The Private Power Infrastructure Board (PPIB) has failed to evolve consensus over offering schedule for three thermal power projects for competitive bidding, sources told Business Recorder. They said that when the issue came under discussion in the board meeting on March 22 last, some members proposed that all the three projects should be offered for bidding collectively, on which the Managing Director and some other members argued that the market would not be able to manage investment for all the three projects at the same time.
"Some members were of the opinion that if PPIB presented the projects simultaneously, the bidders would go for the best project, according to their own judgement, and the other two projects might not attract investors," sources said.
It was also pointed out that for due diligence and preparation of bids every investor would have to spend nearly $3 million for each project. Thus it would not be possible for every bidder to spend substantial money simultaneously for all the three projects. Further, the parties losing in the first and second projects should have reasonable time to file bid for the second and third projects despite their full interest.
Sources said that the Board also discussed the long-term availability of gas for Faisalabad and Lahore projects and proposed that gas available for the Water and Power Development Authority's (Wapda) projects could be made available to the private sector for providing fuel with certainty and better efficiency.
"Wapda units are old and less efficient; so it is more feasible to operate them on furnace oil rather than gas," sources quoted one of the members as observing. However, it was observed that further working should be done to evaluate the viability of the proposal.
The three projects have been offered for ICB after receiving encouraging response from the investors who participated in the road shows and on meetings between the potential investors and Minister for Water and Power Liaquat Ali Jatoi.
Though PPIB had advertised the projects in the media a few days earlier, the pre-qualified bidders would be consulted about the sequencing and the timeframe informally or through bidders' conference.