ISLAMABAD: Transparency International Pakistan (TIP) has flagged “serious irregularities” in the $153 million procurement of the 215MW Madyan Hydropower Project in Khyber Pakhtunkhwa, calling on the World Bank to investigate and, if necessary, scrap and restart the bidding process.
In a letter to World Bank Country Director Ms. Bolormaa Amgaabazar, TIP cited a formal complaint alleging violations in the prequalification and evaluation process conducted by the Khyber Pakhtunkhwa Energy Development Organization (PEDO) under the World Bank-funded KHRE Project.
The watchdog claimed that a joint venture was prequalified despite one partner—a state-owned firm holding a 90% stake—misrepresenting itself as a private entity, in violation of World Bank rules. TIP also pointed to financial concerns, noting the company posted negative cash flows for four years, low revenues of $16.6 million in 2023, yet declared unusually high profits of $57.2 million.
Further doubts arose from the submission of a conditional $15 million support letter from a brokerage firm instead of a recognised bank. TIP also argued that the JV’s liability structure breached rules requiring joint and several liability.
The watchdog has urged the World Bank, the KP government, and oversight bodies including the Prime Minister’s Office, Peshawar High Court, and the Bank’s Integrity Unit to examine the allegations.
“If verified, the World Bank must act under its anti-corruption policies and reinitiate the process,” TIP stressed, adding that only strict enforcement of procurement rules can prevent malpractice in mega projects.
Story by Ansar Abbasi
