ISLAMABAD, July 10: The government will hold bidding this month for setting up about six independent power projects (IPPs) to generate 2,200MW electricity on fast track basis.

Official sources told Dawn on Thursday that the open bidding for four IPPs with a total generation capacity of 1,200MW electricity will be held on July 16 in Islamabad. These projects include a 300MW power project on rental basis and three thermal power projects of 200-300MW each.

These sources said a large number of companies had turned up at the pre-bid conference showing interest in setting up of dual fuel combined cycle power projects in different parts of the country and hence they were asked to come up with their comprehensive bid proposals to be opened at the bidding conference.

Likewise, the government has ordered re-bidding for two IPPs of 500MW each in Dadu and Faisalabad because of poor response in the initial bidding held last month. The sources said that a lot of investors had requested the government to extend bidding date to provide ample time for preparation of financial bids but the government did not oblige.

As a result, most of the bidders could not prepare their bids and only two bidders submitted their proposals for the two projects and the government had to cancel the bidding because of single bids for both projects.

Now the Private Power and Infrastructure Board (PPIB) – the one window operation for IPPs - has been asked to make arrangements for fresh bidding because the power shortage has remained unmanageable this summer, leading to over five hours of load-shedding everyday throughout the country.

These sources said most of these projects are expected to be completed before December 2009 but the electricity shortage would continue for another couple of years because the new capacity addition being planned now would meet only a part of the rising energy needs.

Already, the shortage of electricity has almost doubled from 3000MW to about 6000MW during the last 12 to 18 months causing huge problems to commercial, industrial and domestic consumers in the country.

The previous government had failed to plan future electricity requirements and it is generally difficult to add new capacity over a short period of time. Even a thermal power project takes at least 15-18 months to start commercial production.

The government has firmed up short and long-term programme to generate additional 7,000MW of electricity by 2013 but by the time the additional electricity requirement would rise to more than 9,000MW even if economic growth rate of 4-5 per cent is achieved.

In the short-term, arrangements have been finalised for 15 new power projects. Of them 11 power projects are currently under construction. By December 2009, 1,500MW of new electricity units would have been added as part of the first phase of the plan. These includes Orient power project at Baluki, near Kasur (225MW), Attock Generation Power, Rawalpindi, (165MW), Atlas Power Company, Sheikupura near Lahore (225MW), Sapphire Group at Muridke, near Lahore (225MW), Fauji Mari power project in Dharki, Sindh (MW225), Nishat Power project, Lahore, (200MW), Engro Power project at Qadirpur, Sindh (227MW), Saif power project, Sahiwal, (225MW), Nishat Power company, Chunnia, (200MW) and Halmore power project, Bheki, Sheikupura (225MW).