800MW Mohmand Dam Hydropower Project

Evaluation of Technical and Financial Bid

Presentation to Inquiry Committee of Ministry of Water Resources

Dated 06 January 2023

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PROJECT INTRODUCTION

 Mohmand Dam comprises a 213m high Concrete Face Rockfill DAM (CFRD), 5 th tallest CFRD
to be built.

 02 Nos. Diversion tunnels with 15 m finished dia. and 1.7 km long each.

 Gated Spillway structure with two stage stilling basins for energy dissipation.

 Spillway structure will pass a discharge of 27,427 m3/s.

 Surface Powerhouse with 800MW installed capacity.

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 WAPDA advertised open Invitation for Bids (IFB) dated 23 November 2017 with Bid
submission date of 01 February 2018.

 Bids were invited under Single-Stage Two Envelope Bidding Procedure in accordance with the
PPRA Rule 36.

 Twenty Three (23) firms including international firms purchased the bidding documents.

 Two bids were received up to closing date on 26 June 2018 (after extending 3 times).

 Following two bids were received.

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EVALUATION OF TECHNICAL BID

(1ST PART OF THE BID)

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EVALUATION OF TECHNICAL BID

 Technical Bids were opened on the same day in accordance with the prescribed procedure
given in bidding documents and the Price Bids were kept under lock and key by WAPDA.

 Both the Technical Bids were evaluated in accordance with the Instructions to Bidders and
Evaluation Criteria stipulated in the Bidding Documents by following main steps;

 Examination of Technical Bids for Completeness

 Examination of Technical Bids for Eligibility and Qualification

 Examination of Technical Bids for Technical Evaluation

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EVALUATION OF TECHNICAL BID

Step-1: Examination of Technical Bids for Completeness

No. Item Bidder-1 (CGGC- Bidder-2 (FWO-

Descon JV) PowerChina JV)

1 Letter of Technical Bid Pass Pass

2 Bid Security Pass Pass

3 Authorization Pass Pass

4 Joint Venture Agreement Pass Pass

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EVALUATION OF TECHNICAL BID

Step-2: Examination of Technical Bids for Eligibility and Qualification

* Conditional
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EXCERPT FROM EXPERIENCE CRITERIA

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 CLAUSE 4.1(a) GENERAL CONSTRUCTION EXPERIENCE

Experience under construction contracts in the role of prime contractor, JV member,

Sub-Contractor, or management contractor for at least the last 20 years, starting 1st
July 1997
(Each Member must meet the criteria)

M/s CGGC - DESCON JV M/s FWO - PowerChina JV

CGGC-DESCON provided 1. One of the JV Member PowerChina Chengdu could not submit
evidence covering 20-years authenticated documents of 20-years experience.
experience.
2. JV member provided two (2) contracts of Engineering studies
related to Feasibility Design instead of Construction Projects.
3. Inconsistency in JV name was found in Submitted documents. On
clarification, amended documents were submitted.

PowerChina Chengdu (JV Member of FWO-PowerChina) failed to prove 20-years

General Construction Experience.
 CLAUSE 4.2(a) SPECIFIC CONSTRUCTION & CONTRACT MANAGEMENT
EXPERIENCE
For Civil Works:
Participation as prime contractor or JV; one (1) contract with a value of at least PKR 100 billion
equivalent or at least two (2) contracts, each with a value of at least PKR 50 billion equivalent, that have
been successfully completed for the hydropower projects or dams with gated spillway or barrages with
gated structures, powerhouse and ancillary works in last 20 years.

(All Members Combined Must meet requirement and

Each Member must meet ten percent (10%) of the requirement)

M/s CGGC - DESCON JV M/s FWO - PowerChina JV

1. CGGC submitted authenticated 1. FWO does not fulfill the requirement of Rs. 10 Billion cited in Gomal Zam in
documents of two (2) projects of light of MOU wherein the work of FWO was
share more than Rs. 80 Billion. Rs. 450 Million for Security Arrangement.
2. DESCON submitted documents 2. FWO does not meet the minimum criteria of Rs. 10 Billion of dam/hydropower
of a Project cost more than Rs. and had maximum share of 65% as lead partner.
20 Billion. 3. Second JV member M/s PowerChina fulfill the requirement of Rs. 100 Billion
Project Cost.
4. Third JV partner M/s PowerChina Chengdu could not provide authenticated
evidence of Contract amounting to Rs. 10 Billion.

FWO and PowerChina Chengdu (80% Share) failed to meet the minimum requirement.
 CLAUSE 4.2(a) SPECIFIC CONSTRUCTION & CONTRACT MANAGEMENT
EXPERIENCE
Electrical and Mechanical Works
Implementation of E&M works as prime contractor, joint venture member, or Sub-Contractor in last
20 years on international projects outside their home countries and must have been satisfactory
commercial operation for the last five (05) years proven by the reference documentation of the
Employer / End User., a minimum experience in the following key activities successfully completed:

One Member must meet the requirement (can be met through specialized Sub-Contractor)

M/s CGGC - DESCON JV M/s FWO - PowerChina JV

1. JV fulfilled the requirement. 1. PowerChina Chengdu being the E&M JV Member
could not provide the Employer/ End User certificates
for last 05 years commercial operation of power plant.

M/s FWO-PowerChina JV did not provide sufficient documents.

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FINDINGS OF TECHNICAL EVALUATION

 The Bidder-1 (CGGC-Descon JV) meets the minimum requirements of Eligibility and
Qualification criteria specified in the Bidding Documents and qualified for the next
stage of evaluation.

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FINDINGS OF TECHNICAL EVALUATION Project

 The Bidder-2 (FWO-PowerChina JV) fails to meet the minimum requirements given hereunder:

 The JV Lead Member(FWO) failing to meet the Sub-Factor 4.2(a) of Section-III; (Specific
construction and Contract Management Experience) and being non-responsive in
demonstrating its managerial capacities, capabilities and experience to manage the whole
of the Project as Lead Firm, and its capability to execute 65% share of the Works as per
Sub-Clause IB 29.2 [Award] of the Instruction to Bidders, and thus did not qualify for the
next stage of technical evaluation.

 2) The JV member, PowerChina Chengdu failing to meet the Sub-Factor 4.1(a) and 4.2 (a)
of Section-III, Eligibility and Qualification Criteria for Each Member, as it had not
demonstrated general construction experience and specific experience within the
documentation provided with its Bid and non provision of required documents.
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RECOMMENDATIONS

 It was recommended that Bidder-2 be notified in writing under Sub-Clause 23.9 of

Section-II: Bidding Data that its Technical Bid was non-responsive to the
requirements of the Bidding Document and return its Price Bid unopened before
inviting Bidder-1 for opening of his price bid.

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EVALUATION OF PRICE BID

(2ND PART OF THE BID)

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PRICE BID OPENING

 The Price Bid was opened on December 31, 2018 in the presence of representatives
of the Bidder and other interested parties and recorded the followings (Annexure E of
Price Bid Evaluation Report):

 The name of the Bidder;

 Order in which Bids were opened;

 Is Bid sealed and intact;

 Is letter of Bid properly signed and stamped; and

 The Bid Prices, including any discounts.

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DETAILED EVALUATION OF PRICE BID

 Basic objectives of detailed evaluation of the Price Bid are:

(i) Verification of the correctness of the BoQ and Price Schedules extensions and
totals;

(ii) To review all priced summaries of the bid for any arithmetical error to ensure that
totals are correct;

(iii) To examine any other aspects which may affect the evaluated bid price;

(iv) To review the tables of Appendix-A to bid relating to base values of various price
indices;

(v) To establish the evaluated bid price; and

(vi) To trace any unbalancing in the bid. 17

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EVALUATED PRICE BID

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COMPARISON OF ENGINEER ESTIMATE & PRICE BID

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CONCLUSION OF FINANCIAL EVALUATION

 Based on the detailed evaluation and analysis carried out, the lowest evaluated bid
price of the only responsive Bidder (CGGC-Descon JV) came out to be
PKR 201,523,482,998.

 Though the lowest evaluated bid price is about 12.92 % higher than the Engineer’s
Estimate but keeping in view the stringent requirements of bidding documents,
difficult site conditions of the project area & security concerns of the international
bidders, bid price offered by CGGC-Descon JV was considered reasonable.

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RECOMMENDATION BY THE CONSULTANTS

 It was recommended by the Consultants that the contract for the Construction of Civil

Works including Design, Supply & Installation of Electrical and Mechanical Works and,

and Hydraulic Steel Structures be awarded to CCGC-Descon JV being the lowest

evaluated Bid Price of PKR 201,523,482,998 (including Daywork but excluding

Provisional Sums) in accordance with the procedure laid down in the Bidding Documents

and other codal requirements of WAPDA.

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FURTHER DISCOUNT BY THE BIDDER AFTER ISSUANCE OF FINANCIAL

EVALUATION REPORT

 Financial Evaluation report was submitted by the Consultants to WAPDA on

15 February 2019.

 The Bidder, CGGC, owing to all-weather strategic partnership between Pakistan and
China; voluntarily offered a discount of PKR 18 Billion on 18 February, 2019.

 WAPDA awarded the Contract No: ICB/MDHP-01 to M/s CGGC-Descon JV with an

evaluated Bid price of PKR 183,523,482,980 which is 2.83% above the Engineer
Estimate .

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THANKS

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DETIALED TECHNICAL EVALUATION CRITERIA

 Evaluation Criteria.pdf

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