Karachi Port Trust under scrutiny for awarding dredging contract to ‘non-compliant’ Chinese firm

KPT faces criticism for bypassing technical recommendations and transparency concerns in a crucial port maintenance project

The Karachi Port Trust (KPT) is facing criticism for recommending a vital dredging contract to a non-compliant Chinese firm, despite strong opposition from its own technical committee, according to a report. The move raises transparency concerns over public procurement processes and endangers critical infrastructure deadlines.

The contract involves the maintenance dredging of 4 million cubic meters of Karachi Port’s navigation channel, essential for ensuring safe vessel operations ahead of the monsoon season. Bids were submitted by four international companies, with three offering high-capacity dredgers exceeding 15,000 cubic meters, meeting project timelines and soil requirements.

The technical committee rejected the Chinese bid, citing its underpowered dredging equipment and performance concerns. A qualified Dutch firm proposed a dredger of over 20,000 cubic meters, aligning with engineering standards and project needs. 

The committee’s report highlighted KPT’s in-house dredgers, similar in capacity to the Chinese bidder, had previously failed under similar conditions. Despite these findings, KPT management reportedly overruled the technical committee, qualifying the Chinese bidder in violation of procurement rules. 

Insiders revealed delays in publishing the evaluation report, allegedly to allow the Chinese firm to revise its offer. The Public Procurement Regulatory Authority (PPRA) flagged this as a violation of Rule 35, stressing transparency and urging KPT to justify its decision.

The decision has sparked operational and legal risks, with concerns that the project may fail to meet critical deadlines, jeopardizing navigation safety during the monsoon. Some KPT board members recommended negotiating with qualified bidders to secure an advantageous outcome, but their suggestions were reportedly dismissed.

KPT Secretary Ekram Ullah defended the move, confirming China Harbour Engineering Company Ltd and Al Fajr International as the lowest bidders, committing to project completion within 120 days. However, concerns persist over the project’s viability and adherence to technical standards.

This controversy surfaces amid heightened activity at Karachi Port, which handles 76% of Pakistan’s exports. Delays or failures in the dredging project could disrupt port operations, risking economic and logistical setbacks.

The development raises broader questions about transparency in public procurement and Pakistan’s ability to attract credible, competitive investments for critical infrastructure projects.

Monitoring Desk
Monitoring Desk
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