Moldovatransgaz 'inflated costs' of Razdelnaya-Ismail repair

Moldovatransgaz inflated by as much as 58.7 million lei the costs of the repair on the Razdelnaya-Ismail gas main, according to a report presented at a public meeting of the National Energy Regulatory Agency ANRE on Tuesday, Info-Prim Neo reports. Tatiana Cebotari, one of the experts that audited Moldovatransgaz, said the company had failed to observe the lowest cost principle when selecting the contractor, a Ukrainian company. At first the contractor presented a bid of $18.6 million, yet 20 days later Moldovatransgaz agreed to a new offer of $25.1 million. Moreover, the Ukrainian company involved several intermediaries in the process, which also added to the costs. The audit revealed two types of invoices: one issued by the actual contractor, for $77.25 per one linear meter of repaired pipe, and another issued by an intermediary off-shore company, for $356.81 per meter, or by 4.5 times more expensive. Similarly, the cost of new pipes was inflated three-fold. Other items were overestimated by as much as 21 times. ANRE order Moldovatransgaz to present within a month a plan of actions to correct the revealed deviations. However, Moldovatransgaz manager Gheorghe Beliciuc said he disagreed with the decision and would challenge it in court. “All the repair works, all the economic and technical terms, including prices, had been agreed with ANRE”. ANRE director Victor Parlicov stated that the violation of the procurement rules was “unacceptable”. “No one is doubting the necessity of repairing this segment of the gas main and of honoring the obligations before Gazprom, but Moldova's legislation, including on procurement, must be respected by all citizens and firms operating in Moldova”, declared Victor Parlicov. ANRE's decision and the audit report will be sent to Moldovagaz, which is Moldovatransgaz's mother company, to Parliament and the Government, as well as to the General Prosecutor's Office and the Anti-corruption Center.