Paharpur may re-bid for South African deal

Friday, 11 October 2002, 19:30 IST
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JOHANNESBURG: India's Paharpur Cooling Towers might consider putting in a second bid for a lucrative South African forestry deal if the government meets some conditions. The Business Day daily here quoted Paharpur business and organisation general manager Vineet Rohatgi as saying the company's decision would depend on whether the new contracts were viewed objectively. The company earlier said it would not bid for the contract for the Komatiland forestry deal again, after the South African government refused to award it to Paharpur, the second best bidder, after cancelling the winning bid. After scrapping the deal with Zama Resources, which was accused of irregularities in its bid, the government decided to throw the process open to tender again. It said both Paharpur and Zama Resources, whose offending officials have since quit the company, were free to bid again. Rohatgi told Business Day that Paharpur was looking at other investment opportunities in South America, Australia and New Zealand, all of which offered "a more transparent and straightforward business environment". He said a decision to participate in another bid round for Komatiland forests "will depend on whether South Africa will offer competitive investment opportunities in the near term". Rohatgi said the South African government would have to ensure that any future bids were assessed only on objective criteria and not on political considerations. It would have to keep to its promise that the process would be fast-tracked. Paharpur had incurred lost opportunity costs of almost seven million rands as it kept funds aside for nearly 30 months to finalise the Komatiland deal. It was at a disadvantage now because all its first bid details were public knowledge. "Any competitor would thus enjoy an unfair advantage over us in the new process. Therefore, how could a level playing field be assured?" asked Rohatgi.
Source: IANS
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