Government-owned National Power Parks Management Company (NPPMCL) signed a 12-year Operations and Maintenance (O&M) agreement with China's state-owned company SEPCOIII for its 1,230MW Haveli Bahadur Shah Combined-Cycle Power Plant in Lahore. CEO NPPMCL Rashid Mahmood and Vice President SEPCOIII Shi Huaiwei signed the agreement having a reference value of $148 million over 12 years.
With this O&M agreement, NPPMCL has managed to save the consumer Rs 0.20/kWh from the Rs 0.52/kWh O&M costs allowed by the regulator. This fee structure is estimated to result in direct savings of at least Rs 23 billion over 12 years. The O&M agreement for 1,223MW Balloki Combined-Cycle Power Plant was signed with TNB REMACO, a subsidiary of Malaysia's leading power company Tenaga Nasional Berhad.
This agreement has a reference value of $176 million. NPPMCL has managed to attain Rs 0.16/kWh lower than the O&M costs allowed by the regulation authority for this plant too resulting in direct savings of more than Rs 18 billion over 12 years. Under these agreements, both contractors shall have end-to-end responsibility for the operations and maintenance of the power plants for at least 12 years or their second Major Inspection (MI), whichever is later. SEPCOIlI and TNB shall deploy human resource and be responsible for any repair or replacement of functional parts at the plants to maintain plant availability at 92 per cent. The O&M agreement includes robust liquidated damages (LD) contractual safeguards to ensure performance against guaranteed efficiency and availability values. SEPCOIII and TNB were selected through an open and transparent bidding process that attracted bids from eight companies from around the globe.

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SAVINGS IN AWARD OF O&M CONTRACT 1230 MW CCPP HAVELI BAHADUR SHAH
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O&M Cost allowed by NEPRA                                         PKR 0.52/kWh
O&M Cost achieved for HBS                                         PKR 0.32/kWh
Saving per kW                                                     PKR 0.20/kWh
Total saving on net output
(12 years at 92% availability factor)   1,207,000 x 24 x 365 x 12 x 0.20 x 92%
                                                         ie Rs  23,345,890,560
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SAVINGS IN AWARD OF O&M CONTRACT 1223 MW CCPP Balloki
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O&M Cost allowed by NEPRA                                         PKR 0.5145/kWh
O&M Cost achieved for Balloki                                     PKR 0.3554/kWh
Saving per kW                                                     PKR 0.1591/kWh
Total saving on net output
(12 years at 92% availability factor)   1,198,555 x 24 x 365 x 12 x 0.1591 x 92%
                                                           ie Rs  18,441,715,895
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