Multimillion dollar contract for 320 megawatts plant: power ministry's top brass backing GE Energy

The top brass of the Ministry of Water and Power is reportedly supporting the award of a multimillion dollar contract to GE Energy, without going through the tender process, for the erection and commissioning of 320 MW plant gifted by the United Arab Emirates (UAE), sources close to Shahid Sattar, Energy Advisor, Ministry of Water and Power revealed exclusively to Business Recorder.
The UAE has donated a 320 MW power plant comprising the following gas turbines: 05 Nos. frame-5 gas turbines of 16 MW capacity each and 08 Nos. frame-6 gas turbines of 30 MW capacity each. Sources said Abu Dhabi Water and Electricity Authority (ASWEA) awarded the contract to ADAT for dismantling, sea worthy packing, transportation to port and marine transportation to Karachi Port.
The dismantled gas turbines are expected to arrive in Pakistan by August 2010 for ultimate installation on the premises of GTPS, Faisalabad. The sources said gas turbines were originally designed and manufactured by GE and were commissioned in Abu Dhabi in 1973-74 and 1994-95. Prior to dismantling the plant, the gas turbines were subject to operational test under supervision of GE representatives.
According to Shahid Sattar, a designer and manufacturer of gas turbines, the services of GE for re-erection and guaranteed performance of said power plant at GTPS, Faisalabad would be sought. Consequently sealed offer is invited for erection, civil works, testing and commissioning of gifted power plant at Faisalabad along with supply of additional new equipment/material to make the power plant operationally complete in all respects.
The firm has been asked for a bid proposal to accompany a bid bond amounting to 2 percent of the bid value in equivalent rupees to be issued from any scheduled bank of Pakistan, with tentative validity up to December 31, 2010. Upon finalisation and formal signing of the contract agreement, the said bid bond shall be returned, in original, upon submission of a performance guarantee amounting to 15 percent of contract value issued by a scheduled bank of Pakistan.
The ministry is of the view that a preliminary scope of work has also been sent to GE Energy for completion of the plant. The financing of the project is intended to be met out of proceeds of USAID funding. The sources said a request for this purpose has already been made to USAID. GE Energy has been requested to submit a technical and financial proposal for re- erection of gifted power plant at the earliest but not later than July 25, 2010.
Wapda's Chief Resident Representative at Karachi (CRRK) has a full-fledged establishment at Karachi to take care of all formalities dealing with cargo handling for the importation of various power plants/equipment. Pepco is also using the same facilities for expeditious clearance and transportation of equipment pertaining to its power plants, etc. The transportation of the cargo to be shipped from UAE will also be handled through Wapda's approved transportation contractors on receiving the subject power plant. The contractors have the necessary expertise/resources to expeditiously and safely transport the equipment from the port to any site in Pakistan.
The sources said adequate storage area, if required, would be available at Port Qasim. Docking and unloading of the vessels carrying subject power plant will be prioritised in consultation with relevant port authorities to ensure early release of vessels. According to sources, the government will also exempt the plant from necessary third party inspection requirements of gifted equipment and this exemption has been obtained from the Ministry of Commerce, Government of Pakistan vide its letter No 20(10/2006-Imp-I dated 01.07.2010.