Out of total 1,000MW Quaid-e-Azam Solar Park, the Punjab government has issued letter of interest (LoI) for 900MW to a Chinese investment company without any process of transparent selection and competitive bidding, a report in local newspaper Dawn said on Saturday.
The Punjab Power Development Board – a subsidiary of the Punjab Energy Department – had accepted an investment proposal by a Chinese company for the development of 900MW Solar PV Power project. The PPDB, which met on Sept 5, “considered the company eligible” and asked it to provide a bank guarantee.
On Sept 22, the company furnished the guarantee and the PPBD issued the letter of interest the very next day, setting the timeline of two months for the company to “complete feasibility of the project at internationally accepted standards, including environment impact assessment”, the Dawn report said.
Parallel to the issuance of the letter of interest, the Punjab Energy Department moved a summary to the chief minister to allow lease of 6,000 acres to the investment company to set up the plant. The summary is still with the CM Secretariat and may be approved within next few days.
The fast track and single source acceptance of “eligibility criteria, bank guarantee, issuance of LoI, setting an impossible deadline for feasibility study and instant initiation of summary to hand over land,” has sent jitters among the bureaucratic and legal circles attached with the power wing of the Punjab government, the report said.
Interestingly, the parent company of the same investment company, which has now got LoI for setting up 900MW plant, had been rejected in bidding for the first 100MW plant which the Punjab government wanted to install with its own money. It was rejected for being a telecom company but its subsidiary has won LoI for 900MW assignment.
“The process certainly creates issue of transparency,” noted lawyer Anwar Kamal, who deals with cases of energy sector and contractual matters, told Dawn. By issuing LoI and accepting a bank guarantee (of $900,000) through non-transparent manner, the Punjab government has already created rights for the investor. They would soon come back to haunt it and it would be situation of damned if you do, damned if you don’t. How would the regulator respond?
If the matter goes to court, how would the Punjab government justify such a unilateral acceptance of credentials of a company it had rejected only a few months ago. All these issues would be raised in due course of time, he said.
“Apparently, the Punjab government has taken a cue from its own power policy in dealing with the investor, whereas if the energy has to go to the national grid, it should either be federal Private Power Infrastructure Board (PPIB) or Alternative Energy Development Board (AEDB),” says a former head of Pakistan Electric Power Company.
“Skipping federal bodies in matters of national grid is beyond comprehension. Two-month deadline cannot create a bankable feasibility study. There were far more transparent selection criteria in the process of rental power, which courts did not accept. How would this one go, one needs to wait and see,” he wondered.
Sania Awais, the MD PPDB, said: “The entire process is transparent and falls within the parameters of the Punjab Power Policy 2006 which was revised in 2009. It allows investment in alternate energy sector.
“We had given umbrella advertisement, inviting investment in the park and got response and issued LOI consequently.”
As for awarding 900MW out of 1,000MW, she said the park capacity would subsequently be increased to 1,500MW.
Dubious is the middle name of this government,you want to surprise us,write about something good the government is trying to do lol.
Islamic Republic Of Pakistan Must stands on it's own FEETS! Pakistan first policy is need of the hour, Appeal to My dear country men/women ladies & gentlemen Read the Holly Quran Allah help them who help themselves! we have every thing to be happy Rich, Healthy out of foreign zionist negative influence, so Be Happy Long Live Ir Pakistan With Pakistanis First Made in Pakistan so Go Nawaz, Go Shabaz
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