Transparency Pakistan cites potential violations of PPRA rules in airport project
Transparency International Pakistan (TI Pakistan) has raised concerns over the Pakistan Airports Authority’s (PAA) procurement process for cooling towers at Allama Iqbal International Airport, citing potential violations of the Public Procurement Rules (PPRA) 2004.
The
concerns stem from a complaint submitted to TI Pakistan regarding Tender
No. P37508, issued on July 7, 2026, for the replacement of aging cooling
towers at Lahore’s Allama Iqbal International Airport.
According
to the complaint, the PAA has estimated the cost of each cooling tower at Rs.
101.705 million, bringing the total projected value of the five-unit
procurement to Rs. 508.525 million.
The
complainant alleged that comparable or higher-capacity cooling towers
manufactured by original equipment manufacturers (OEMs) are available at
significantly lower prices—approximately half of the estimated cost. The
complaint also questioned whether the PAA conducted a comprehensive market
survey before determining the reference price.
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In
addition to pricing concerns, the complaint challenged several eligibility
criteria outlined in the tender documents. These include requirements that
manufacturers produce cooling towers in the United States or Western
Europe, possess a minimum of 30 years of manufacturing experience, and
have produced at least 500 cooling towers over the past decade.
According
to the complainant, these conditions unnecessarily restrict competition by
excluding a number of qualified local and international manufacturers from
participating in the bidding process.
The
complaint further objected to additional requirements, including mandatory Cooling
Technology Institute (CTI) certification and provisions requiring overseas
factory inspections by PAA officials at bidders’ expense. It argued that such
conditions create additional barriers to competition.
The
complainant also maintained that several Pakistani manufacturers already supply
cooling towers to major industrial sectors, including fertilizer plants, power
generation facilities, and oil refineries, where equipment is required to
operate under demanding conditions.
Following
a preliminary review, TI Pakistan stated that the allegations appear to have
merit and referred to Rule 4 of the PPRA Rules 2004, which requires public
procurement to be conducted in a transparent, efficient, and economical manner
while ensuring value for money.
The
watchdog also questioned the rationale behind the PAA’s reference pricing and
cited Rule 10 of the PPRA Rules 2004, which requires procuring agencies to
develop specifications that promote fair competition and avoid unnecessary
restrictions, including those based on country of origin.
According
to TI Pakistan, the tender’s manufacturing-origin requirement could limit
competition and disadvantage otherwise capable suppliers.
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Furthermore,
TI Pakistan observed that Clause 6.1.1 of the tender documents
appears to be manufacturer-specific, warning that the provision could
constitute "mis-procurement" under Rule 50 of the PPRA
Rules 2004 and may also be inconsistent with Rules 10 and 32, which
prohibit discriminatory procurement practices.
In
light of these concerns, TI Pakistan has called on the Director General of the
Pakistan Airports Authority to investigate the procurement process. The
organization also recommended that appropriate corrective measures be taken,
including re-tendering the project if any violations of the PPRA Rules 2004 are
established.
Source:
Bloom Pakistan