PPIB opens financial bids for rental power projects

Islamabad: The Private Power Infrastructure Board (PPIB) opened financial bids for two rental power projects of 301.4 mw cumulative capacity, which are being planned by consortiums of local and international investors.

The issue of tariff of both projects will be placed before the evaluation committee prior to taking a decision.

'We have opened financial proposals for two fast track rental power projects, to be commissioned by end of 2009, and are making every effort to realise these projects as early as possible,' said one of PPIB officials. The meeting was presided over by Managing Director, Fayyaz Elahi.

The bid evaluation committee had recommended two bids Gulf Rental Power (80.5 MW), and Independent Power Pvt Ltd (220.9 MW) as 'responsive', which are in accordance with the evaluation criteria.

The proposed tariffs for Gulf Rental Power and Independent Power Pvt Ltd ares 16.3724 cents per kwh and 18.8824 cents per kwh respectively. The term of the tariff for each these projects is five years. However, the tariff will be reviewed by the bid evaluation committee and the successful bidder will be notified within a week.

PPIB stated that the government had approved fast track private sector power initiatives in order to address the immediate power shortfall in the country. This was advertised on September 26, 2008 on the basis of International Competitive Bidding (ICB).

Three bids for establishing rental power projects of around 500 MW cumulative power generation capacity were received within the bid submission deadline and the technical and qualification bids were opened on October 30, 2008 in the presence of all stakeholders and the media.

Minister for Water and Power Pervaiz Ashraf had conveyed to the investors that a bid evaluation committee comprising members from PPIB, Nepra, Wapda/NTDC and Finance Division would review the technical proposals according to the predefined criteria and the financial proposals of the bids would be opened at an early date.