Why the Chinese President is missed so much by PML N: The $34 Billion (Commission based) investment from China that theyre parroting about isn’t actually an investment, it’s a LOAN.This LOAN carries a FEE/INTEREST RATE of 7% whereas the project loans Pakistan gets from ADB/WB etc are usually at a rate of 2-4%.To avail this LOAN, the condition is that there will be NO BIDDING for the project and the government will award contracts directly to Chinese companies (or companies that will utilize Chinese equipment and contractors).For this to happen, government is amending Procurement Rules since currently it’s not possible to award such contracts without BIDDING.Procurement Rules amendment will allow the government to SET THE PRICE ITSELF for a certain type of work and award direct contracts to any company without any bidding involved. Most of this Loan will be utilized for Coal based Power Projects for which Government has already filed a “Tariff Review Petition” in NEPRA headed by Khawaja Naeem.....
Posted on: Fri, 05 Sep 2014 12:45:15 +0000
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