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Nepra to devise a mechanism for purchasing coalNews WAALI

ISLAMABAD – National Electric Power Regulatory Authority (NEPRA) will consider a mechanism for spot purchase of coal from Afghanistan/other sources for a longer period of 3 to 6 months instead of the current monthly basis.

In a public hearing scheduled for today (Monday), NEPRA will consider the guidelines for coal-fired power plants for procurement of spot coal from Afghanistan/other sources. According to NEPRA’s revised guidelines for spot procurement of coal from Afghanistan/other source, the regulator has indicated that coal-fired power plants shall ensure that procurement of coal from Afghanistan is conducted in a fair and transparent manner, while the procurement process should be efficient and economical. it must strive to ensure value for money for consumers. Here are some of the guidelines: IPPs based on imported coal must first ensure that local coal such as Thar coal is available that can be used keeping in mind the technical requirements of plants; IPPs will estimate the total/quality of coal to be procured in the next six months; if there is no local coal available that meets the desired specifications, then IPPs will proceed with spot purchase in accordance with this mechanism; The bidder should meet minimum eligibility criteria which will, among others, include the submission of a bid bond which will be calculated as – Price Quoted x Quantity Quoted x 5 percent; the paid up capital of the bidder shall be Rs100 million minimum and shall be considered for minimum eligibility criteria.