Coal procurement process: Lucky Commodities lodges complaint with minister

ISLAMABAD: M/s Lucky Commodities is said to have complained with caretaker Minister for Power and Petroleum, Muhammad Ali on coal procurement process for Sahiwal imported coal-fired power plant,

In a letter to caretaker Minister, the company referred to a bidding document dated November, 2023, floated by Huaneng Shandong Ruyi (Pakistan) Energy (Private) Limited for procurement of coal for its coal-fired power plant in Sahiwal, with a bid deadline set for November 29, 2023.

The company argued that it seems this tender may be inclined to favor a single supplier who has been supplying coal since the inception of this process at the rate exceeding Rs 70,000, while the actual rate was around Rs 50,000. Only one supplier can participate and win in this bidding as per criteria set.

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The company further noted that pursuant to Clause 9 of Section One (Instructions for Bidders) of the Bidding Document, bidders are required to demonstrate a substantial history of imported coal through sea shipments. Specifically, the said provision stipulates that the bidder should have a documented history of importing not less than 300,000 metric tons of coal during the period spanning from November 2022 to October 2023.

While acknowledging the need for stringent criteria to ensure the reliability of the coal supply, the company claims that the magnitude of the specified import quantity and the additional condition that the coal must be imported with a year for trading purposes appears to be tailored in a manner that may inadvertently hinder the process of competitive bidding and pose a barrier for coal supply entrants in the market.

This raises concerns about the fairness and transparency of the bidding process due to the non-competitive chance to other industry players for submission of bids.

Copyright Business Recorder, 2023