The Civil Aviation Authority (CAA) has now cancelled the bidding process, which it had initiated earlier, for awarding contract for supplying fuel to the aeroplanes at New Islamabad International Airport. So it is feared that commercial flights from the airport would not start in 2013 and might be delayed by more than one and a half years.

PSO, a state owned enterprise, had offered the highest rates in an open bidding held earlier during last year for jet fuel supply to the aeroplanes at New Islamabad International Airport. But the Civil Aviation Authority did not allot the contract to the oil giant (PSO), not even to any other organization that participated in said bidding process.

Sources informed that the CAA has cancelled the entire bidding process for supplying jet fuel to aeroplanes at New Islamabad International Airport. Upon this, state owned oil giant Pakistan State Oil (PSO) has decided to approach the court after cancellation of bidding process and over CAA’s negotiations with Oil Marketing Companies (OMCs). They said the CAA has summoned OMCs for talks regarding fuel supply contract, which is against the rules and regulations. The CAA is interested to give this contract to Attock Petroleum Company, which has no previous experience of supplying jet fuel, sources added.

Earlier, PSO had submitted this matter to its Board of Management in 11th October meeting where the board gave its approval to approach Supreme Court or the NAB against undue delay in the award of contract by the CAA because the authority did not bother to respect the high rates offered by PSO during the bid of fuel supply contract.

During this open bid, the PSO offered some Rs1.01/liter while Attock Petroleum Company offered only Rs0.40/litre for the fuel supply contract. It was an open bid and in accordance to the concerned rules highest bidders should have been awarded the contract on the spot, a sources said.The sources also told that almost one and half years are required to establish the fuel supply infrastructure as a result to this delay in the award of contract by the CAA, commercial flights from New Islamabad International Airport would not start in 2013.

It is feared that start of commercial flights from the airport might take one half years more against the scheduled time due to undue delay in the award of jet fuel supply contract.PSO had offered high bid on 28th March 2012 during an open bidding. Though it was an open bid and in accordance to the concerned rules highest bidders should be awarded the contract on the spot yet baboos at the CAA at their sweet will earlier stopped the process of awarding a fuel supply contract to the PSO on the behest of an oil marketing company and has now cancelled the entire process of said bidding.

Sources close to Managing Director Pakistan State Oil (PSO) Naeem Yahya Mir confirmed the information that the CAA has cancelled the tender and wrote letters to various OMCs for negotiations. State owned oil-marketing company (PSO) is unhappy over this development because the CAA has asked the OMCs to devise a mechanism for re-tendering the jet fuel supply contract. They also said the CAA interested to award the contract to Attock Petroleum Company. The PSO has now decided to not participate in any meeting of the CAA because it is the wastage of time and money as well, sources added.

When contacted, spokesman of the CAA Pervez George said he was unaware about this development as well as authority’s final decision, if taken. He however said he would confirm the info after getting updates from concerned officials. But despite repeated attempts, the updated stance of CAA on the issue was not provided by the spokesman.It merits mentioning here that daily TheNation had published a news item on the said matter with a heading, ‘PSO decides to approach SC’ on October 19, 2012.