Cabinet body may reject PDB proposal

Finally, the 200-300MW Ghorasal Peaking Power Plant project will again be placed in the Cabinet Purchase Committee meeting July 11.

Officials believe that this time the cabinet body is likely to reject the state-owned Power Development Board's proposal to award the contract to a Chinese bidder.

Earlier, the cabinet body on March 2 this year approved a PDB proposal to award the project to the Chinese bidder — Consortium of China National Technical Import & Export Corporation and China National Machinery Import & Export Corporation — ignoring the power ministry's objection. But within a week, the approval was withheld.

The power ministry had raised the objection finding huge irregularities in the tender evaluation process that was done by its subordinate body PDB to favour the Chinese consortium.

The cabinet committee, while suspending the approval, asked the power ministry to place its clarifications in detail on the objection along with the proposal again.

In compliance with the directive, the power ministry sent its detailed clarifications to the Cabinet Division last week. 'Now, the proposal has been listed to be placed in the Purchase Committee meeting on Monday for consideration,' a senior official at the Power Ministry told the news agency.

He, however, said last time the Power Division's opposition to the PDB proposal was ignored by the cabinet body because of a cabinet minister's persuasion in favour of the Chinese consortium. 'The minister has business interest in the Chinese consortium as his business firm is believed to be its local agent.'

The finance minister, who presided over the cabinet committee meeting, finally felt the procedural error in the approval process and took the step to make a correction to the committee's decision.

Explaining the matter, the official said PDB was a subordinate body under the power ministry. So, the cabinet body cannot ignore the opinion of the power ministry while considering a project of the PDB. 'But when that happened, it surprised many,' he added.

Source : New Age