Bids evaluation for KPD-TAY field completed

ISLAMABAD - The ILF, a Germany-based consultant hired by OGDCL, has completed its evaluation for bids submitted for Kunnar Pasakhi Deep - Tando Allah Yar (KPD-TAY) Integrated Development Project. The project to develop KPD-TAY field is located about 25 KM east of Hyderabad city of Sindh. The facilities will comprise dehydration plant, amine plant, LPG plant, gathering system and allied facilities/utilities etc. The facilities will be set up adjacent to OGDCLs existing Kunnar Gas Processing Plant. The gas facilities would be capable to produce 340 million cubic feet of gas daily. Once in operation, the gas shortages in country will come down. The field will also add nearly 300 tons per day LPG to Pakistans indigenous production. This project is expected to cost more than $600 million. OGDCL sources say that as per M/s ILF evaluation report, Malaysia based KNM, Korea based Hyundai-Descon Consortium and Singapore based Petrosin Consortium have been declared as technically qualified having obtained the minimum 75 per cent qualification marks. As OGDCL has adopted a controversial evaluation system under which 70 per cent marks are given for technical proposals and 30 per cent for prices submitted by the bidders, it is learnt that under this controversial scheme, the technical marks allotted to three consortiums are 55 marks for KNM, 54 marks for Hyundai-Descon Consortium and 53.3 marks for Singapore based Petrosin out of total of 70 marks. This marking system would allow about $30 million price advantage to company with higher marks against a company scoring the lowest technical marks. Effectively this means that if KNM Malaysia offer a bid of $ 630 million against say Petrosins bid of $600 million, KNM Malaysia will be declared successful bidder for the Project. A source in OGDCL told this correspondent that the financial bids of these companies are expected to open within the next 10 to 15 days and that project award would be made in third or fourth week of next month.

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