The Competition Commission of Pakistan (CCP) has appreciated the Sukkur Electric Power Company (SEPCO) for addressing competition concerns in the invitation for tenders for PC poles. CCP received complaints by engineering and contracting firms against Sukkur Electric Power Company (SEPCO) for introducing a condition in the invitation for tender that all the participants must have a prototype approval before entering the bidding phase; whereas industry practice is prototype testing was never a pre-qualifying criterion for participation in bidding and was only required once a company acquired a purchasing order on being successful in the bidding. Further it may be mentioned that the design department of National Transmission and Dispatch Company Limited also carried out prototype testing on obtaining a purchase order. The requirement thus had the effect of denying the complainants and other qualified suppliers a level-playing field thereby restricting competition. The Commission advised SEPCO that the requirement of prototype approval at the bidding stage appeared to be an impediment to competition. In response SEPCO acknowledged that adding such condition would hamper fair, transparent and healthy competition and therefore agreed to remove this condition from its upcoming tender due to open on the 19th of this month. The amendment thus made was published in country wide newspapers, in addition to having been uploaded on the PPRA website.
The Competition Commission of Pakistan (CCP) has appreciated the Sukkur Electric Power Company (SEPCO) for addressing competition concerns in the invitation for tenders for PC poles. CCP received complaints by engineering and contracting firms against Sukkur Electric Power Company (SEPCO) for introducing a condition in the invitation for tender that all the participants must have a prototype approval before entering the bidding phase; whereas industry practice is prototype testing was never a pre-qualifying criterion for participation in bidding and was only required once a company acquired a purchasing order on being successful in the bidding.
Further it may be mentioned that the design department of National Transmission and Dispatch Company Limited also carried out prototype testing on obtaining a purchase order. The requirement thus had the effect of denying the complainants and other qualified suppliers a level-playing field thereby restricting competition.
The Commission advised SEPCO that the requirement of prototype approval at the bidding stage appeared to be an impediment to competition. In response SEPCO acknowledged that adding such condition would hamper fair, transparent and healthy competition and therefore agreed to remove this condition from its upcoming tender due to open on the 19th of this month. The amendment thus made was published in country wide newspapers, in addition to having been uploaded on the PPRA website.
© CCP 2023, Competition Commission of Pakistan ©All rights reserved
