Dredging works: Amid complaints of ‘favouritism’, KPT says contract not awarded yet

KARACHI: Karachi Port Trust (KPT) has reported that Dutch maritime firm Van Oord earned the highest score in the technical eligibility aspect of the ongoing process of awarding the dredging contract to clean a channel leading towards the country’s deep water container port in Karachi – Hutchison Ports Pakistan (South Asia Port Terminals/SAPTL).

However, it added that the release of the (technical evaluation) report has been withheld pending finalisation by the GMs Committee after discussions with (China’s) CHEC Dredging Company.

In a reply to the Pakistan Public Procurement Regulatory Authority’s (PPRA) explanation letter issued to KPT on the complaint lodged by Van Oord, Karachi Port reported that Van Oord and CHEC were the only two maritime firms left in the ongoing process to qualify for the dredging contract.

Earlier, as many as four firms found technically fit had submitted the tender to clean the 16-meter deep Tipu Sultan Channel and South Whraf Basin within 120 days before the monsoon 2025 arrives in Pakistan.

In its reply on Friday, KPT said: “The technical eligibility for Van Oord had the highest score. Their subsequent objections on technical evaluation are baseless and not clear.”

KPT said it aligned it according to Rule 35, and announced the results of the technical evaluation “orally” to the bidders concerned who submitted their technical bids prior to opening the financial bids. Any such notifications made publicly would needlessly disclose sensitive competitive information against principles of confidentially under Rule 41.

A source, however, highlighted PPRA rules require scoring being published instead communicated orally. “Further publishing score is not against confidentiality … this is public procurement, not private money.”

The Ministry of Maritime Affairs and Karachi Port Trust’s (KPT) officials also contradicted the claim that Pakistan’s busiest seaport had awarded the dredging contract to the Chinese firm, claiming the issue of awarding the tender is yet to sail to the board.

In response to queries sent by Business Recorder, an official replied: “Dredging work has not been awarded to any firm yet. It has not even been discussed in the Board yet.”

“The Final Evaluation Report shall be uploaded on the PPRA website and this shall address the requirement of the mandatory fifteen-days standstill period under Rule 35. All observations/comments may be addressed to KPT Grievance Committee, which remains open to all stakeholders,” KPT stated in the reply.

Earlier, the Dutch company Van Oord submitted a complaint to PPRA, claiming that KPT had awarded the dredging contract to the China’s firm in violation of prevailing rules including issuing technical evaluation report 15 days before awarding the contract to any maritime firm and did not give the legitimate time to participants to file a complaint to highlight violation of concerned rules, if any.

It also claimed a concerned committee had recommended Van Oord as an eligible firm to win the contract on technical grounds. However, the port awarded the contract to the Chinese firm which was not found technically fit to complete the dredging work in the given timeframe of 120 days.

As per the record provided by the complainant to PPRA, “The Technical Evaluation Repot of Sub Committee had recommended Van Oord Marine & Contractors B.V, the Netherlands as the only firm technically qualified among the four participating firms.”

Out of total 13 local and foreign firms offered bidding proposals, only four firms were found technically qualified to submit tender to clean the channel on Karachi’s costal area of the port. They were including Dutch company Van Oord Marine & Contractor BV, China’s China Harbor Engineering Company (CHEC), Belgium’s Jan De Nul and NMDC Group/M/s. Salateen- Pakistan.