Wrong allegations: China Harbour demands apology from Pakistan Gasport

November 22, 2013 Off By Web Desk

KARACHI: China Harbour Engineering Company (CHEC) has demanded an immediate apology from Pakistan Gasport Limited which claimed that CHEC is a blacklisted contractor by World Bank and cannot participate in the fast track LNG tender.

Pakistan Gasport Limited claimed that CHEC remains blacklisted by World Bank until 2017 which is an false allegation against our company and it has caused great damage to our reputation, wrote Wang Xiaping, Chief Representative of CHEC in a letter to Chairman Pakistan Gasport Ltd.

It is reiterated that CHEC has never been blacklisted by World Bank and it is totally incorrect that CHEC cannot participate in the LNG tender, he said. For the sake of further clarification the World Bank’s website has quoted that In pursuant to section 9.05 of the sanctions procedure, the ineligibility of China Road and Bridge Corp applies to China Communications Construction Company Limited as a successor or assign of China Road and Bridge Corp in respect of contracts under a World Bank group financed or executed projects related to ‘road and bridges’ and extends to any firm directly or indirectly controlled by China Communications Construction Company Limited in respect of such contracts.”

The letter said that “the above amply clarifies that CHEC has not been blacklisted by World Bank. In fact CHEC was pre-qualified for a World Bank funded project at Karachi Port in 2010 after issuance of the debarment of the parent company in 2009.

Furthermore, we are proud to inform you that we are partners with World Bank on different projects in other countries”. We can’t accept the defamation of our reputation hence we seek an apology for the false accusation and we also reserve the right to take the legal actions if this smearing campaign against CHEC is not stopped forthwith wrote Wang Xiaping, Chief Representative China Harbour Engineering Co Ltd.

Sources in the Ministry of Petroleum said that ETPL’s bid is fully compliant with the RFP. The China Harbour Engineering Co. Ltd. (CHEC) has never been blacklisted by the World Bank. However, one of CHEC’s sister concern companies China Road and Bridge Corporation was debarred by the World Bank for ‘road and bridge contracts’ only for the duration of January 2009 to January 2017. This information is available on World Bank’s website too.

In the LNG import project, CHEC is associated with ETPL as an EPC contractor only to participate in the fast track LNG project at Port Qasim, which is a marine terminal. This does not fall in the category of ‘road and bridge contracts’.

It is pertinent to mention here that the Section 33 of ISGS LSA (reported by the media) refers to companies that are the bidder. In this case, ETPL is the bidder; CHEC is just an EPC contractor.

The World Bank sanction is therefore not applicable in this case nor is the project financed by World Bank. This misinformation being fed to the media regarding CHEC points towards ill intentions after PGPL bid was disqualified by reputed international third party QED. Incidentally CHEC is the same EPC, which participated in the earlier two bids with PGPL as a joint venture partner. The PGPL bid was then technically compliant and there was no issue raised pertaining to CHEC being blacklisted earlier and PGPL joint venture signing agreements with SSGC.

Sources said that for this bid too, CHEC was approached by PGPL for the EPC, but this time around CHEC decided to work with ETPL on an exclusive basis for this bid, which is why PGPL was forced to go out of the way and engage with Worley Parsons – a consulting firm providing project and procurement management services but not construction.

The sources said that CHEC is one of the few EPCs who can execute the project within 11 months as required by the GOP. This is backed by their over 25 years of experience, especially at Port Qasim where CHEC have constructed four terminals SSGC LPG, FOTCO, FAP and EVTL, all of which are operational today. Moreover, FOTCO is engaged with them for the second oil jetty.