Gadani Power Park: six companies submit EoIs

Six companies have submitted their Expressions of Interest (EoIs) against imported coal-based IPPs of cumulative capacity of 6600 MW to be set up at the Gadani Power Park, (Balochistan). The EoI opening ceremony was held here yesterday at Private Power & Infrastructure Board (PPIB), which was attended by the acting Managing Director PPIB, Shah Jahan Mirza, Additional Secretary M/O Water and Power, Omer Rasul, Executive Directors, Directors of PPIB, representative of Pakistan Power Park Management Company Limited, senior government officials and representatives of the bidding companies.
The EoIs were received in response to PPIB''s advertisement "Empower Pakistan Coal Power Generation through Super Critical Technology" - a flagship project of the government to produce cheap electricity. The last date for submission of proposals was October 31, 2014. In response to the advertisement, six EoIs were received before the deadline expired on Friday.
The companies which submitted their EoIs are China Gezhouba Group Company Limited; Genting Energy, Malaysia; China Machinery Engineering Corporation, China; ANC Holding of Dubai, the UAE; China Huadian Engineering Company Limited, and Harbin Electric International. An independent consultant will review the proposals according to the predefined criteria, and a notification about qualified bidders is expected to be issued within a month.
Sources close to acting Managing Director PPIB told Business Recorder that the government has set up PPPMCL as a special purpose vehicle for dealing with the ten imported coal fired projects. The PPPMCL will also be responsible for operation and maintenance after completion of project. The cost of the project has been estimated at Rs 146.627 billion ($1.488.6 billion) with a 15 percent GoP equity and an 85 percent debt financing as foreign loan.
The GoP''s equity will be $223 million whereas debt is estimated to be $1.265.3 billion. Interest rate on foreign loan will be Libor+400 basis points/@Eurbor +400 basis points and on local loan Kibor+ 300 basis points. Average interest rate will be 6 percent and repayment period is 12 years. Weighted cost of capital is estimated to be 6 percent. Sources said Central Development Working Party (CDWP) has already pointed out massive violations in Gaddni Power Park- a flagship project of incumbent government. Chief Minister Punjab Mian Shahbaz Sharif is also making all-out efforts to establish imported coal-fired projects in Punjab.