TI says concerned over PPRA rules ‘violations’ by PAA
ISLAMABAD: Transparency International Pakistan (TI Pakistan) has raised serious concerns over alleged violations of Public Procurement Rules 2004 by the Pakistan Airports Authority (PAA) in the procurement of cooling towers for Allama Iqbal International Airport, Lahore.
According to a complaint received by TI Pakistan, the PAA, through the Office of the Divisional Engineer (E&M), AIIAP Lahore, invited bids for the “Provisioning, Installation and Replacement of Outlived Cooling Towers with Allied Works” under Tender No. P37508 dated July 7, 2026.
The complainant alleged that PAA fixed an abnormally high reference cost of Rs101.705 million per cooling tower. For five units, the total cost amounts to Rs508.525 million—over half a billion rupees—raising concerns about value for money.
It was further claimed that original equipment manufacturers, both local and international, offer similar or higher-capacity cooling towers at nearly half the quoted price. The complainant questioned whether PAA conducted proper market surveys or obtained quotations before determining such rates, especially at a time when the country faces fiscal and foreign exchange pressures.
The complaint also highlighted restrictive clauses in the bidding documents. Clause 6.1.1 requires that cooling towers must be manufactured in the United States or Western Europe, while equivalent manufacturers must have at least 30 years of experience and a production record of 500 units over the past 10 years. These conditions, it argued, effectively exclude many qualified local and foreign firms.
Additionally, the requirement for Cooling Technology Institute (CTI) certification and listing in the CTI Directory—an expensive and time-consuming process—was termed another barrier for local manufacturers and smaller foreign suppliers.
The bidding documents also require contractors to bear costs of overseas factory inspections by PAA officials, including travel, accommodation and allowances, which the complainant described as an unnecessary financial burden that could be avoided if local suppliers were considered.
The complainant maintained that Pakistani manufacturers already supply cooling towers to fertiliser plants, power plants and refineries operating under more demanding conditions than airport cooling systems, and there appears to be no technical justification for excluding them.
After reviewing the complaint, TI Pakistan stated that, prima facie, the allegations appear to be valid.
Citing Rule 4 of PPRA Rules 2004, TI Pakistan emphasised that procuring agencies are obligated to ensure transparency, efficiency and value for money. It questioned how PAA determined the high reference price and whether it reflects actual market value.
Referring to Rule 10, TI Pakistan noted that specifications must allow the widest possible competition and should not include references to country of origin unless unavoidable. It observed that limiting manufacturing origin to specific regions violates these principles and may disadvantage qualified bidders.
TI Pakistan also pointed out that imposing restrictive technical requirements contradicts PPRA rules and undermines fair competition. It urged PAA to revise the tender specifications to enable participation of qualified local manufacturers on equal terms.
The organisation further termed Clause 6.1.1 as manufacturer-specific and warned that such conditions could amount to “mis-procurement” under PPRA Rule 50, as they violate both Rule 10 (specifications) and Rule 32, which prohibits discriminatory and difficult conditions.
TI Pakistan has requested the Director General of PAA to examine the allegations and, if found correct, take corrective measures, including re-inviting the tender in compliance with PPRA Rules 2004.
The watchdog reiterated its commitment to promoting transparency, rule of law and zero tolerance for corruption in public procurement.—MUSHTAQ GHUMMAN
