Pakistan Railways has rejected the sole bid for the lease of Royal Palm Golf & Country Club, turning down an offer from a joint venture (JV) of local and foreign investors that promised a significant financial boost to the loss-making state entity.
The JV, comprising Pakistan Services Ltd (Hashoo Group), Platinum Construction Ltd, Warm Waters Advisory, and Portugal’s Golfscape LDA, had proposed a 25% higher upfront premium and annual rental than the reserve price, along with a $15 million foreign investment. The bid, which included variable fees and plans for a hotel, was found technically and financially sound by railway-appointed evaluation committees.
However, the railway authorities rejected the bid under procurement rules without citing specific reasons, raising concerns over transparency. It is noteworthy that the procurement law requires a solid justification for any cancellation. The JV has since sought redress from the Public Procurement Regulatory Authority (PPRA).
The official response from the railway directorate was as follows: “bid was unanimously rejected by the management committee on the grounds of being non-competitive and less beneficial to the railway”.
The rejection was in spite of the fact that senior railway officials who had evaluated the bid as members of different technical and financial evaluation committees had unanimously recommended approval of the financial bid of the JV because they had found the offered bid “much higher than the fixed/variable benchmarks” and a “reasonable and competitive offer”. They also said it “gives positive indication towards the successful completion of the project over the lease period.”
On Jan 22, the JV wrote to the managing director of PPRA, seeking advice on how and where to proceed further in accordance with the procurement laws. “Specifically, we seek advice on the appropriate course of action for filing the grievance Representation regarding the rejection,” the bidder asked. The PPRA is yet to respond.
Sources suggest internal resistance to private-sector management of the club may have influenced the decision.
