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Chinese Firm Desperate to Back Out of Allama Iqbal Airport Project

The lowest bidder M/s Sinohydro selected for the Allama Iqbal International Airport has now been trying to move out of the contract.

This was revealed before the Senate Standing Committee on Aviation which met here on Monday. Members were briefed on various issues that are currently being faced by the Aviation Sector in Pakistan.

The meeting was presided over by Senator Hidayatullah. Members of the Committee who attended were Senator Saleem Mandviwala, Senator Syed Muhammad Sabir Shah, Senator Umer Farooq, Senator Faisal Saleem Rahman, and senior officers from the Ministry of Aviation.

Matters taken up by the Committee included the bidding process of the Allama Iqbal International Airport, Remittances due to ticket sales not being allowed to remit foreign exchange, Action against those appointed in PIA on fake degrees, setting up security agencies counters in one place at different airports and Distance of the Islamabad Airport building from the parking lot.

The Committee while deliberating details of the bidding process of the Allama Iqbal International Airport was informed that the lowest bidder M/s Sinohydro was selected after an intensive bidding process on the basis of the lowest Readout Bidder. However, the bidder now has been trying to move out of the contract.

The Committee was informed that the initial requirements have also not been fulfilled that entails 10 percent Performance Security. The Committee recommended that the contractor be summoned to the next meeting so that the matter could be reviewed in detail.

Discussing the issue of remittances due to ticket sales not being allowed to remit foreign exchange the Committee was informed that foreign airlines were under no obligation to share their financial statements with Pakistan Civil Aviation Authority (PCAA) including outstanding remittances.

The Committee directed PCAA to provide any details regarding payments/remittances available with it to the Committee. It also recommended that representatives of airlines be invited to the next meeting for clarity on the subject.

Reviewing the matter related to action against those appointed in PIA on fake degrees, the Committee was informed that as per the recommendation of the Ministry of Law and Justice, the issue has been forwarded to the Ministry of Interior. Discussing the survival of PIA in the Aviation Industry, the need to revamp the business on the Air India Model was stressed.

Reviewing the matter of setting up security agencies counters in one place at different airports the Committee was informed that the direction has been followed to the dot. Members asserted that maximum measures must be taken to facilitate passengers at all airports.

Regarding the distance of the Islamabad Airport building from the parking lot the Committee was informed that the passengers could take the drop lane facility for convenience.

Source: Pro Pakistani

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