Bids for 1,191MW rental projects opened

[LahoreEstate]

ISLAMABAD: The Private Power and Infrastructure Board (PPIB) Monday received ten bids for 1,191 MW of cumulative capacity, translating to around $1.42 billion of investment.

Managing director PPIB, Fayyaz Elahi said fast track rental power projects for 2009 were being considered, which would hopefully be the last exercise for soliciting rental projects under the current fast track initiatives so as to plug the current supply demand gap. He said, “We would not like to commit too many rentals beyond the need to eliminate the load shedding presently being experienced in the system”.

Senior officials of the PPIB, WPPO, NEPRA and Ministry of Finance attended the opening ceremony. A two-envelope approach has been adopted for bidding the first envelope of the bids containing Qualifications i.e. Technical and Financial were opened, while the tariff bids (envelope-II) will be opened after evaluation of Qualifications.

The bid opening ceremony is a continuation of ‘Fast Track Private Power Projects’ initiative of the government, the initial phase of which has already resulted in project solicitations of 780 MWs of rentals expected to come on line by end 2009 and a fast track IPP of 172 MW expected by mid 2010, while another three IPP proposals of 964 MW were under evaluation which are expected to be commissioned in 2010/11.

A healthy response has been received, despite the worldwide economic crunch. A total of fifteen (15) parties procured the Request for Proposals (RFP) and ten parties have submitted bids which include 57.81 MW Premier Energy proposed at Pasrur, 110 MW coal fired New Park Energy proposed near Nooriabad, 170 MW Ruba Energy proposed at Batapur near Lahore, 73.92 MW Tapal Group Project proposed at Kamoki, 220 MW Reshma Power proposed at Narwala near Faisalabad, 100 MW Trimax Power proposed near Chakwal, 85 MW Sialkot Rental Power proposed at Sialkot, 170 MW MHK Energy proposed near Gujrat, 138 MW Radian Energy proposed at Pasrur and 66 MW Grid Power Generation proposed at Mirpurkhas.

The qualifying bidders are expected to be issued Letters of Award (LoA) by end March 2009 and the projects are expected to be commissioned by end 2009. staff report

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