Amid pressure from the United States on Iran-Pakistan gas pipeline project, Russia offered Pakistan to provide $1.2 billion pipeline-laying contract to its energy giant Gazprom without going into bidding process.
Moscow floated the proposal during a four-day trip of Foreign Minister Hina Rabbani Khar to Russia earlier this month.
“Due to the violation of rules of public Procurement Regulatory Authority Pakistan has not shown any willingness to grant the contract without inviting bids from competing parties,” the official said.
Earlier, In September 2010 Pakistan has formally offered Gazprom to participate in gas pipeline projects.
Besides, Pakistan has also discussed the project with German company ILF.
Pakistan is bound to start first flow of gas in 2014 and will have to pay a penalty equal to the cost of 750 mmcfd of gas if it fails to receive gas by the stipulated time.
Story first published: 21st February 2012