Controversy Surrounds Gabral-Kalam Hydropower Project Bid


PESHAWAR: The Khyber Pakhtunkhwa (KP) government has initiated an investigation into alleged manipulation and fraud in the bidding process for the Rs40 billion Gabral Kalam 88MW hydropower project, following complaints received regarding the awarding of the contract.

A letter from the KP Energy Department has instructed the Pakhtunkhwa Energy Development Organisation (PEDO) to conduct a thorough investigation, ensuring transparency and adherence to established procedures within a specified timeframe.

The project was slated to be awarded to the M/s Gabral Kalam Hydro-Power (GKHP) Consortium, comprising Guangdong Yuantian Engineering Co. Ltd. of China and RMS (PVT) Limited of Pakistan. However, concerns have been raised regarding the consortium’s eligibility, bid pricing, and allegations of submitting a fake bank guarantee for a project in Sindh.

The complainant has questioned the consortium’s experience and the unusually low bid, particularly in light of rising material costs for hydropower projects. Suspicions were raised when discrepancies were noted in the translation of bid figures from Chinese to English.

Moreover, allegations of fraudulent activities involving both companies in the consortium have surfaced, with RMS (PVT) Limited previously found guilty by the Public Accounts Committee and the Sindh High Court.

In response, a spokesman for RMS (PVT) Limited refuted the allegations, labeling them as baseless attempts to discredit the bidding process. He defended the consortium’s bid as responsible and economical, contrasting it with the opponent’s significantly higher bid.

The spokesperson also dismissed the fake guarantee allegation, citing legal proceedings that purportedly cleared the company of any wrongdoing.

However, the investigation continues, with the KP government committed to ensuring transparency and fairness in the awarding of the Gabral-Kalam hydropower project contract.

Story by Arshad Aziz Malik

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