Rs 41 Billion Saved by Signing Pakistans Lowest Priced Operations and Maintenance Agreements for 1230 MW Haveli and 1223 MN Balloki Power Plant

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By MG News | May 05, 2017 at 03:19 PM GMT+05:00

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Islamabad: Government of Pakistan-owned National Power Parks Management Company (NPPMCL) signed a 12-year Operations and Maintenance (O&M) agreement with China’s state-owned company SEPCOIII for its 1,230 MW Haveli Bahadur Shah Combined-Cycle Power Plant in Lahore.

CEO NPPMCL Mr. Rashid Mahmood and Vice President SEPCOIII Mr. Shi Huaiwei signed the agreement having a reference value of US$ 148 million over 12 years. With this O&M agreement, NPPMCL has managed to save the consumer Rs. 0.20/kWh from the Rs. 0.52/kWh O&M costs allowed by the regulator. This fee structure is estimated to result in direct savings of at least Rs. 23 billion over 12 years.

The O&M agreement for 1,223 MW Balloki Combined-Cycle Power Plant was signed with TNB REMACO, a subsidiary of Malaysia’s leading power company Tenaga Nasional Berhad. This agreement has a reference value of US$ 176 million. NPPMCL has managed to attain Rs.0.16/kWh lower than the O&M costs allowed by the regulation authority for this plant too resulting in direct savings of more than Rs. 18 billion over 12 years.

Under these agreements, both contractors shall have end-to-end responsibility for the operations and maintenance of the Power Plants for at least 12 years or their second Major Inspection (MI), whichever is later. SEPCOIlI and TNB shall deploy human resource and be responsible for any repair or replacement of functional parts at the plants to maintain plant availability at 92%. The O&M agreement includes robust liquidated damages (LD) contractual safeguards to ensure performance against guaranteed efficiency and availability values.

SEPCOIII and TNB were selected through an open and transparent bidding process that attracted bids from eight companies from around the globe.

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