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Major scam in Lakwa Replacement Power Project

By Staff Reporter

GUWAHATI, May 29 � A major scam in the Rs 300-crore Asian Development Bank (ADB) financed 70-MW gas-based Lakwa Replacement Power Project (LRPP) of the Assam Power Generation Corporation Ltd (APGCL) has been alleged. The Asom Yuba Parishad (AYP) has alleged that some APGCL functionaries and the bidders� consortium of the Wartsila Corporation, Finland and the Wartsila India Ltd have joined hands to restrict entry of more bidders in the tendering process of this power project.

Referring to a newspaper report published in the China Economic Herald, the Yuba Parishad alleged that Wartsila Corporation, Finland was caught selling second-hand engines to its buyer Xixiakou Shipyard Co. Ltd, China. Following this, the Xixiakou Shipyard Co. filed a legal suit against the Finnish company for defraud.

In the case of the LRPP, the APGCL initiated an international competitive bidding (ICB) for procurement of one 70-MW power plant through the procedures specified in the ADB Procurement Guidelines, by publishing an invitation for bids (IFB), on January 23, 2014. The Chief General Manager (Generation), APGCL issued the IFB. The date of opening of the bids, which was initially fixed as March 21, 2014, was subsequently extended till May 16, 2014.

But, after the receipt of bidders queries for tender information in the pre-bid meeting held on February 27, 2014, it suddenly appeared that some of the APGCL functionaries connected with managing the affairs of the LRPP, were following a pre-decided pattern of promoting only the Wartsila by providing them with the complete tender information.

The prima facie evidence of collusion between some of the APGCL functionaries and Wartsila is the official e-mail with an attachment containing the complete tender information/ clarifications that was sent from the CGM (Generation) to all prospective bidders on June 25, 2014, that is � one month after the bid closing date.

Following this, the hullabaloo raised by the prospective bidders compelled the APGCL to go for a second IFB for the purpose on November 18, 2014. The gas engine manufacturers were also invited to attend a meeting on November 26, 2014, in the office of the Chief General Manger (G), APGCL.

At the meeting, all participants � APGCL representatives, the ADB consultant (performing the role of international procurement advisor) and 17 prospective bidders, discussed the above issues in detail and came to a common agreement on the Qualification Requirement (QR) for bidders. But the APGCL arbitrarily changed the QR.

Thus again, creating a lot of confusion among the other prospective bidders, they facilitated the Wartsila bid, alleged the Yuba Parishad and called for urgent steps from the ADB and the State Government to undo this corruption and deliver justice to the prospective bidders who are harmed by a section of the APDCL officials.

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Major scam in Lakwa Replacement Power Project

GUWAHATI, May 29 � A major scam in the Rs 300-crore Asian Development Bank (ADB) financed 70-MW gas-based Lakwa Replacement Power Project (LRPP) of the Assam Power Generation Corporation Ltd (APGCL) has been alleged. The Asom Yuba Parishad (AYP) has alleged that some APGCL functionaries and the bidders� consortium of the Wartsila Corporation, Finland and the Wartsila India Ltd have joined hands to restrict entry of more bidders in the tendering process of this power project.

Referring to a newspaper report published in the China Economic Herald, the Yuba Parishad alleged that Wartsila Corporation, Finland was caught selling second-hand engines to its buyer Xixiakou Shipyard Co. Ltd, China. Following this, the Xixiakou Shipyard Co. filed a legal suit against the Finnish company for defraud.

In the case of the LRPP, the APGCL initiated an international competitive bidding (ICB) for procurement of one 70-MW power plant through the procedures specified in the ADB Procurement Guidelines, by publishing an invitation for bids (IFB), on January 23, 2014. The Chief General Manager (Generation), APGCL issued the IFB. The date of opening of the bids, which was initially fixed as March 21, 2014, was subsequently extended till May 16, 2014.

But, after the receipt of bidders queries for tender information in the pre-bid meeting held on February 27, 2014, it suddenly appeared that some of the APGCL functionaries connected with managing the affairs of the LRPP, were following a pre-decided pattern of promoting only the Wartsila by providing them with the complete tender information.

The prima facie evidence of collusion between some of the APGCL functionaries and Wartsila is the official e-mail with an attachment containing the complete tender information/ clarifications that was sent from the CGM (Generation) to all prospective bidders on June 25, 2014, that is � one month after the bid closing date.

Following this, the hullabaloo raised by the prospective bidders compelled the APGCL to go for a second IFB for the purpose on November 18, 2014. The gas engine manufacturers were also invited to attend a meeting on November 26, 2014, in the office of the Chief General Manger (G), APGCL.

At the meeting, all participants � APGCL representatives, the ADB consultant (performing the role of international procurement advisor) and 17 prospective bidders, discussed the above issues in detail and came to a common agreement on the Qualification Requirement (QR) for bidders. But the APGCL arbitrarily changed the QR.

Thus again, creating a lot of confusion among the other prospective bidders, they facilitated the Wartsila bid, alleged the Yuba Parishad and called for urgent steps from the ADB and the State Government to undo this corruption and deliver justice to the prospective bidders who are harmed by a section of the APDCL officials.