ISLAMABAD, July 18: Pakistan has received a total of 35 applications from 20 local and foreign companies to set up around 1,300-mw of three thermal power stations in Lahore, Uch and Faisalabad at an estimated investment of $1 billion. The applications would be evaluated under a pre-determined qualification criterion and then international competitive bidding would be held under the supervision of the National Electric Power Regulatory Authority (Nepra) to award the contract to the investor. Last date for the submission of proposals was July 15, 2005.

The lowest cost and minimum levelized tariff would be the dominant factor to award the contract to the bidder, as most of the companies are of international repute in the power sector, belonging to USA, UK, China, Japan, Malaysia, UAE, Turkey and Pakistan.

There are at least three groups — Marubeni of Japan, Globeleq of UK and Hub Power Company — who have applied for all the three projects. Nine companies would take part in the bidding of two projects each while rest of the eight companies are interested in one project each.

Of the total 20 prospective bidders, only seven companies are local including Hub Power Company which is now a locally based but its major shareholders belong to UK and Saudi Arabia.

The projects which were offered to the investors would be located at Uch, Faisalabad and Lahore. Following is the brief description of the project and companies who are interested to develop them.

The first project - 400-450-mw Uch-II Power Project - would be located at Kashmore, Sindh and near Wapda’s existing power station at Guddu, Sindh. Using low BTU gas from Uch gas field, available for 25 years, the project will be based on combined cycle technology.

National Transmission and Dispatch Company (NTDC) will be the power purchaser while Oil and Gas Development Company Limited (OGDCL) will supply the gas. The 11 bidding companies include Tenaska Holdings Corporation and AES Oasis Limited of USA, Globeleq of UK, Marubeni Corporation, Mitsui & Co. Ltd. and Sumitomo Corporation of Japan, Malakoff Berhad of Malaysia, PALMET of Turkey, Al Ghurair Investment LLC of UAE, China National Machinery & Equipment Import & Export Corp (CMEC) of China and Hub Power Company Limited.

The second project – 450-mw Power Project at Faisalabad - will be located near an existing power station of Wapda at Faisalabad and will use dual fuel, i.e. pipeline quality gas and oil.

Faisalabad Electric Supply Company (FESCO) will be the power purchaser while Sui Northern Gas Pipeline Limited (SNGPL) will be the gas supplier. The 13 interested parties for this project include AES Oasis Limited of USA, Globeleq of UK, Marubeni Corporation of Japan, PALMET of Turkey, Al Ghurair Investment LLC of UAE and remaining eight local companies namely Nishat (Chunian) Ltd, Hub Power Company Limited, Rupali Polyester Limited, Ibrahim Fibres Limited, Enerpro (Pvt) Limited, Gulistan Group of Companies, Fauji Foundation and Shirazi Investments (Private) Limited.

The third project — 350-400-mw Power Project, will be located at Chichoki Malian near Lahore, and will be based on combined cycle technology. It will use pipeline quality gas and oil as fuel.

Lahore Electric Supply Company (LESCO) will be the power purchaser, while SNGPL will supply gas to the project. A total of 11 companies have applied for this project. These include Z-Tech Inc of USA, Globeleq of UK, Wartsila Pakistan (Pvt) Limited of Finland, Marubeni Corporation of Japan, China National Machinery & Equipment Import & Export Corp. (CMEC) of China. The remaining six local companies include Gulistan Group of Companies, Nishat (Chunian) Ltd, Hub Power Company Limited, Rupali Polyester Limited, Fauji Foundation and Shirazi Investments (Pvt) Limited.

This is after more than a decade that prominent energy companies of the world have shown such interest in developing the power sector of Pakistan.

An official statement said the country is in dire need of power in the coming years. The demand and supply position of power system worked out by the experts indicate the shortages will start in 2006 and increase to around 5,500-mw by the year 2010, if no remedial measures are taken. These estimates have been made based on a low growth scenario.