SNGPL set to award contract to “Controversial” company

Dateline Investigation Cell
ISLAMABAD: An Italian company, Galli and Cassina has complained that Sui Northern Gas Pipeline Limited (SNGPL – under Petroleum Division) is awarding a contract to a controversial and incompetent company.
The Italian company has written a letter to Federal Secretary, Ministry of Energy highlighted that the irregularities being committed in the bidding process of SNGPL to award contract for procurement of plug valves to be installed at high pressure gas pipelines to M/S. ARFLU locally representing by M/s I.A. Engineering Services.
According to the company that, they have observed that the technical evaluation report no. PUR-43 (P) dated 22.08.2022 uploaded on PPRA website for subject tender and it is extremely shocking to see the controversial approval of incompetent bidder M/s. ARFLU, Spain even in existence of several technical deficiencies in their plug valves”, the letter pointed. The Galli and Cassina has however said, instead of having Spanish origin, plug valves of M/s. ARFLU are being manufactured at substandard Chinese facility. The documentary evidence in the form of pictures was presented at Grievance Redressal Meeting of SND-2192/21 (Plug Valves) but that evidence was deliberately ignored by SNGPL, the company added.
M/s. ARFLU, Spain was rejected reportedly by SNGPL’s Project department in a couple of tenders specifically in tender no. SN-4102/20 due to submission of fire safe certificates of plug valves issued by Chinese Authority which proves their China made production. The Project Department has declared that said bidder incompetent as well, due to non-compatibility of their plug valves with high pressure gas pipeline network rather these valves are only designed for small industrial level, highlighted in letter.
Furthermore, there is no evidence of deliveries by M/s ARFLU, Spain anywhere so far, therefore, the company has urged the Ministry of Energy to press SNGPL to cancel the technical evaluation of ARFLU’s offer as well as cross verify their sales reference and ask them to provide the shipping documents so that their credibility can be judged but no action was taken by SNGPL so far.
SNGPL in a letter to PPRA on August 8, 2022 has informed that three companies have been successful as lowest bidders including M/S I.A Engineering and Services which represents M/S ARFLU, SA, Spain.
Arflu claims that their valves are made in Spain but they are manufacturing in China through a third party manufacturing arrangement. Arflu does not have any credible sales references from the gas sector. This is a clear violation of PPRA rules 3.2 (b) & (c), sources revealed that Arflu has provided Chinese fire test certificates with their bid which was not according to bid document. When contacted Managing Director SNGPL, Ali Ahmed Hamdani to comment on the allegations leveled but he was not responded. He was called severally on phone but he chose not to respond even he didn’t reply to messages sent on his cell phone. SNGPL concerned General Manager has also declined to comment on this controversial matter.