PPRA initiates probe into award of Rs20bn contract

ISLAMABAD: The Public Procurement Regulatory Authority (PPRA) has initiated a probe into the award of a Rs20 billion E-Gate project contract by the Pakistan Airports Authority (PAA) following a complaint filed by Transparency International Pakistan (TIP).

According to a letter issued by PPRA’s Deputy Director-IV (M&E), Dr Asim J Abro, to the Deputy Director of PAA, the Authority has taken cognizance of TIP’s complaint dated April 27, 2026, which alleges violations of Rule 42(f) of the Public Procurement Rules, 2004, in the award of the contract.

PPRA stated that the complaint is under examination and has sought detailed information from PAA. The Authority has directed the Deputy Director/OIC EPADS Cell, PAA Karachi, to provide: (i) justification and supporting documents for invoking Rule 42(f), including reasons for treating the project as time-sensitive and in the public interest; (ii) status of the procurement, including whether the Letter of Award (LoA) has been issued and the contract formally awarded; (iii) complete details of the selected firm, along with documents establishing its status as a state-owned entity (SOE); (iv) the mechanism used to determine price reasonability; (v) disclosure of beneficial ownership in line with the Public Procurement Contract Award Regulations, 2022; and (vi) details and evidence of the performance guarantee.

PPRA has also sought a comprehensive report along with para-wise comments on the allegations raised.

TIP had earlier approached the Prime Minister’s Office, alleging serious violations of PPRA Rules 2004 in the award of the E-Gate project, raising concerns over possible mis-procurement and misuse of public funds.

In its complaint addressed to the Prime Minister’s Adviser Dr Tauqeer Shah and other senior officials, TIP contended that the contract was awarded without open competitive bidding and instead processed under Rule 42(f), which permits procurement through state-owned entities under specific conditions.

However, TIP alleged that the rule was misapplied, as the executing entity reportedly lacks the in-house technology, expertise, and capacity to independently deliver the E-Gate system — technology it claims is not available with any SOE.

Under Rule 42(f), procurement through SOEs is permissible only if the entity executes the project entirely through its own resources without involving private sector partners, joint ventures, or subcontractors. The complaint alleges that this condition was violated, potentially rendering the procurement non-compliant.

TIP further noted that where more than one eligible SOE exists, PPRA rules require limited competition among them through transparent procedures, along with proper price reasonability checks—requirements it claims were not fulfilled.—MUSHTAQ GHUMMAN