19 May 2004	Wednesday	28 Rabi-ul-Awwal 1425

KARACHI, May 18: The City District Government Karachi has agreed to enhance the period from 60 days to 90 days for submission of bid documents by pre-qualified firms for 100 million dollars "Waste to Energy" project.

A decision to this effect was taken at an investors' conference held on Tuesday at Civic Centre. The meeting, presided over by DCO Karachi, was attended by high officials of the CDGK and representatives of nine pre-qualified firms for the project.

According to well-informed sources, interested firms raised a number of reservations and queries about the project. Some of their queries were answered and consensus was reached on the issues. But a number of reservations are yet to be allayed.

The meeting decided that the bidder at their own would conduct pre-feasibility and detailed feasibility studies. The bidders first demanded that the CDGK should commission the feasibility. However, they finally agreed to carry out the study at their own.

It was also informed that the CDGK had identified sites at Jam Chakro, Gond Pass Hub River Road and Rehri for setting up power-generation plants from waste. Bidders would do the site audit and a final selection of site would depend upon assessment and evaluation of received bids.

It was also agreed that timeframe for handing over of project, to be constructed on Built, Operate and Transfer (BOT) basis to the CDGK could be changed. However, this would be ascertained on the quantum of investment and financial proposals.

The current timeframe for handing over the project to CDGK is five years whereas bidders want it to be from 15 to 25 years in order to recover the investment.

Uninterrupted supply of garbage and purchase of electricity to be generated from the waste were two of the main issues which were discussed in details as bidders had a number of reservations on these issues.

They sought guarantee for interrupted supply of garbage to plant, for which it was suggested that successful bidder might establish its own network for collection.

It was proposed that unlawful scavenging might be banned under Section 144 to provide garbage to the plant while evolving a mechanism to involve scavengers in the collection process.

About purchase of electricity, it was stated that the KESC and PPIB were approached in this regard. However, the CDGK is also a potential buyer of electricity generated for the pumping station of KWSB at Gharo and its other offices and installations and hospitals and schools of the CDGK.

Regarding the issue of sovereign guarantee for the project, it was decided that the CDGK would approach the federal government and the Sindh government to provide sovereign guarantee to foreign investment. -PPI