministry was notified by TI-Pakistan that PQA has no authority to allow amending the existing terms of the operative terminals, such as to add LNG cargo. For sanctity of contract as well as safety reasons, PQA has awarded license to various companies to set up LNG terminal near main port in a special area after Qutab point, which is two kilometers away. TI-Pakistan's apprehensions were confirmed by PQA when it refused to allow FOTCO and EVTL to use their terminals for LNG handling, as reported in the media.
Port Qasim Authority (PQA) has refused to grant No Objection Certificate (NOC) to Fauji Oil Terminal and Distribution Company Limited (Fotco) and Engro Vepak Terminal Limited (EVTL) to use its jetties for handling liquid natural gas (LNG) imports in its main channel, saying that it could be very dangerous and hazardous for the port, the surrounding industrial installations and population.
According to letters written by PQA to Fotco and EVTL, copies of which are available with a local daily, Fotco and EVTL had requested PQA to provide NOCs for use of their existing jetties for handling LNG imports in PQA's main channel. Although PQA had refused to issue NOCs for use of its main channel in August 2012, Fotco and EVTL are pressing the authority to allow them to use the existing channels. PQA, in its letter written on October 8, said that it could not change its stance as the LNG policy stressed to ensure that all international safety standards are met, and the widening of the channel near the FOTCO terminal will not achieve minimum recommended safe passage as per international safety standards mentioned in the LNG Policy 2011. PQA further said that it would block its expansion master plan of additional berthing and basin area.
Adil Gilani said it has been reported that only two bids had been received on October 14, from FOTCO and EVTL. In case the proposals are not on the existing terminals FOTCO Oil Terminal, and EVTL Chemical Terminal, the bids are to be evaluated in accordance with the pre-determined evaluation criteria, given in the bid documents.
In case both bids are on the existing terminals FOTCO Oil Terminal, and EVTL Chemical Terminal, the government will be again wasting time in further processing the bids. The Ministry should invite tenders on the basis of TI-Pakistan recommendations of July 26, he suggested. TI-Pakistan in order to expedite transparent tendering, in its letter to the Minister of August 3, had advised to follow the recommendations forwarded to SSGCL on July 26 to invite tenders and award it in six weeks time. As the delay in LNG import has been going on since 2005, due to one reason or other, TI-Pakistan had proposed the following immediate action by SSGCL;
--- Invite tenders from the five LNG terminal license holders, as well as from all parties/JVs that are interested, who shall provide proof of having at least one LGN terminal. 15 days tender notice is issued on Monday 29 July.
--- Evaluation criteria shall be only the tolling rate per mmbtu. There shall be only two parts of tooling rates. i) Capacity charge, variable charge.
--- The lowest offered bid will be accepted.
--- The Bids will be opened on August 13.
--- Evaluation shall be completed on 20th August 2014, and posted on SSGCL and PPRA website.
--- Contract awarded on September 5. TI-Pakistan is striving to have transparency in procedures and Rule of Law in Pakistan, which is the only way to eliminate corruption and have good governance in country, Adil Gilani said.
No comments:
Post a Comment