PORT QASIM AUTHORITY
(PROJECTS & CIVIL WORKS DIVISION)
CIVIL MAINTENANCE DEPARTMENT
TENDER EVALUATION REPORT
SUBJECT: REHABILITATION AND REFURBISHMENT OF IRON ORE AND
COAL BERTH AT PORT QASIM
BACKGROUND
1.
IOCB and related facilities were constructed in July 1979 by the French
Contractor SGE under the supervision of the Consultants M/s.
SOFREMER (France)/NESPAK at the cost of Rs. 424.00 million i.e. in
local currency Rs.127.2 million and in foreign currency FF Rs. 296.8 (FF)
at the rate of 1 Francs equivalent to Rs. 1.94 in 1979, for the exclusive
use of Pak Steel. Since then the berth is functional till today which is for
about twenty five years by now, whereas the effective life of a marine
structure varies between
30 to 50 years depending on the quality of
construction and the implementation of a properly devised Repair and
Maintenance (R&M) procedure. In case of IOCB, due to paucity of funds it
was not possible to strictly implement R&M procedure as suggested by
KAMPSAX. It shall, therefore, be understood that the implementation of
any refurbishment scheme at this stage
will at best utilize the
marginalised remaining life of the structure. Furthermore implementation
and refurbishment scheme at this stage will not be able to address
problems in their entirety, rather it will only address the relatively more
critical problems.
As the entire berth is already aged and exist in a
distressed condition, the cracks in primary/secondary structural elements
will continue to appear and shall be treated immediately without allowing
the condition to further deteriorate.
2.
Defects occurred in 1989, which were rectified at the cost of Rs.12.48
million, Rs. 3.744 million in local currency and Rs. 8.736.00 in FE (DM) at
the rate of 1 DM= Rs.4.312,576.00 in 1989, through a German Contractor,
M/s. BilFinger Berger.
3.
The state of berth is being monitored regularly. Regular inspection
revealed that almost all the spanning runways beams facing the sea side
are damaged on large scale and spalling have appeared on these beams.
Also the steel reinforcement of the main runway beams are exposed
posing serious threat to the entire structure. Most of the front two rows of
runway spanning beams are in need of replacement on an urgent basis.
Concrete slabs also show signs of ageing and require extensive
repair/refurbishment. Several other works at the IOCB are also to be
attended for renovation/repair.
4.
Keeping in view the specialized nature of the work M/s. Umar Munshi
Associates were appointed on 9.8.2001 as the Consultant of the work
after approval from Board during its meeting held on 16.4.2000. The
Board approved the task that Consultants be asked to investigate, design,
prepare Tender Documents, Cost Estimates and shall also give
findings/recommendations for rectification of defects.
5.
Accordingly Work Order was issued to investigate, design and prepare
tender documents within three months time.
The consultants had
requested for extension up to 15th April 2002 on various grounds. The
Consultants submitted its preliminary report on 28th January 2002
indicating that structural members carrying out loads such as spanning
running beams facing sea side or south side are found severally damaged
by spalling and corrosion and final proposal was submitted in the end of
December 2002. Prequalification notice was published on 31.1.2003. A
total of eighteen (18) firms applied for enlistment.
The case was submitted to the Board, the Board in its 49 th meeting held
on 24th April 2003, resolved that the tender and contract documents
alongwith Engineer’s Estimates be examined by PQA and approval for
short listing and inviting tenders from prequalified contractors was
accorded and thereupon awarding the work to the responsive and lowest
bidder.
AWARD OF CONTRACT
1.
The pre-qualification notice was issued to the
reputable Pakistan and
International contracting firms and in 31st January 2003. Eight (8) Firms
were pre-qualified by the Consultants which were having no experience
in marine works therefore prequalification was re-advertised in September
2003
on
local as well as international basis from consortium of
international and
local contractors, only two (2) responded i.e. M/s.
Muhammad Ayub & Brothers and M/s. PERLITE & TEES COOPAN. Due
to poor response the prequalification was re-advertised in April 2004, in all
the leading newspapers internationally and locally and letters were also
sent to the leading firms who were having experience
in marine
construction. The bidders demanded extension in prequalification
extended thrice up to 2nd August 2004.
The advertisements for
prequalification of contractors published in newspapers from time to time.
2.
In response the under mentioned firms procured the tender
documents.
a.
CHINA HARBOUR ENGINEERING CO (GROUP), CHINA.
b.
STFA CONSTRUCTION COMPANY, TURKEY
JOINT VENTURE M/S. NEAZ TRADING CORPORATION.
c.
PSI (US based at UAE)
Joint Venture M/S. Pipe Link Construction (Pvt) Ltd.
d.
e.
3.
CHINA GEZHOUBA WATER & POWER GROUP CO LTD.,
CHINA – JOINT VENTURE M/S. MUHAMMAD AYUB
& BROTHERS,
PERLITE & TEES COOPAN, IRAN
JOINT VENTURE
M/S. MURTAZVI BUILDERS (PVT)
LTD.,
The under mentioned firms submitted their technical and financial
proposals.
a.
STFA CONSTRUCTION COMPANY,
b.
PIPELINK CONSTRUCTION (PVT) LIMTIED
c.
CHINA GEZHOUBA WATER & POWER GROUP CO LTD.,
All three firms submitted technical proposals which were evaluated as per
contractual provision, it was found that M/s. STFA CONSTRUCTION
COMPANY and M/s. PIPELINK CONSTRUCTION (PVT) LIMTIED were
pre-qualified
as they obtained 89 and 72 marks respectively against
required qualifying marks of 70. M/s. CHINA GEZHOBUBA was
disqualified as
they scored
42 marks only which was below in
prequalification standard. The financial bids were accordingly opened on
13.8.2004, from the following qualified contractors. The prices offered by
each bidder are as follow:
4.
a.
STFA CONSTRUCTION COMPANY,
718,662,100.00
Rs.
b.
PIPELINK CONSTRUCTION (PVT)
Rs.737,404,585.24
M/s. STFA was the lowest bidder at the cost of Rs. 718,662,100.00 and
was invited for negotiations to reduce the cost on 25 th August 2004 in the
presence of the Committee Members and the Consultants. During the
discussions it was noted that the Engineer’s Estimated cost submitted, i.e
Rs. 115.76 million, is of no match to the two proposals submitted by the
Contractors. The Consultants agreed that their estimates are outdated
and based on hiring locally hired contracts and are required to be updated
and Revised. Accordingly the Consultants M/s. Umar Munshi revised
their estimates. The Ist revision submitted by the Consultants was Rs.
437,548,716.00 which was later-on further updated to Rs. 707,437,556.00.
The two revised estimates submitted by the Consultants.
5.
The Revision of Engineer’s Estimates should have been made
much
before the opening of bids by the Consultants based on international
tendering. The
estimates prepared
after the bid opening can be
considered as controversial and may be discarded. The only way left was
to negotiate with the lowest bidder M/s. STFA and in view of this number
of meetings were held with them and negotiation was also held in the
office of the Board Member (Head of Technical Committee). They have
agreed to reduce their bid price by 2.5%. Their reduced
offer is
Rs.700,695,547.00
CONCLUSION
6.
Following is concluded:
a)
IOCB being the back bone of the national asset, that is,
Pakistan Steel.
b)
As no qualified/experience contractors are locally available to
undertake the work an international tender was invited with joint
venture of local firms as per Pakistan Engineering Council
(PEC) rules.
c)
The revised estimates given by the Consultant after the bid
opening is discarded.
d)
STFA has reduced the cost by 2.5% as a good will gesture.
RECOMMENDATONS
8.
In view of the importance of IOCB, it is recommended that approval may
please be accorded for award of contract for Rehabilitation and
Refurbishment of IOCB to the lowest bidder M/s. STFA at a total cost of
Rs. 700,695,547.50.