Ministry defends outsourcing of O&M of Nandipur project


The Ministry of Water and Power while strongly defending its decision to outsource the operation and maintenance (O&M) 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 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.
‘The News item has done little more than to create a negative impression about a positive effort by the Government to salvage an almost lost cause, which if abandoned will have caused billions in costs and payments and damages,’ the clarification added.
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 objective was to reduce expenditures, and to bring about latest and efficient practices in power plant management, it added. 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 M/s Hydro Electric Power System Engineering Company of China (HEPSEC) for a period of ten years or two major inspections, whichever is later.
After evaluation and scrutiny of the bids, HEPSEC’s bid was found to be the lowest responsive bid out of the four bidders. HEPSEC is a subsidiary of Power China Group, and has wide-ranging experience of providing operations and maintenance services for power plants all over the world.
The Nandipur Power Plant has been fully operational since its COD in July 2015 and was currently operating on furnace oil. The plant is destined to run on gas and for that very reason, work is already underway to convert the Plant’s operation to natural gas. With this conversion, the generation capacity of the Plant will increase from 425 Megawatt to 525 Megawatt, the statement from the Ministry said.—APP

Share this post

    scroll to top