Procurement of 150 locomotives by Pakistan Railways (PR) is in limbo as the process has been delayed due to third party evaluation of the procurement process. Pre-bid conference for the procurement of locomotives was scheduled to be held on September 6 while tenders were planned to be opened on September 24.
However, the process has been extended for an indefinite time subject to the completion of pre-bidding evaluation process, informed sources in the Railway Ministry revealed to Business Recorder. The Executive Committee of National Economic Council (ECNEC) approved in December last year procurement of 150 locomotives at a cost of Rs 55 billion including foreign exchange component of Rs 40 billion. PR has prepared specifications for procurement of 75 locomotives of 3,000 to 3,500 HP and 75 locomotives of 2,000 to 2,500HP in complete built unit (CBU).
A six-member special committee has been constituted to review the evaluation criteria and terms and conditions in order to ensure transparency. After completion of the evaluation work, date would be announced for pre-bid conference for locomotives procurement. Sources further revealed that 18 tenders have so far been received from various locomotive-manufacturing companies, and the committee would ensure the entire procurement process is transparent and in compliance with the established Public Procurement Regulatory Authority (PPRA) rules.
According to the official documents, international advertised tender was invited where 18 bidders have shown their interest. However, single stage two envelope bidding process as per PPRA rules 36 (b) would be followed. The bidders would be required to submit bid bond amounting to $9.500 million and validity of offer would be for 150 days. Draft maintenance contract for the offered locomotives should be constituted along with technical bid.
Sources further revealed that there are pro-China and pro-America groups in Pakistan Railways in terms of the procurement of locomotives. "However the committee would rely on 'pro-Pakistan' approach as whatever is procured should be in the interest of Pakistan Railways and Pakistan as a whole", sources stated. A full-scale rehabilitation of about 150 locomotives would also commence next month. It is projected that 96 locomotives would be back on track by the end of the fiscal year to earn a revenue of Rs 12 billion.
The annual bill of salary and allowance, which was Rs 10.6 billion in 2008-09 has shot up to Rs 15 billion in 2011-12. Likewise, Railways paid Rs 5.3 billion as pension to its retired employees in 2008-09 and Rs 8 billion in 2011-12. In terms of losses, the picture is bleak and the losses have now reached the figure of Rs 33 billion against Rs 23 billion in 2008-09, officials added.