The Karachi Port Trust (KPT) is facing criticism for recommending a vital dredging contract to a non-compliant Chinese company, despite strong opposition from its technical committee, according to a report. The move raises transparency concerns over public procurement processes and threatens critical infrastructure deadlines.
The contract includes maintenance dredging of 4 million cubic meters of the Karachi Port’s navigation channel, which is necessary to ensure safe ship operations before the monsoon season. Bids were submitted by four international companies, three of which provided high-capacity dredgers exceeding 15,000 cubic metres, meeting project timelines and soil requirements.
The technical committee rejected the Chinese bid, citing weak dredging equipment and performance concerns. A qualified Dutch company proposed a dredger with a capacity of more than 20,000 cubic metres, in accordance with engineering standards and project needs.
The committee’s report highlighted that KPT’s internal dredgers, which are similar in capacity to the Chinese bidder, had previously failed under similar circumstances. Despite these findings, KPT management reportedly overturned the technical committee’s decision, disqualifying the Chinese bidder in violation of procurement rules.
Insiders revealed delays in publishing the evaluation report, ostensibly to allow the Chinese company to review its offer. The Public Procurement Regulatory Authority (PPRA) has cited this as a violation of Rule 35, stressing transparency and urging KPT to justify its decision.
The decision raised operational and legal risks, with fears that the project could fail to meet crucial deadlines, jeopardizing navigation safety during the monsoon. Some KPT board members recommended negotiating with qualified bidders to ensure a beneficial outcome, but their suggestions were rejected.
KPT Secretary Akramullah defended the move, stressing that China Harbor Engineering Company Ltd and Al-Fajr International were the lowest bidders, committed to completing the project within 120 days. However, concerns remain about the project’s feasibility and adherence to technical standards.
This controversy is emerging amid increased activity at the port of Karachi, which handles 76% of Pakistani exports. Delay or failure in a dredging project could disrupt port operations, potentially resulting in economic and logistical setbacks.
This development raises broader questions about transparency in public procurement and Pakistan’s ability to attract competitive and credible investment for critical infrastructure projects.