Govt gets three bids for 590MW Mahl project

Published September 28, 2013
- File Photo
- File Photo

ISLAMABAD: The government on Friday received three proposals from Chinese and local companies for setting up of 590MW Mahl Hydropower Project in Azad Kashmir at an estimated cost of about $1 billion.

The bids were opened by a committee, led by Secretary of Water and Power, comprising representatives of the governments of Azad Jammu and Kashmir and Punjab, besides the Water and Power Ministry, National Transmission and Dispatch Company and Private Power and Infrastructure Board.

The companies which submitted their proposals by the deadline on Friday included CWE Investment Corporation and Sinohydro Group of Limited (both from China) and Nishat Group Associated, led by leading businessman Mian Mohammad Mansha.

The Mahl Hydropower Project is to be located on dual boundary of Rawalpindi, Punjab and Bagh in Azad Jammu and Kashmir, downstream of Kohala Bridge and upstream of Dhalkot Bridge linking AJK with Punjab.

The proposals opened on Friday in the presence of bidding companies would be evaluated by the bid committee on the basis of technical and financial credentials of the applicants within a month.

The highest ranked party would be offered letters of interest (LoI), after approval by the PPIB to conduct feasibility study of the project.

Physical work on the project is expected to start in December 2016, after completion of the feasibility.

To be set up with an estimated cost of $1bn, the government expects the project to provide jobs and generate 3.6bn units per annum of clean-reliable and affordable electricity into the national grid.

The government of AJK will receive millions of rupees on account of water use charges during the term of project operations. The project will be implemented on build-own-operate-transfer basis.

Expressions of Interest were invited from prospective investors through national and international media in June 2013.

Initially six companies of South Korea, China and Pakistan showed their interest in development of the Mahl Project and finally three companies submitted firm proposals on Friday.

The project is among the priority of the government as part of its strategy to bring in cheaper electricity in the national grid.

As one-window operation, PPIB is responsible for development of the project to meet future energy requirements.

Currently, PPIB is processing 14 run-of-the-river hydropower projects of 6,848MW generation capacity in the private sector.

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