Karachi 16th August 2024 : The Local Government & Housing Town Planning Department has firmly rejected allegations of procurement violations in the construction of the Malir Expressway Project (MEX/MEW). The accusations, which claim that the project’s bidding process caused an estimated PKR 27.5 billion loss to the national exchequer, were described as baseless and unfounded.
In a detailed response to a letter from Transparency International Pakistan, the Department emphasized that the procurement process adhered strictly to the Sindh Public Procurement Regulatory Authority (SPPRA) Rules 2010, including the principles of international competitive bidding. All required documentation and public disclosures were made available, with no objections raised by the SPPRA during the process.
The Department clarified that the eligibility criteria were met by all participating bidders, including the submission of necessary tax documentation. Contrary to allegations, the registration with the Securities and Exchange Commission of Pakistan (SECP) was not a mandatory requirement for all consortium members, except where applicable under the law.
Three bids were received for the project, one of which was from a consortium led by M/s J.N. & Co. This consortium was found technically compliant and was ultimately awarded the contract. A special purpose vehicle, Malir Expressway (Private) Limited, was formed by the consortium to act as the Concessionaire for the project, and a concession agreement was executed in April 2020.
The Department also addressed allegations concerning M/s JN Construction Company (Pvt.) Ltd., clarifying that this entity did not participate in the bidding process and had no involvement in the project. The anonymous complainant was criticized for lacking an understanding of the procurement process and for attempting to damage the Government’s reputation.
The Department urged Transparency International Pakistan to take action against the baseless claims and reaffirmed its commitment to transparency and accountability in the execution of the Malir Expressway Project.
