Apropos a news item under the title "Pepco accused of violating ADB criterion" in Business Recorder August 17, 2011, the spokesman of Pepco has clarified the following: It is incorrect that PEPCO is violating ADB procurement guidelines / criterion.
The National CFL Project aims to procure 30 million high quality Compact Fluorescent Lamps (Energy Saver Lamps) through International Competitive Bidding (ICB) and to distribute to the domestic consumers free of cost in exchange of 40-100 Watt incandescent bulbs. In the Project, a very transparent process of evaluation and award is being exercised under the procurement guidelines of Public Procurement Regulatory Authority (PPRA) and ADB which is financing this project under the Energy Efficiency Investment Program co-financed by French Development Agency (AFD).
The hazard of mercury contents of CFL is fully taken care of in the project design, strictly in accordance with the guidelines of Government of Pakistan. There will be a vigorous media campaign through which the public at large will be educated to avoid mercury hazard if any CFL installed in their house is broken, the damage CFL collection methodology and waste management facility. Therefore, this issue has already been taken fully care of in the project design.
Highlighting the benefits of the project, the PEPCO spokesman has that the said program anticipates following benefits and CDM revenues: It will reduce peak demand by about 1100 MW. It will avoid generation capacity of 1600 MW which will avoid investment of $2 billion. To reduce energy consumption by about 2100 GWh per year. Project will benefit both the utility companies and consumers. It will save almost Rs 300 per lamp per year in the electricity bill of consumers.
CDM Revenues: It shall reduce emission of Carbon Dioxide about one million tons. The project envisages Carbon Credits of US $32 million upto 2018 (US $12 million by 2012 and another US $20 million by 2018) It is pertinent to note that the Project also envisages establishment of Lamps Waste Management Facility in each provincial capital for spent CFLs.
BR staff reporter Mushtaq Ghumman responds: official documents clearly state that M/s Firefly Lighting China was declared lowest responsive bidder for 210 million CFLs but the supplier extending validity by imposing condition of accelerated price which is not in line with the ADB procurement guidelines. After approval of Ministry of Water and Power, Asian Development Bank has been requested for according concurrence to cancel the round -1 bidding and include procurement of 10 million in the tender of 20 million.