PPRA Issues Notice to KPT Over Procurement Rule Violations

PPRA Issues Notice to KPT Over Procurement Rule Violations

Karachi, November 29, 2024 – The Public Procurement Regulatory Authority (PPRA) has issued a notice to the Karachi Port Trust (KPT), seeking an explanation for alleged violations of public procurement rules related to maintenance dredging works at the Karachi Harbour Approach Channel.

The notice follows a formal complaint lodged by Van Oord, an international marine agency, accusing KPT of not adhering to prescribed procedures in the evaluation of bids for the project. Specifically, the complaint highlights the non-issuance of the technical evaluation report, a key requirement under public procurement rules.

According to the PPRA, Rule 35 mandates that procuring agencies must announce bid evaluation results through a report that includes justifications for the acceptance or rejection of bids. The rule further specifies that technical evaluation results should be disclosed separately and prior to the opening of financial proposals.

The records submitted by Van Oord reveal that KPT announced the evaluation results of technical proposals only on the date of opening the financial proposals, October 14, 2024. The PPRA asserts that this appears to contravene Rule 35, as the complete technical evaluation report was neither announced nor accompanied by justifications for the decisions made regarding technical proposals.

The PPRA further noted that announcing technical evaluation results alongside financial proposal openings undermines bidders’ ability to file complaints with the Grievance Redressal Committee (GRC), violating Rule 48(3). This procedural lapse deprives aggrieved bidders of their right to seek redress before the next stage of the procurement process.

The authority also reminded KPT that any breach of the Public Procurement Rules, 2004, constitutes mis-procurement under Rule 50, which could lead to further repercussions.

In its notice, the PPRA has asked KPT to clarify why it failed to issue a complete technical evaluation report with justifications for bid decisions. Additionally, KPT must explain its non-compliance with the mandatory seven-day standstill period required under Rule 48(3) before proceeding with the financial proposals.

This action underscores PPRA’s commitment to enforcing transparency and accountability in public procurement processes.