TPS Guddu ST-16 restoration: China’s Herbin sounds alarm over new tender process

ISLAMABAD: M/s Herbin Electric International Company Limited (HEICL), China, the OEM and EPC Contractor for the Thermal Power Station (TPS) Guddu, have raised concerns regarding the new tender for the rehabilitation of Steam Turbine (ST)-16.

In a letter to the Chief Operating Officer of CPGCL, TPS Guddu, the Senior Manager of Customer Services at HEICL expressed appreciation for the officials attending the online meeting on November 27, 2024.

The manager noted that the company’s team had sought special approval to visit Pakistan and discuss the deviations and clarifications in its bid submission face-to-face. However, due to the prevailing security challenges in Pakistan, the meeting was held online.

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The company also expressed disappointment that representatives from Nespak and GHCL were absent from the meeting.

According to HEICL, an accident involving ST #16 occurred in August 2022. Over the past three years, HEICL, the OEM and EPC contractor, have been working diligently to support CPGCL in assessing the damage to various equipment at the plant. The company also submitted a detailed report to CPGCL in June 2023 as per its contractual obligations.

HEICL has provided a brief explanation regarding the technical and commercial clarifications and deviations, stating that the tender is complex as it involves work on multiple pieces of equipment, including the steam turbine, generator, HRSG, controls, electrical systems, and other associated Balance of Plant (BOP) systems.

The company believes that some clauses in the tender document are more suited to a Greenfield EPC project rather than a rehabilitation project.

The dynamics of new installations differ from those in rehabilitation projects, where the exact nature of faults or damage may not be fully assessed. In such cases, both the owner and contractor must work closely to address any additional scope on an “as is, where is” basis.

The EPC contractors argue that they have collaborated effectively with CPGCL and NESPAK, participating in numerous technical meetings and site visits to thoroughly assess the project. Both parties have made substantial investments to restore the units to operational status.

“As the OEM and EPC contractor for CPGCL, we have developed a comprehensive proposal that addresses all necessary aspects to serve the best interests of both the employer and the contractor, while considering existing limitations and opportunities,” said the Senior Manager. He added that HEICL believes any deviations or clarifications can be effectively resolved through mutual discussions among the Employer, Consultant, and Contractor, ensuring alignment and clarity to bring the units back into operation as soon as possible.

Copyright Business Recorder, 2024