3G auction: PTA not entertaining consultants requests for ‘benefits’
ISLAMABAD: Pakistan Telecommunication Authority (PTA), to secure the auction of multi-billion dollars worth next generation mobile spectrum (3G) from legal proceeding and to ensure transparency in the entire process, has so far declined to entertain the requests of consultants seeking 5 per cent exemption in performance bank guarantee and many more benefits.
Surprisingly, financial proposals of the pre qualified consultants will be opened in the presence of their representatives who choose to attend the event scheduled to be held today (Saturday) at PTA headquarters, Islamabad. So far, PTA has per-qualified following consultants after evaluation of quality (technical proposal evaluation): a) Arthur D Little Middle East FZ-LLC Booz & Company, b) Detecon International GmbH, c) Frontier Economics Limited and d) Value Partners Management Consulting Limited.
Documents available with The Nation have disclosed that the regulatory authority (PTA) has refused to satisfy the requests of consultants ostensibly seeking benefits through exemption of already mutually agreed conditions for the consultants of the auction including ‘performance bank guarantee (PBG) in prescribed format for an amount equal to 10 percent of the bid/contract price USD or equivalent Pak rupees before signing the contract for carrying out the assignment’.
A senior official at PTA said that the requests were not entertained as theses were contrary to the already agreed conditions. PTA, on 8th October, had sought the services of world reputed consultants/firms for the auction of 3G spectrum. Companies that submitted their documents/proposals for the bidding also pleaded to the authority to set performance guarantee as of international standard of 2 to 5 per cent of the consultant fee instead of PTA’s fixed 10 per cent to materialize the said much delayed bidding of next generation mobile spectrum .
Interestingly, PTA had already set it as 10 per cent of the consultant fee. And, under the PTA’s condition of 10 per cent fee of the consultant as performance bank guarantee, a consultant failed to fulfill responsibilities will face cancellation of the contract and pledging of performance bank guarantee.
The successful consultant shall submit a performance bank guarantee (PBG) in prescribed format for an amount equal to 10 percent of the bid/contract price USD or equivalent Pak rupees before signing the contract for carrying out the assignment. The PBG must be in USD, and the equivalent Pak rupees provision is only to be applicable on the date of encashment of the PBG, if it has to be encased. On satisfactory completion of auction, this PBG shall be released.
The documents also told that companies in their plea sought from the PTA to delete the clause 2.6 of the RFP which in result would permanently end the legal obstacles in the way of consultants especially after their appointment for the responsible job. But, the PTA has rejected the plea of consultants.