Ministry defends decision

ISLAMABAD: The Ministry of Water and Power while strongly defending its decision to outsource the operation and maintenance of the Nandipur Power Project said it had been done to bring in world class efficiency.

The Ministry spokesman in a statement dismissed the incorrect report about the Nandipur Power Project published in a section of press and said the news was based on partial or misconceived facts and data. The statement said the Nandipur project had been put into generation against all odds. 

Nepra has given tariff to the plant including the O&M costs both on RFO and gas as fuel. The costs related to fixed and variables components of the costs along with the application of indexation as per Nepra determination gas part is reasonably and workable, the statement said.

For the furnace oil part although the fixed tariff was also within limit after indexation however the variable part was lower and could have apparently resulted in cash loss had the plant continued to run on furnace oil.

The ministry said the total O&M tariff allowed by Nepra on gas operation is Rs 0.543 unit and lowest bid received was Rs0.4873 unit a saving of Rs0.0557 per kWh.

The statement said the decision to outsource the operation and maintenance of the Nandipur Power Plant was in pursuance of the recommendations of the Regulator and a policy decision by the government of Pakistan to hand it over to experienced international operators in line with prevalent industry practice.

The ministry said after a transparent public procurement process carried out in line with the PPRA rules.

The agreement for long-term operation and maintenance of the 425 Megawatt Nandipur Power Plant was signed at Nandipur between Northern Power Generation Company Limited (NPGCL) (a GoP owned corporate entity working under the management of the Genco Holding Company Limited) and Ms Hydro Electric Power System Engineering Company of China (HEPSEC) for a period often years or two major inspections whichever is later.