ISLAMABAD, May 22: The federal government has been urged to provide a reasonable timeframe to international firms for taking part in the bidding for the $1.5 billion Neelum-Jhelum Hydropower Project near Muzaffarabad in Azad Jammu and Kashmir.

Sources said on Sunday that Islamabad-based diplomatic missions of the European countries had informed the government that their companies were interested in the project but the time allowed by Wapda for such a big project was not sufficient to prepare documents and arrange $1.5 billion financing.

The sources said that the diplomats have also approached President Gen Pervez Musharraf and Prime Minister Shaukat Aziz regarding the situation.

Wapda sought bids for 969-mw project on Feb 28, this year with a deadline of April 30, which was later extended till May 31, 2005.

The project involves one of the most difficult designs as it required about 32-km tunnel to divert Neelum waters. Under the design, the tunnel should pass underneath the Jhelum riverbed.

Wapda’s bid documents suggest that all technical information provided by it was tentative and the bidders should submit their bids on their own risk and cost.

It means that companies of repute would have to confirm the feasibility study of the project which would require reasonable time to ascertain soil data and estimate tunnelling requirements and costs for bidding, sources in the water and power ministry siad.

They said that the diplomats have asked the government that either Wapda should take the responsibility for soil data provided in the feasibility study or extend the time for the bids.

Senior officials of the power ministry concede that due to size and nature of the project, no contractor of international repute would take part in the bidding without undertaking verification study of technical aspects and it would also be necessary for the international financial institutions to provide $1.5 billion financing.

They said even if Wapda was made responsible for the feasibility study, the preparation of bid documents could not be completed in two to three months. They also agree that it was nearly impossible for any company to arrange financial commitments worth $1.5 billion in such a short time for a difficult project like Neelum-Jhelum given its geopolitical and geological nature.

The sources said about nine companies have so far purchased the bid documents including two European companies. None of the remaining local and Chinese companies have the past experience of undertaking such a project.

Discussions with officials suggest that five Chinese companies have purchased the bid documents. They include Sino Hydro that gave up the Gomal Zam dam project, C & W which is behind schedule in Mangla dam raising project, followed by China Petroleum and Dong Fong.

Local construction firms like Husnain Construction, Descon and Ashraf D. Baloch are also in the run.

The project required a special technique called Tunnelling Boring Machine (TBM), which was not available with the companies, the officials confirmed.

Two Europeans firms — Siemens of Germany and Vinci of France — have also purchased bid documents for the project but they have also asked the government to extend the bid deadline for at least nine months.

The officials said that due to Indian plans to construct Kishanganga project on river Neelum, Pakistan could not afford to delay the project, but added that local construction firms could be hired for the construction of access roads and camp offices to secure rights over the river.