Services in 8 areas before Rousch plant takeover: NPPMCL seeks exemption from PPRA rules

ISLAMABAD: The National Power Parks Management Company (NPPMCL) has sought exemption from PPRA rules to procure services in eight areas prior to Rousch Power Plant takeover before December 31, 2024 as per the decision of federal government, well-informed sources told Business Recorder.

In a communication to Power Division, NPPMCL noted that pursuant to nomination of NPPMCL as the ‘Designated Entity’ to take over the Complex and Site of Rousch Power Plant vide Cabinet’s decision taken in Case No. 291113312024 dated October 10, 2024 against summary presented by the Power Division and directions given in the meeting dated November 19, 2024 of the National Task Force on implementing structural reforms in the power sector, NPPMCL team visited the site on November 20, 2024 for preliminary site visit and meeting with the management of Rousch Pakistan Power Limited (RPPL).

In view of the discussions with RPPL regarding modalities of handing over the Complex and Site, it transpired that in order to keep the Plant in operable and working condition, following services through relevant contractors shall be required: (i) O&M Services:(ii) LTMSA Services; (iii) Security Services; (iv) insurance services; (v) third-party HR services; (vi) legal services; (vii) audit services; and (viii) horticulture services for maintaining the fruit orchards, trees and lawns.

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Being a Public Sector entity, NPPMCL is obligated to follow the procedure prescribed in PPRA Rules, 2004 for procurement of required services. However, a period of four months is usually required for procurement under PPRA Rules, 2004. Since, as per the Cabinet approval and directions of Task Force, the Complex and Site of Rousch Power Plant are to be taken over by NPPMCL latest by December 31, 2024, thereafter, it will not be possible to line-up the required services before December 31, 2024.

The NPPMCL has requested Power Division that necessary exemption be obtained at the earliest from application of PPRA Rules, 2004 for procurement of necessary services by NPPMCL.

It has requested that for the immediate operations after taking over, exemption of Federal Government in accordance with section 166(4) & (5), as the case may be, of Insurance Ordinance, 2000 may also be obtained.

The NPPMCL is to acquire services of National Engineering Services Pakistan (NESPAK) for smooth taking over of complex and site of 450 MW Rousch Power Plant.

M/s Rousch and Government of Pakistan (GoP) recently struck a deal, after which the plant is to be handed over to the government. However, a dispute between GoP and German company M/s Siemens, a partner in Rousch still exists and SAPM on Foreign Affairs, Syed Tariq Fatemi has been assigned the task to resolve the dispute. The scope of services is broadly divided into two phases i.e. pre-taking over of Rousch Power and post-taking over of Rousch Power.

In the first phase, the Consultant will be responsible for following assignments/works besides assisting NPPMCL in all aspects related to the taking over, comprehensive technical assessment and smooth transfer/ transition of the Rousch Power Plant in the name of NPPMCL:

Plant Technical Assessment: (i) preparation of complete list of plant equipment/parts through available drawings, data and physical verification of the same for the purposes of taking over; (ii) visual inspection and O&M data analysis of plant’s equipment/machinery; (iii) evaluation of gas turbines, steam turbines, HRSGs, generators, transformers, control systems, switchgears and other allied equipment including maintenance history, TILs, upgradation, RCAs, capacity, and operational status. Review of the fact finding, Plant Life assessment, condition monitoring and predictive maintenance reports; (iv) review of the previous plant insurance/external audit/ internal audit/ risk audit reports; (v) review of the EHS record, incidents, near misses/fire incidents; and (v) identify and document any deficiencies or deviations from optimal operating conditions.

Performance Test: (i) preparation of performance test procedures according to ASME PTC46 (Heat Rate & Output); (ii) heat rate test for part load (25%, 50%, 60%, 70%, 80%, 85% and 90%); (iii) witness the heat rate and output tests and issuance of Certificates (Heat Rate & Plant Capacity); (iv) cost requirement for heat rate and capacity test including fuel, O&M/LTMSA and other allied costs;(v) to conduct heat rate and capacity tests on primary fuel in collaboration with Rousch Power to establish benchmark parameters.

Copyright Business Recorder, 2024