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HYDERABAD ELECTRIC SUPPLY COMPANY OFFICE OF THE CHIEF EXECUTIVE OFFICER HESCO HYDERABAD
No CEO/HESCO/CE(P&E)/DM(SPP)/ - Dated; 0 4 .05.2012
The Registrar, National Electric Power Regulatory Authority (NEPRA) 2nd Floor, OPF Building, G-5/2, —.AD CZ) ISLAMABAD
C-Tcv" ) tk. c,4„41., — LI-4(;› Subject:- POWER PROCUREMENT REQUEST OF HESCO IN RESPECT OF
M/S SALIM YARN MILLS (PVT) LIMITED UNDER NEPRA'S INTERIM POWER PROCUREMENT REGULATIONS-2005 Reference:- 1. S.R.O 265(1)/2005 Notification Dated.16.03.2005.
2. Your office letter No.NEPRA/PAR-100/1208-18 Dated 09.02.2012.
M/s Salim Yarn (Pvt) Limited has offered 2.0 MW (Gas based) Power to
HESCO. HESCO intends to purchase the power from M/s Salim Yarn (Pvt) Limited under SPP
on take-and-Pay basis and hereby request for acquisition of power under IPPR-2005 (Interim
Power Procurement Regulation-2005).The required documents as mention in your above
referred letter at Sr No 2 (i, ii, & iii) are as under:-
i. Authorization from the Board of Directors to Purchase electricity from a
generation company through mutual contract.
The Board of Directors (BOD) of HESCO has approved in its 71th BOD meeting held on 06.09.2011 (Annex-A).
Power of Attorney in favour of the signatory of the PAR to file the PAR with
NEPRA for. approval (each page of the PAR shall be initialed by the person
having authorization of the Board to sign such PAR).
As per requirement of NEPRA the case is submitted with the signature of undersigned and as authorized by HESCO BOD in 71th meeting.
iii. In case of gas based projects, the approval of the concerned gas supplier to
use the gas for electricity generation and sale thereof to the DISCO / TRANSCO.
Gas load approved vide SSGC letter No. Sales/PG-13/05 Dated 05.08.2005 Copy attached (Annex-B), applied by the Company for NOC to sale surplus power to HESCO on Dated 23.04.2012 Attached (Annex-C).
The information as per part-II of Power Acquisition Permission Clause-3 (3) is
HESCO
cat",c7A/i esf-
s'Ni cv
as under please:-
f..17
Power Auftns.fion Case of SPP
ilt;, WIC
a). The Firm's capacity is 2.0 MW.
b). Tyne of fuel is t.itur2l r4as
c). Expected time for commercial operation of generation facility is
(06) months from the signing of power Purchase Agreement.
d). The HESCO demand of 2.0 MW will be met through proposed
procurement of power.
e). The interconnectivity setup of 11 KV voltages will be sole discretion and
responsibility of the power purchaser at its own cost and risk. Cost of
synchronization arrangement will be born by the power producer.
2. Information as per Clause-3 (4) of IPPR-2005is attached on the forms under schedule-I.
3. Copy of PPA between HESCO and M/s Salim Yarn (Pvt) Ltd as per Clause-5
(1) (Power Acquisition Contract) is attached (Annex-D).
4. Tariff
The Tariff was introduced by CPPA as per NEPRA memo No. NEPRA/ R/LAC-
60/7320 Dated 28.04.2008 in which NEPRA allowed DISCOs to directly
purchase power less than 50 MW from captive power producers CPPs on
mutually agreed Tariff with fixed cost component at Rs. 1.53 / KWH and
reference gas cost component at Rs. 2.89 / KWI-1.•The fuel cost component is
considered as pass through item and it is being adjusted in gas price during the
billing cycle according to the formula.
GCC rev
Where:
GCC rev
GP rev
GP ref
GCC ref
GP (rev) / GP (ref)* GCC (ref)
Gas cost component applicable for billing cycle
Revised gas price excluding general sales tax applicable for the billing cycle as notified by OGRA
Reference gas price i.e Rs. 238.38/MMBTU(HHV)
Rs. 2.89/KWH
Power ACetesillon Case of SPP
r1(17
HES derabad er
5. HESCO is of the view that Tariff determination is the prerogative of NEPRA in this case however if GPRA has no objection on the Tariff,
approved by the CPPA for CPPs / SPPs (Small Power Producer) as
mentioned above. HESCO can adopt and own the Tariff.
HESCO will appreciate if permission for power acquisition is allowed
alongwith endorsement of Tariff adopted by CPPA under SPP policy or Tariff
determination be made by NEPRA as the case may be.
D.A/As above.
CC To:-
1. Chief Engineer (P&E) HESCO Hyderabad for information. 2. General Manager Technical HESCO Hyderabad 3. Finance Director HESCO Hyderabad. - Master file
Or 0118 Powor Aaluslt■pn Case of SPP
HESCO HYDERABAD ELECTRIC SUPPLY COMPANY LTD
4. Haji Muhammad Yaqoob (Director BOD HESCO) Aiwan-e-Tijarat Road Saddar, Hyderabad (Ph: 022-2784972 / 03002015280) (2784977 Fax)
5. Mr. Mehmood Nawaz Shah .(Director BOD HESCO).Bungalow No.1-A Block-C Unit No.2, Latifabad, Hyderabad (Ph: 022-3863324 / 03332602962) (022-2783988)
6. Dr. Asad Sayeed
Executive Director, Collective for Social Sciences Research (CSSR) (Director BOD HESCO), 173-1, Block-2 PECHS, Karachi — 75400 (Ph: 021-34551482) (021-34547532—Fax) •
7. Mr. Goharullah
President, Hyderabad Chamber of Commerce & Industry (Director BOD HESCO), Aiwan-e-Tijarat Road, Saddar, Hyderabad Chairman, Fateh Group. A/4, SITE Hyderabad (Ph: 022-2784973-5 / 3880700 — 022-3880514 Fax)
8. Mr. Muhammad Zargham Eshaq Khan Joint Secretary (Power), (Director BOD HESCO) Ministry of Water & Power Government of Pakistan, Islamabad (Ph: 051-9203087 — 051-9214273 Fax)
Subject: MINUTES OF 713T MEETING OF BOARD OF DIRECTORS OF HESCO HELD
ON 06 SEPTEMBER 2011 AT HYDERABAD
Kindly find enclosed Minutes of 71" meeting of Board of Directors of Hyderabad Electric Supply Compahy Limited held on 06th September 2011, at Hyderabad y sign the Chairman, BOD, for your information, please.
D A/As 'above
Nawab Muhammad Hussain Talpur Chairman BOD, B-73, Naseem Nagar-2 Qasimabad, Hyderabad (Ph: 0301-3627112 / 0345-2177048)
2. Mr. Muzaffar All Abbasi Chief Executive Officer HESCO Hyderabad
3. Mr. Rafique Dawood
Chairman, BRR Guardian Modaraba, (Director BOD HESCO) 1500-A, Saima Trade Towers; I. I. Chundrigar Road, Karachi (Ph: 021-111329663) (021-2271912-3 — Fax)
1.
Tel: 9260256 Fax 9260361 PBX 9260161-9260211
NO CEO/HESCO/CS/Min-71" BOD Meet/ 68
(WAPDA OFFICES COMPLEX HUSSAINABAD HYDERABAD)
OFFICE OF THE CHIEF EXECUTIVE OFFICER
HESCO HYDERABAD
0 Sept 2011
Copy to: 1 2. 3. 4. 5. 6 7. 8.
(MUR MMAD BACHAL LEG OMPANY SECRETARY HESCO HYDERABAD
Chief Technical Officer, HESCO Hyderabag. Chief Operating Officer, HESCO Hyderabad. Chief Commercial Officer, HESCO Hyderabad. Chief Engineer (P&E) HESCO Hyderabad. Chief Engineer (Development), HESCO Hyderabad. Admn & HR Director, HESCO Hyderabad. Finance Director, HESCO Hyderabad.
(MIS) WCC HESCO Hyderabad. Manager (HRM) /
(Admn) / (Comm) / (TM&CM) / (MM) / (Civil)/ (S8,1) (CM&O) / (Tech) GSO/
Master File.
Jf, nn9
MINUTES OF 715T BOD MEETING OF HYDERABAD ELECTRIC SUPPLY
• COMPANY LIMITED HELD ON 6 SEPTEMBER 2011 AT HYDERABAD PRESENT
1. f\1%.^,,ab Muhammad Hussain Talpur
2. Mr. Muzaffar All Abbasi
3. Mr. Rafique Dawood
4. Mr. Goharullah
5. Haji Muhammad Yacjoob
6. Mr: Muhammad Bachal Leghari
Chairman
Director / CEO
Director
Director
Director
Company Secretary
Meeting commenced with recitation from Holy Quran. CEO welcomed the
Chairman and Members of the Board. Company Secretary informed the Members that
Dr. Asad Saeed and Mr. Mehmood Nawaz Shah, Honourable Members of the Board
could not attend the meeting due to their preoccupation whereas Mr. Muhammad
Zargham Eshaq Khan informed telephonically that he would not be able to attend the
meeting due to his prior commitments. The Board granted leave of absence to the Honourable Members.
Before diScussion on agenda of the meeting, a letter dated 5th September
2011 of Mr. Mehmood Nawaz Shah for Honourable Members of the Board was placed
before the Board. In this letter the Honourable. Member observed that according to
Companies Ordinance proper notice of 'the meeting needs to be given with agehda and
discussion papers. He observed that day and time of Board meeting has already been
fixed on first Wednesday every month at 11:00 A.M, but there was no meeting held in
August due to Ramadan. Furthermore the weather and current scenario of rains,
breakdowns etc. necessitated meeting in September as per schedule and there was
whole month of August to send notices to the Boards Members for the meetin g, but
suddenly a meeting is being held on Tuesday without prope notice. , to discharge responsibilities as a Member of the Board, the Members
r
try to bee sr try to on Wednesday, but these abrupt changes when crucial issues need to be discussed make
them difficult to cope with and that this lack of planning is pushing the Committees of the
Board to hold meetings in a haphazard manner. He observed that due to technical expediency pui-
chase of Transformers is mostly recommended but as a member of
Technical Committee he would like the Board to discuss on tendering process and
desired to minute that the technical evaluation process needs to be more elaborate
because only emphasizing the quality of the product is not enough and that in his view
in Chair
Jol. 010
for the sake of transparency, the tendering process should be in black and white and procedure strictly adhered to.
CEO submitted that due to continuous torrential rains in the command area
01 HESCO is facing acute shortage of Transformers because of damage of a large
number of Transformers which necessitated the present meeting at short notice for the
sake of procurement of Transformers so as to rehabilitate and restore the supply to
affected areas. The Chairman observed that the Board may help the management in such a crucial and emergent situation.
The Board then deliberated on the agenda of the meeting as under:-
Agenda -1 To review and confirm minutes of 70th BOD meetin held on 22.7.2011
Minutes of 70th BOD meeting held on 22.07.2011 were placed before the
Board for review and confirmation. Mr. Goharullah observed that it was discussed in the previous Meeting that
internal audit would give briefing to the Board, but this has not
been incorporated in the Minutes. In fact, the observation of the Board regarding briefing
by Internal Audit in next BOD meeting stood .included in the minutes, but perhaps the
Honourable Member could not go through the minutes for want of time as the meeting
minutes. was held at a short notice and there was little time for the Members to go through the
Mr. Rafique Dawood observed that he was not present in the meeting
therefore he could not comment. He, however, enquired about appointment of Corporate
Lawyer, as per minutes of the meeting at page-6. CEO informed that a Karachi based
Corporate Lawyer has been engaged who is also Corporate Lawyer of KESC. The
Honourable Member desired to provide copy of letter of appointment of Corporate
Lawyer to the Board. Mr. Rafique Dawood further desired to submit the status of
purchase of power from N-CPPs / SPPs so far approved by the Board.
The Chairman informed that he has just gone through the minutes and observed that the same are recorded appropriately.
Decision
After above discussion the Board confirmed and approved the minutes unanimously.
Agenda -2 To consider and a • •
rove su • g I and installation of Hardware of Aerial Bundled Cable and its testing and commissioning dismantlement of
Bundle L.T S stem its safe handling and trans g ortation to HESCO Store under World Bank Financing
and
Proposal for supply and installation of (ABC) and its testin Hardware of Aerial Bundled Cable
g and commissioning, dismantling of existing L.T system, its safe handling and transportation to HESCO Store under World Bank Financing or Electricity
Distribution and Transmission Improvement Program was placed before the Board for
approval. It was submitted that World Bank has funded US $ 20.00 million for installation
of Aerial Bundled Cable on 39 Feeders of .Hyderabad City alongwith rehabilitation /
bifurcation of these Feeders under Energy Loss Reduction (ELR) Project. The Board was informed that with the i
mplementation of this project there will be sav of energy, to the extent of 132.2 MKwh / per year and in terms of amount the saving wiing
ll be Rs.997.786 million / per year.
It was submitted that tenders in this regard were opened on 31.05.2011
wherein 02 participants M/S Perwaiz Trading Corporation (Pvt) Ltd. Karachi (on behalf of
M/S Tyco Electronics, .Gerriany) and M/S SF Engineering Services Karachi (on behalf of
Rs.986,699841.15 respectively. M/S • Resul Portugal) offered their prices in Pak Rs. 1,439730863.83 and
Haji Muhammad Yacloob observed that since it is a big tender and there is huge difference in the offered prices, therefore, the tend
re-called. Rafique Dawood observed that them
anagement should consult KESC er should be so far as the
Mr.
prices are concerned as the KESC has already installed this Cable.
CEO informed that this is a World Bank funded project and as per
guidelines of World Bank there is no negotiation. Moreover there is no possibility of less
rate in case of re-tendering. Whereas the closing date of the loan is June 2012 and re-
bidding process will take another 03 months and lower prices are not guaranteed. Mr.
Goharullah Observed that it is a big tender and in view of observation of Mr.
Nawaz Shah, Honourable Member of the Board, in para 4 of his letter dated 05.09.2011 Mehmood
the item may be deferred and placed before the Board when all the members including
Mr. Mehmood Nawaz Shah are available for meeting. He observed that meeting on this
particular item may be held within 10 days, so that the matter may be settled amicably.
Haji Muhammad Yacioob suggested that Members of the Board may also check the
jos 012
prices individually at their level and for that purpose Mr. Rafique Dawood was assigned to check the prices at Karachi.
Decision
In view of above discussions the Board decided to defer the item and hold
meeting of the Board within next 10 days on this particular item for discussion by all the Members including Mr. Mehmood Nawaz Shah.
Agenda -3 To consider and a rove Debarment Procedure for HESCO
Proposed Debarment Procedure for HESCO to be posted on HESCO
Website as per requirement of the WOrld Bank, was placed before the Board for
approval. It was submitted that the purpose of Debarment Process is to develop,
standardized policies and procedures and to deal with the mal-practiCes in procurement
activities on the part of the contractor e.g. fraudulent, corrupt practices including collusive
bidding etc. It is further submitted that after thorough examination of the Rules and
Regulations of PPRA and Procurement Guidelines of World Bank, PEPCO had prepared
the DebarMent Procedure which has been approved by MD PEPCO for Website posting.
Decision
. The Board considered the proposal and approved Debarment Procedure of
HESCO for posting on HESCO Website as per requirement of the World Bank.
Agenda-4 To consider and approve procurement of Construction Equipment (Vehicles) against Package No.PEPC0-01-2010, Lot-II under ADB Loan No.2438-PAK Tranche-I
• Proposal of procurement of 120 tons Truck Mounted Crane and 30 Tons
Truck Mounted Cranes under Contract No.ADB-PEPCO-01-2010 (Lot-II) under ADB Loan No.2438-PAK (Tranche-I) for Distribution, Enhancement Investment Program, was
placed before the Board for approval. It was submitted that PEPCO on behalf of
Distribution Companies, acting as Procurement Agent, invited sealed bids from eligible
bidders for procurement of Construction Equipment and Vehicles in 06 Lots and as per
guidelines of ADB contracts have been signed with 08 Distribution Companies separately against their individual share.
It was further submitted that in the light of approval of ADB and MDP
PEPCO Notice of Awards (NOA) were issued to lowest responsive bidders i.e. M/S
nt 013
I
,t?
Automobile Corporation of Pakistan Karachi, for Lot-I & III and to M/S Xuzhou Construction Machinery Group China through M/S TranswOrld Ass
on 25.02.2011. The case was placed before the Board in its
69'ociates Lahore for Lot-
meeting wherein h herein the Ream' was pleased to approve entering e into contract agreement for procurement of
Equipment under Lots-I & Ill, whereas for Lot-II BOD desired to put up comparison of rate for 120 and 30 Tons Truck Mounted Cranes.
It was submitted that MD PEPCO has informed that ADB on the special
request of PEPCO had allowed procurement of Construction Equipment by making
necessary .changes in loan agreement with Government of Pakistan and that this is one
time facility for DISCOs for procurement of Construction Equipment under ADB Loan and
if it is not availed due to any reason it would be set-back for the DISCOs. Furthermore if
this procurement is not materialized despite issuance of NOA, it will lead to le al g complications apart from source of embarrassment for GOP with ADB.
The Board was informed that 120 tons Crane will be used for
transportation/ installation of Power Transformers of 10/13 MVA to 40 MVA. rating,
whereas 30 tons Crane will be used for erection of Grid Station Equipment and Towers /
Steel Poles of Transmission Line. Presently this is being done manually and HESCO has to hire Cranes at Rs.5,90,000/- and Rs.3,30,000/- at previous two occasions installation of 20 / 26 MVA Power Transformers at 132 KV Dadu Grid Station and 1 for
0/13 MVA Power Transformer at Bulri Shah Karim Grid Station.
It was submitted that NTDC is also procuring the Truck Mounted Cranes
under ADB funding and the comparisbn of HESCO lowest tendered rates against NTDC lowest tendered rates, as per their tender opened on
08.03.2011 are as.under:-
The management has recommended procurenient of 01 No.120 tons Truck
Mounted Crane and 01 No.30 tons Truck Mounted Crane. at the cost of US$ 1,282,951 (PKR 109,948,900). The Board was informed that Technical Committee of the Board has
cleared the proposal and that most of the DISCOS have already signed the contract
014
agreements for Construction Equipment including the Truck Mounted Cranes after getting approval from their BODs.
Decision
. In view of clearance of proposal by Technical Committee of the Board, the
Board considered the proposal and ratified issuance of Notice of Award (NOA) and
accorded approval for signing of contract agreement with M/S Xuzhou Construction
Machinery Group China through M/S Transworld Associates Lahore, for procurement of
01 No. 120 tons Truck Mounted Crane and 01 No. 30 Tons Truck Mounted Crane under
Lot-II at the cost of US$ 1,282,951 (PKR 109,948,900)..
Agenda-5 Consensus and a royal of BOO re ardin issuance of LOI PPA and Connectivl
ort from Technical Committee for 2 MW Gas Based Power offered by M/S Salim Yarn Mills Pvt Limited Kotri
0
Re •
' It was submitted that M/S Salim Yarn Mills (Pvt) Limited Kotri, have offered
through Chief Operating Officer, Central Power Purchase Agency (CPPA), Lahore, sale
of 02 MW Gas based power to HESCO from its generation facility situated at Kotri
whereupon CPPA, vide their letter No.CPPA/DT-III/F-150/5999-6001 dated 12.07.2011,
intimated that HESCO may consider / study the case and if found feasible and meeting
the requirement of approved Captive Power Policy, may convey its willingness for
purchase of the offered power. Accordingly HESCO issued LOI vide No.HESCO/CE/
(P&E)/DM(SPP)/6632-35 dated 27.08.2011 to M/S Salim Yarn Mills (Pvt) Limited Kotri, for purchase- of 02 MW Gas based power from them.
Haji Muhammad Yacioob observed whether there will be possibility of loss
to the Company if seller and representative of purchaser join hands. CEO informed that
there are different departments of the Company e.g. Grid System, M&T etc. for recording
of readings and checks at different stages and there is no possibility of loss.. Haji
Muhammad yacioob observed that HESCO should ensure check arid balance. CEO
informed that payment for the power so purchased will be made on the basis of
consumption of Gas commensurating with supply of power and bill thereof.
Technical
Yarn Mills
Proposal regarding issuance of LOI,
Committee for purchase of 02 MW Gas
(Pvt) Limited Kotri, was placed before the
PPA and Connectivity Report from
based power offered by M/S Salim
Board for consensus and approval.
Jri; 015
F7k Decision
The Board considered theproposal and accorded approval for issuance of
(Pvt) Limited Kotri purchase of 02 MW Gas based power from M/S Salim Yarn
Agenda-6 Consensus and a • •
Re
Ba asse Limited
Proposal regarding issuance of LOI, PPA and
from Connectivit Technical Committee for purchase of 9.0 MW Bagasse based power y Report
offered by M/S Tando Allahyar Sugar Mills (Pvt) Limited Tando Allahyar, was place for consensus and approval. d before the Board
It was submitted that M/S Tando Allahyar Sugar Mills(P vt) Limited Tando Allahyar„ vide their letter dated 11.08.2011 have offered to HESCO surplus 9,0 MW
Bagasse based power during Cane crushing season and have requested to issue
in their favour, whereupon the will file application for a Generation licence with NEPR
LOIA. Moreover, they have also requested the Chief Executive Officer-II (CPpA) Lahore for the
same vide their letter dated 11.08.2011. HESCO considered the offer of the Sugar Mill
and issued Letter of Intent to Viem vide letter No.HESCO/CE(P&E)/DM(SP)/6454-57
Crushing season.
dated 17.08.2011 for purdhase of surplus 9.0 MW power at 11 KV level during their Cane
Decision
The Board considered the LOI and si gning
proposal and accorded approval for issuance of of PPA for purchase of surplus 9.0 • level from Tando Allahyar Sugar MW Bagasse based power at 11 KV
Crushing season. Mills (Pvt) Limited Tando Allahyar, during Cane
Agenda-7 To consider and a ..rove rocurement 200 KVA of Distribution 672/2011 o Transformers
a• ainst Tender No. ened on 12.07.2011
Proposal for procurement of 400 Nos. Distribution Transformers of 200
KVA capacity against Tender No.672/2011 opened on 12.07.2011, was placed before
pproval. It was submitted that in the light of annual requirement of HESCO
and SEPCO tenders for procurement of 400 NoS. Distribution Transformers of 200 KVA
Connectivi royal of BOD re ort fro m Technics Based Power offered b
Tando Allah ar NUS Tando Allah ardin issuance of LOI PPA and
I Committee for 9.0 MW ar Su. ar Mills Pvt
JCI 016
were invited in 03 lots i.e. Lot-I 200 Nos. Lot-II 100 Nos. & Lot-Ill 100 Nos., wherein
following firms participated in the tenders and offered their rates as under:-
Sr. No. Name of Bidder Lot-I Lot-li Lot-III 1. M/S i Siemens Karachi Rs.605,000 Rs.605,000 Rs.605,000 2. I M/S PEL Lahore
I Rs.580,165 Rs.580,165 3. M/S Elmetec Lahore
Rs.580,165 4. M/S Pan Power Lahore Rs.581.950 5.
i M/S Transfo Power Lahore
Rs.581.950 6. M/S J.F Ind (Pvt) Ltd. Lahore Rs.579.600
Accordingly M/S J.F Ind: (Pvt) Ltd. Lahore, emerged lowest in lot-I, M/S
Elmetec Lahore in Lot-II and M/S Pak Elektron Ltd. (PEL) Lahore in lot-III. It was
submitted that the 03 lowest firms were requested to match the lowest•prices quoted by
M/S J.F Ind: (Pvt) Ltd. in Lot-I and intimate their manufacturing capability and delivery
schedule, as the Transformers are urgently required due to Monsoon season,
whereupon M/S J.F Ind: (Pvt) Ltd. Lahore, responded to supply the requisite
Transformers within stipulated period and MIS Elmetec Lahore intimated to supply 12%
quantity within 30 days from the issuance of P.O at their quoted rates, whereas M/S PEL
Lahore, did not respond. Therefore, the 3rd lowest M/S Transfer Power Lahore, were contacted who consented to supply 1st Lot of 75 No. 200 KVA Transformers in 10 days and 2nd Lot of 25 No. Transformers in next 10 days and revised their rates as per the
rates fixed by PEPCO and communicated by GM (C& M) PEPCO Lahore, vide letter
No.2479-2503 dated 02.05.2011, i.e. Rs.580,165 per unit. The comparison of rates
shows that the lowest quoted rate of Rs.580,165/- is at par with last purchase rates of
HESCO and all other DISCOs during 5/2011.
The management, therefore, suggested reduction of quantity in Lot-I from
200 to 100 No. and equal distribution of the Transformers among 04 lowest bidders.
Accordingly following proposal worked out by the management was placed before the Board for approval:-
S.No. Name of Firm Lot No. Qty: Unit Rate Amount 1 2.
M/S J.F Ind (Pvt) Ltd. Lahore 100 Rs.579,600 Rs.57,960,000 M/S PEL Lahore 100 Rs.580,165 Rs.58,016,500 3. M/S Transfo Power Lahore 100 Rs.580,165 . Rs.58,016,500 4 M/S Elmetec Lahore III 100 Rs.580,165 Rs.58,016,500 Rs.232,009,500 Total:-
nil
It was submitted that the proposal has been cleared and recommended by the Technical Committee of the Board for approval.
Decision
• The Board considered the proposal and accorded approval for issuing of
Purchase Order for supply of 400 No. Distribution Transformers of 200 KVA in 03 Lots at
the total cost amounting to Rs.232,009,500 (exclusive of GST) as per above mentioned purchase proposal.
The Board further authorized the CEO to place variation / change order at the same rate up to the extent of 100% as per requirement.
Agenda-8 To consider and a rove rocurement of Distribution Transformers 100 KVA a ainst Tender No.671/2011 oseried on 12.07.2011
Proposal for procurement of 500 No. Distribution Transformers of 100 KVA capacity against Tender No.671/2011 opened on 12.07.2011, was placed before the
Board for approval. It was submitted that the tenders for procurement of 500 Nos.
Distribution Transformers of 100 KVA were invited in 03 lots containing 200 Nos. in Lot-I
& 100 Nos. in each Lot-II & Ill., wherein 05 firms participated in the tenders and their rates as under- offered
Sr. No. Name of Bidder Lot-I
Rs.363,465 Lot-II
M/S Transfab Lahore
M/S Hammad Lahore
Lot-III
Rs.363,465
Rs.365,000
1111111111111111.11 Rs.365,000 NMI
Accordingly M/S Transfab Lahore, emerged lowest in lot-I, M/S ma Engineering Lahore in
Lot-II and MIS Pak Elektron Ltd. (PEL) Lahore in lot-III.H alit was
d
submitted that due to emergent situation created by Monsoon rains and shortage of
Transformers all the 03 lowest firms were contacted for early supply of the Transformers
whereupon only M/S Hammad Lahore responded to supply Transformers up to
30.9.2011, whereas M/S Transfab and M/S PEL did not respond. The comparison of
rates shows .that the lowest quoted rate of Rs.363,465/- is at par with last purchase rates of HESCO in tenders during 5/2011.
M/S Siemens Karachi
M/S PEL Lahore
M/S Elmetech Lahore
Rs.365,000 MEM Rs.365,000
Rs.363,465
The management, therefore, suggested to reduce quantity in Lot-I from 200
to 150 No. and to enhance the quantity in Lot-II from 150 to 200 and worked out the
purchase proposal for approval of the Board as under:-
I S.No. Name of Firm Lot No. Qty: Unit Rate Amount 1. M/S Transfab Lahore 150 Nos. Rs.363,465 Rs.54,519,750 2. M/S Hammad Lahore 200 Nos. Rs.363,465 Rs.72,693,000 3 M/S PEL Lahore III 150 No. Rs.363,465 Rs.54,519,750 Total:- Rs.181,732,500 _
' The Board observed that the proposal has been cleared and recommended
by the Technical Committee of the Board.
Decision
The Board in the light of recommendation of Technical Committee
considered the proposal and accorded approval for issuing of Purchase Order for supply
of 500 No. Distribution Transformers of 100 KVA in 03. Lots at the total cost amounting to
Rs.181,732,500 (exclusive of GST) as per above mentioned purchase proposal.
The Board further authorized the CEO to place variation / change order at
the same rate up to the extent of 100% as per requirement.
Agenda-9 To consider and approve procurement of Distribution Transformers 25 KVA against Tender No.669/2011 opened on 12.07.2011
Proposal for procurement of 1,000 No. Distribution Transformers of 25 KVA
capacity against Tender No.669/2011 opened on 12.07.2011, was placed before the
Board for approval. It was submitted that the tenders for procurement of 1,000 Nos.
Distribution Transformers of 25 KVA were invited in 04 Lots containing 300 Nos. each in
Lot-I & II and 200 Nos. each in Lot-III & IV., wherein 06 firms participated in the tenders
and offered their rates as under:-
S.No. Name of Bidder Lot-I Lot-II Lot-III Lot-IV 1. M/S . Siemens Karachi
Rs.177,300 Rs.177,300 Rs.177,300 Rs.177,300 2. M/S PEL Lahore -- Rs.168,435 -- 3. M/S Elmetec Lahore -- -- -- _ Rs.168,435
--
4. M/S Pan Power Lahore
- -- Rs.168,435 -
5. M/S Transfab Power Lahore
Rs.168,435 -- -- --
6. M/S J.F Ind: Lahore Rs.168,250 -- --
Jr 1119
Accordingly M/S J.F Ind: (Pvt) Ltd. Lahore, emerged lowest in lot-I at
Rs.168,250, whereas M/S Pak Elektron Ltd. (PEL) Lahore, M/S Pan Power Lahorp and M/S Flmetec Lohorc..
,. emerged lowest each at Rs.168,435 in lots-II, Ill & IV. It was submitted that the prices quoted in Lot-I by M/S J.F Ind: Lahore, were lesser than the
price of firms in remaining Lots who have quoted prices fixed by Authority i.e. Rs.168,435. The lowest firms for the remaining Lots were, the
contacted to match the prices quoted by M/S J.F Ind: Lahore in Lot-I, but all the firms refused to rri atch /
reduce their prices. It was submitted that th.e management is in dire need of 25 KVA
Transformers for village electrification and other deposit works. It was therefore,
suggested to distribute the quantity of Lot-I between M/S J.F Ind: (Pvt) Ltd. Lahore and
M/S Transfo Power Lahore, owing to the fact that the former is new entrant and does not have the proto-
type'approval as well as limited manufacturing capability and the late r has
matched the lowest price in this Lot i.e. Lot-I. The comparison of rates shows that the
other DISCOS during 6/2011.
lowest quoted rate of Rs.168,435/- is at par with last purchase rates of HESCO and all
The management, therefore, worked out the purchase' proposal of 1,000 No. Distribution TranSformers of 25 KVA for approval of the Board as and
It was submitted that the purchaseproposal has been cleared and recommended by the Technical Committee to the Board for approval.
• Decision
The Board in the light of recommendation of Technical Committee
considered the proposal and accorded approval for issuing of Purchase Order
of 1,000 Nos. Distribution Transformers of 25 KVA in 04 Lots at the total cost for supply
amounting to Rs.168,379,500 (exclusive of GST) as per above mentioned purchase proposal.
Jr,. (120
Description
Total Repair Cost Deduct Credit of dismantled material Net repair cost
Total Repair Cost Deduct Credit of dismantled material Net repair cost Total Repair Cost Deduct Credit of dismantled material Net repair cost
Total Repair Cost Deduct Credit of dismantled material Net repair cost
Capacity of Transformers
100 KVA
50 KVA
25 KVA
M/s. Power Tech Ind
Kotri 97 598 - 6,700
M/s. Ajmer Electric Engg Works (Pvt.)
Ltd H derabad
- 7,800 88,837
M/s. Swat Ind Lahore
101,264
- 7,000 90,898
127,392 - 8,200
116,729 - 9,500
81,037 94,264 133,335 - 8,400
119,192 186021 - 15,350 - 19,000
170,671 159,586 266 837 - 25600 - 32800
178,586 107,229
189,324 309,820 - 26450
124,935 205,424 - 16,100
241,237 283,370
in: 021
• The Board further authorized the CEO to place variation / change order at
the same rate up to the extent of 100% as per requirement.
Agenda-10 To consider and a rove reclamation of Distribution Dama.ed
Transformers h rate contract with M/S A.Mer H derabad against Tender opened on 25.07.2011
Proposal for rate contract with M/S Ajmer Engineering Works (Pvt) Limited
Hyderabad, for reclamation of damaged Distribution Transformers against Tender
opened on 25.07.2011, was placed before the Board for approval. It was submitted that
the rate contract for the reclamation of damaged 100 & 200 KVA Distribution
Transformers was executed with M/S Ajmer Engineering Works (Pvt) Limited Hyderabad,
on 08.06.2010, extendable with mutual consent. The rate contract expired on 07.06.2011
and in the light of successful completion of conditions of contract, proposal for extension
in the rate contract was placed before the BOD in its 69th meeting held on 30.0
6.2011.However, in order to maintain the transparency and healthy competition, the Board directed to float tenders.
Accordingly tenders were invited through respective newspapers wherein
03 firms i.e. M/S Power Tech Ind: Kotri, M/S Ajmer 'Engineering Works (Pvt) Limited
Hyderabad & M/S Sawat Industries Lahore, participated in the tender and quoted their rates as under:-
II II
throw •
Capacity of Transformers
25 KVA
Sr.
I No. Quoted Rates by M/s Ajmer Electric Engg
Works (Pvt.) Ltd H dernbad
111111113111.111111ramain
- 7,800 As per M&T report
Net repair cost will be less than tender rate
107,229
Revised Rates
Mum 116.729
As per M&T report
Net repair cost will be less than tender rate
159,586
As per M&T report
Net repair cost will he less than tender rate
235,943
As per M&T report
Net repair cost will be less than tender rate
- 9,500
107,229
178,586
- 19,000
159,586
268,743
- 32800
235,943
1122
Two way Transportation Charges for Regional Store
SEPCO Rohri
M/S Ajmer Engineering Works (Pvt) Limited Hyderabad; emerged lowest
bidder in the tender. The firm was requested to submit detailed analysis / reasonability of
rates and their capability for repairing of the damaged Transformers, whereupon
the firm vide their letter dotc-d 10.07.2011, intimated their capability to reclaim 200 No
Transformers of various ratings per month and voluntarily revised / reduced their with same credit of dismantled material
under, (including transportation charges): rates
Description
Total Repair Cost
Deduct Credit of dismantled material
Net repair cost
Total Repair Cost
Deduct Credit of dist-handed material
Deduct Credit ordismantlecl material
Total Repair Cost
Deduct Credit of dismantled material
3 100 KVA
200 KVA
The firm however, informed that in case HESCO is not interested in fixed
credit and is in favour of previous rate contract and in accordance with M&T report then
the firm is ready at the previous rates offered during renewal of rate contract which was
recommended by the Technical Committee as well. Moreover, transportation from
Regional Store HESCO Hyderabad and Nawabshah would be free of cost and will be
charged only for Regional Store SEPCO Rohri (two way). The revised rates and
transportation charges in case of Regional Store SEPCO Rohri, are as under:-
Capacity of Transformers
100 KVA
200 KVA
Quantity
50 Nos.
50 Nos.
Amount (Rs.)
6,938,400
11,052,850
17,991,250 TOTAL:
Sr. Capacity of No. Transformers
1 25 KVA
2 50 KVA 3 100 KVA
4 200 KVA
Ex-Post Facto A
Description
Total Repair Cost
Total Repair Cost
Total Repair Cost
Total Repair Cost
Revised Rates
Rs: 67,578/-
Rs: 97,193/-
Rs: 138,768/-
Rs: 221,057/-
Two way Transportation
Charges for R/S/ SEPCO Rohri
Rs 3,500
Rs 4,000 Rs 4,400
Rs 5,000
. • It was submitted that the annual requirement of HESCO / SEPCO in
respect of reclaimed Transformers of various ratings is around 2500 Nos. and due to
non-availability of. reclaimed Transformers, now Transformers have to be issued.
Whereas, by entering into rate running contract with M/S Ajmer Engineering Works (Pvt)
Limited Hyderabad, there will be saving of new Transformers and millions of rupees. It
was further submitted that due to emergent situation created by heavy rains and flood
and resultantly burning of Transformers warranted to get 50 Nos. each 100 KVA & 200
KVA Transformers reclaimed from the firm, during last one month at the same rates in
anticipation of approval of BOD, as the proposal has already been recommended by
Technical Committee of the Board.
In the light of above the management recommended one year rate contract for
reclamation of 25 KVA, 50 KVA, 100 KVA & 200 KVA damaged Distribution
Transformers with M/S Ajmer Engineering Works (Pvt) Limited Hyderabad, for approval
of the Board and ex-post-facto approval for reclamation of 50 Nos. each 100 KVA •& 200
KVA damaged Transformers at the same rates as under:-
Rate Contract
Note:- Above rates are exclusive of GST and credit of dismantled material.
As far the credit of dismantled material, it will be as per joint inspection
report with M&T at the following rates and the firm will also reclaim the Transformers
having core up to 90% and above at the same rate:-
A , 023
Sr. No.
11111111 Description
Credit of Co II er
Credit of Dismantled bushing Rod (LT) 25. 50 k K VA
3 Credit of Dismantled bushing Rod (HT) 25. 50 & 100 KVA
Credit of Dismantled bushinQ Rod LT) .200 KVA
Rs 250/- each Credit of Dismantled buskin Rod HT) 200
Credit offered by M/s. Amer
Rs 400/- Pcr I - cLICJI
Rs. I 40/- each
Rs 140/- each
It was submitted that the purchase proposal has been cleared and recommended by the Technical Committee tO the Board for approval.
On enquiry by Haji Muhammad Yaqoob, whether there is any such
arrangement with HESCO, CEO informed that there is no such facility with HESCO. The Board observed that it is the requirement of HESCO to get the Transformers
should be area wise.
reclaimed in such an emergent situation. CEO informed that monthly report about burnt / damaged
this report Transformers will be submitted to the Board. Haji Muhammad Yaqoob suggested that
Decision
The Board in the light of recommendation -of Technical Committee
considered the proposal and accorded approval to rate contract for reclamation of 25 KVA, 50 KVA, 100 KVA & 200 KVA damaged Distribution Transformer
s for one year with M/S Ajmer Engineering Works (Pvt) Limited Hyderabad, and ex-post-facto approval for
reclamation of 50 Nos. each 100 KVA & 200 KVA damaged Transformers already
reclaimed by the firm during last month in emergent situation at the same rates as mentioned above, exclusive of
GST,
Agenda-11 To consider and a
Power Transformers
• The item was deferred ' Technical Committee of the Board.
Agenda-12 To consider and a aut
opened on 18.05.2011
Technical Committee of the Board. The item was deferred for submitting in next BOD Meeting through
Jr.. 024
a ainst Tender No.T-87
rove rocurement of 132/11.5 KV 10/13 MVA o ened on 15.06.2010
for submitting in next BOO meeting through
oin & Bus Cou II •rove rocurement
of Switch ler Panel Lot-I II & Ill a
ainst Tender No.T-102 ear Incomin
rocurement of 132 KV ZM-30 T 3-Meter Le Extension 132 KV ZM-60 T Extension and Steel Poles T No.T-110 opened on 24.05.2011
Agenda-13 To consider and a • II rove • • •
• •
• e Tower & • e Tower & 3-Meter Le
e SP-A SP-D & SP-G a ainst Tender
The item was deferred for submitting in next BOD meeting through Technical Committee of the Board.
Agenda-14 To consider and a • 'rove • rocurement of ACSR L nx Conductor ACSR Cairo Conductor Groundin • Conductor 95mm AA Hawthron Conductor 600mm and AA Conductor Arbutus 400mm a•ainst Tender No.T-104 opened on 18.05.2011
Proposal for procurement of ACSR Lynx Conductor, ACSR Cairo
Conductor, Grounding Conductor and others as mentioned above against Tender No.T-
104 opened on 18.05.2011, was placed before the Board for approval. It was submitted
that the requisite Conductors are required to complete the works of respective 66 KV & 132 KV Grid Stations under 6th STG Program in the jurisdiction of HESCO and SEPCO.
Accordingly tenders were floated in 04 Lots through respective national and local newspapers vide NIT No.250.48-61 dated 30.04.2011 with opening date as 18.05.2011
and the same were published on 28.04.2011. In all 11 firms purchased the bidding
documents, but only following 08 firms out of 11 who purchased the tender, participated on due date and quoted their bids:-
1. M/S Ikram Corporation Lahore
2. M/S Atlas Cables Karachi
3. M/S White Collar Lahore
4. M/S Newage Cable Karachi
5. M/S Universal Cables Karachi
6. M/S Karim Trading Lahore
7. M/S Paras Trading Hyderabad
8. M/S Eagle Cable Lahore
The bids were got evaluated technically / commercially by Chief Engineer
(Design) NTDC Lahore, which were further evaluated by the HESCO Evaluation
Committee. Based on the comprehensive technical / commercial bid evaluation report of
NTDC and HESCO's own Evaluation Committee the management worked out Lot wise
purchase proposal for approval of the Board for placing purchase order upon the lowest evaluated bidders, as under:-
025 1,p
Description
ACSR Lynx Conductor
Lot-I M/s Atlas Cable Karachi Sr.
' No. 1
Total Amount Rs.
Lot-II M/s White Collar Lahore
Description
AASC Cairo Conductor
Lot-1111/1/s Eagle Cable Lahore Sr. No. Description 1
Lot-IV M/s Newage Cable Lahore
Lot-V M/s Newage Cable Lahore
Qty:Unit Rate Total KM Rs. 157 Amount (Rs.)
171978 (7)0 27,000,640.20 Total 27,000;640.20
Total 283000 00
131,312,000.00
131,312,000.00
Haji Muhammad Yagoob observed whether the proposed procurement is
necessary. CEO informed that the procurement of requisite Conductors is necessary for
construction of new Grid Stations as well as extension / conversion of existing 132 KV
and 66 KV Grid Stations. Mr. Rafique Dawood informed that he has checked the
proposal and the procurement is necessary. Haji Muhammad Yagoob observed that
where from funds for the proposed procurement will be available. CEO informed that the funds are 'available under PSDP for FY
2011-2012. The Honourable Member further
observed that the material received in Store is not being got checked by Members of the
Board, as already decided. He suggested that there should be office for Chairman and
Members of the Board where the Members can meet and discuss the respective matters.
Chairman• appreciated the idea of the Honourable Member and observed that such arrangement does not exist in other Companies presently.
f)26
radation of B&AOs AFSMs ofion of Assistant Mana C•rn uter BPS-18
er
Decision
The Board considered the proposal and authorized CEO to place Purchase Order upon lowest evaluated bidders, as under:-
Amount Rs
27;000,640.00 131,312,000.00 11,475,000.00 1,916,000.00
360 000.00 172,063,640.00
16% GST (Rs)
4,320,102.43 21,009 920.00 1 836 000.00
306,560.00 57,600.00
27,530,182.43
Lot No.
Name of firm
III IV V
M/s Atlas Cable Kar M/s White Collar Lhr M/s Ea le Cable Lhr: M/s Newa e Cable Lhr M/s Newa e Cable Lhr
Total Amount Rs
31,320,742.63 152,321,920.00 13,311 ,000.00
2 222,560.00 417,600.00
199,593,822.63
The duty and taxes are payable to GOP, any increase / decrease in the
existing tariff of duty / tax or any other tax if imposed or charged by Gcvernment of
Pakistan / Provincial Government, the same will be adjusted by Finance Director, HESCO on presentation of documentary evidence.
Agenda-15 Correction in Minutes of Meetin 6th July
2011
It was submitted that proposal for procurement of 132 KV Double Circuit
Steel Poles type SPA, SPD & SPG against tender No.T-82 opened on 10.6.2009 under 6th
STG Program-PSDP was placed before the Board for approval as agenda-4 in its 67th
BOD meeting' held on 04.05.2011. The Board was pleased to provisionally approve the
procurement and directed that in future this type of cases must be submitted through
Technical Committee of the Board. However, Minutes of the said meeting were issued,
but the decision of the Board was missing. Ex-post-facto approval / vetting was
subsequently obtained from the Technical Committee. The decision of the Board against agenda-4 of the said meeting is as under.
A enda-4 for 67th BOD issued on
Decision
In view of vetting by the Technical Committee of the Board, procurement of
132 KV Double Circuit Steel Poles type SPA, SPD & SPG against tender No.T-82 opened on 10.6.2009 under 6th STG Program-PSDP, stands approved.
Agenda-16 A S royal of BOD for formal orders of u Rbs BPS-17 to BPS-18 & .rom Corn u er BPS-17 to De u Mana er
The item was deferred for submitting in next BOD meeting through H.R Committee of the Board.
1 I 027
Agenda-17 To consider and a 'rove Tariff Petition for Financial Year 2011-2012
The item was deferred for submitting in next BOD meeting through Audit / Finance Committee of the Board
In the end CEO briefed the Members on Recovery and Losses of the Company for the FY 2
010-2011. He informed that Private Recovery during 1st quarter of the financial year was 74.8% against 82.5% during the 1
st quarter of the last year i.e. (-) 7.7% decrease. In the 2nd quarter it was improved as 89.8% against 86.1% during
corresponding quarter of the last year. He informed that the recovery was further improved during 3rd
quarter of the year as 94.2% against 87.9% of 3 quarter of the last year whereas in 4th quarter of the year it was even more as 98.6% against 94.3% of the 4th
.quarter of last financial year and in June 2011 it was 115.2% against 110.5% i.e. 4.3% increase in Private Recovery.
The CEO further informed that a good number of connections of WASA are
illegally running without Meters and inspite of efforts, the WASA authorities are reluctant
to get these connections regularized. The Honourable Member Mr. Rafique Dawood
suggested that the management should write and contact WASA's high authority for
regularization of these connections and in case of no response HESCO should proceed
legally against them. The Chairman seconded the suggestion of Honourable Member.
Mr. Goharullah observed that the Board be apprised of the Sub-Division
wise progress, so that the Chamber at its level may pursue the consumers of the areas
where there is less recovery and massive theft of electricit and the Board may y
appreciate those who have achieved the targets of losses and recovery.
There being no other business to be transacted, the meeting ended with vote of thanks to the chair.
(NAWAB MUHAMMAD HUSSAIN TALPUR) CHAIRMAN
BOARb OF DIRECTORS HESCO HYDERABAD
n2$
Ref SALES/PG-13/05 5 August 2005
SW Southern., Gas .Company- Limited 'SALES 8,1MAiIKETING DEPARTMENT : ST-4/B, Block-14,.81r.Snah Suleman
Near CivicCentre,-Gulshari-e4qbal, Karach1-75300. Tel 9231500 Fax : 9231580
M/S: SALIM YARINIMILLSSPV71i■TD.;. 603-604, 6Th Fi.00n;:tMcsottlIBUILOING #3,' SARWAR SIIAHEED.'.ROAD KARACHI.
Subject: GAS'CONNECIIONiPOR CAPTIVE POWER GENERATION PLOT,NQA.K4tils19:114;.x,y.E.;.Kcyrkr.--; ,..
We are pleased to ,inforriutni;that your-request for stipplydinatural gas for maximum - daily
r - •
off-take of 0.55 nirnCfdq18351(w) if 08 paig, pressure-for-Power Generation ,(for self-use
only) has been approved subjpct to the following, conditions:, - • - subject _ • ... .
I. It will be treated as a neiv- induitrial connection of 9 months (March to November) supply . .
basis as per prevalent policy. 2.
Gas will always be'supPliedOn "as and when available" basis and will be disconnected as and when SSGC faces shortfall 'in meeting the requirements of its regular consumers;;; 3. Dual-firing arrangiments will be made by-you to avoid loss of production as and when gas is not available.- -, -,..- -., _ -,- ,. - -- -, ..•, - ' . _ , - . . ' . 4. Price of gas used for -power generation will be fixed in due course by the Ministry of Petroleum & NatUral Resources in consultation with , Finance DiviSion, Government of . , , .
, , , . Pakistan pending which poWer tariff will be applied basis. 5. If Government decides.at;anYstage not to allow: supply of gas to subject power units,' the connections will be disconnected immediately. -
6. Gas supply to ,your unit for.PoWer Generation is subject to payment of cost of extension/ reinforcement of gas main, if required.
7. Gas supply to your unit for-Power Generation is Subject to completion and commissioning of gas distribution main/ reinforeement of gas main, if iequired. Also cost of the same will be borne by you.
8. SSGC is allowed by the Government to provide upto-I0 MMCFD additional load in a year for Captive Power Plants on first-come-first-served,basis.
9. As per the directiVes of Government of Pakistan, your gas connection for Power Generation may be disconnected if 70% export targets'are not met by you
tlssuring you of our best services, we remain,
Yours sincerely,
8 FAI'l'AZ MERCHAN+ DY. GENERAL MANAGER SALES DEPARTMENT '
P29
F L
Salim Yarn Mills (Pvt.) Limited
April 23, 2012
The General Manager (Sales) Sui Sothern Gas Company Limited Near Civic Center Karachi
SUBJECT : POWER TO fiFSfn
Dear Sir,
Kindly refer above subject,
As we have surplus power for sell to HESCO, therefore in accordance with the guidelines issued by MP & NR vide its letter on April 08, 2008 and the NEPRA advertisement in leading newspaper, we request you to please issue us No Objection Certificate (NOC) to this effect and oblige.
Thanking you,
Yours faithfully, FOR SALIM YARN MILLS PVT. LIMITED
603-604, 6th Floor, Lakson Building No. 3, Sarwar Shaheed Road, Karachi • Pakistan.
Tel : 5681084 (5 lines) Fax: (9221) 5682967 e-mail : [email protected] 9ON Certified
FED NAP r•"! Vc odor
j‘LicencL..No.22 sta pica fiydaraba4
3 0 AfiCi-21, POWER PURCHASE AGREEMENT
PAKI STAN 20 RS.
: I I
This Power Purchase agreement is made and entered into as of 3rd Mc■-/ 2012 at Hyderabad, Sindh, Pakistan in pursuance of Notification bearing No. GM/ CPPA/F-22/1459-72 dated 23-08-2008 and Chief .Engineer-II (CPPA) letter No. CPPA/DT-III/F-150/5999-6001 Dated 12.07.2011.
BETWEEN
Hyderabad Electric Supply Company Limited Hyderabad. a public limited Company established under the laws of Pakistan, with its principle office at Hyderabad, Sindh Pakistan and its successors and assigns of the one part, hereinafter called Power Purchaser.
AND
M/s Salim Yarn Mills (Pvt) Limited, H-4 Site Area Kotri, a Private Limited Company incorporated under the laws of Pakistan, with its principle office at Plot No. 7/B-1, Korangi Industrial Area, Karachi Sindh and its permitted successors and permitted assigns of the other part, hereinafter called "Company".
Both the Power Purchaser and the company shall hereinafter also be referred to individually as "the Party" and collectively as "the Parties".
WHEREAS the company will sell and the Power Purchaser will purchase from the company electrical energy on the terms and conditions set here-in-forth, pursuant to Generation Licence issued by NEPRA. Provided, however, if the company has not obtained Generation Licence from NEPRA, it can sell electrical energy to the Power Purchaser from the date of filing an application to NEPRA for grant of Generation Licence.
NOW THEREFORE, in consideration of the mutual benefits to be derived and the representations, warranties, conditions and premises herein contained, and ihtending to be legally bound, the company and the Power Purchaser hereby agree as fallows:
Wherever the following capitalized terms appear in this Agreement, they shall have the meanings stated below:
I r31
PAKISTAN 20 RS.
•
RU r ,
111111111P1.'".7410:
(06
Ir
0 AP Licc;;CtoY,o.22 "Back - u Meterin S stem" All meters and metering devices to oe procure Shade 6416•HYdora'''nfnstalled and tested by the Power Purchaser. The accuracy class of meters shall be
0.5
"Billing Cycle" (i) The periods starting from 12,00 hours of first day of each month up to 12.00 hours of sixteenth day of each month and (ii) The period starting from 12.00 hours of sixteenth day of each month up to 12.00 hours of first day of the following month.
"Company" M/s Salim Yarn Mills (PVt) Limited, H-4 Site Area Kotri a Private Limited Company incorporated under the laws of Pakistan, with its principal office at Plot No. 7/B-1, Korangi Industrial Area, Karachi Sindh and its permitted successors and permitted assigns.
"Fixed Cost Component" The tariff component payable @ Rupees 1.53 per KWh delivered, by the company which includes but not limited to 0 & M cost tax on income of the Company, insurance cost, return on investment, duties, etc. This component will remain fixed effective from01.01.2009 vide CPPA notification No. Gm/CPPA/F-22/80-104 dated 05.01.2009 "and / or as advised by CPPA (WAPDA/ PEPCO) for further period" and at par with Fixed Cost Component allowable to other Generation facility (s) already supplying power to distribution companies through bilateral contracts.
"Gas Cost Component" The tariff component Payable © Pak Rupees 2.89 per Kwh delivered by the Company based on the References Gas Price and as adjusted from time to time for gas price movement only.
"Gas Price".- The price of pipeline quality Gas delivered at the Generation Fa. excluding General Sales Tax applicable for the Billing Cycle as notified by OGR
"GCC" Stands for Gas Cost Component.
"GP" Means the price of pipeline quality gas notified by OGRA from time to time.
"Generation Facility" Means the Generation Facility or part thereof, located on site having installed capacity up to 2.3 MW gas based and earmarked to drrolit---", electrical energy to the Power Purchaser under this Agreement. , 0
J r 3 2
PAKISTAN 20 RS.
1\U(
.r, j!!!1P
(A'Wrili 11 OA 441i -"' \'11;1'.17Vij "
r
16...14111h • zoca= 3= Mc at
n Licence" The per is n granted b RA to the companyilpri p 1.; ..11atie6tio and supply of electricity to Hyderabad Electric Supply Comp l) rti
0410 Limited yderabad.
"Interconnection Point" The physical point(s) where the Generation Facility and the 11Kv system of the Power Purchaser is connected i.e. at the respective outgoing 111-cv feeder breaker of the Generation Facility at which the transfer of the net electrical output occurs through;
(a) Independent radial feeder (s) isolated from any other 11KV system of the Generation Facility;
Or (b) Synchronization of 11Kv of the Generation Facility with the 11Kv system of the
Hyderabad Electric Supply Company Limited, but isolated from any other 11Ky system of the Generation Facility;
"Metering Point" The 11Kv outgoing breaker panel / metering panel installed in the control room of the Generation Facility.
"Metering System" All existing' meters and metering devices available at the Metering Point of the Generation Facility of the Company shall be used for recording of electrical energy to be supplied to Power Purchaser. The accuracy class of meters shall be 0.5. The Power Purchaser may check / recalibrate the Metering System at appropriate intervals, at its own cost.
"NEPRA" The National Electric Power Regulatory Authority established by the Regulation, Transmission and Distribution of Electric Power Act 1997(XL of 1977), and any successor or substitute regulatory Agency with authority and jurisdiction over the electricity sector in Pakistan.
"OGRA" Means the Oil and Gas Regulatory Authority of Pakistan.
"Power Purchaser" Hyderabad Electric Supply Company Limited, a public limit Company established under the laws of Pakistan with its principle office at Hy and its successors and assigns.
"Prudent Electrical Practices" The use of equipment, practices or methods, as requires to comply with applicable industry codes, standards, and regulations in Pakistan (i) to protect the grid system, employees, agents, and customers from mal-functions occurring at the Generation Facility, (ii) to protect the Generation Facility and the Company's employees and agents at the Generation Facility and from mat-functions occurring on the grid system .Prudent Electrical Practices are not limited to optimum practices, methods or acts to the exclusion of all other, but rather are a spectrum of possible practices, methods and acts which could have been expected to accomplish I desired result at reasonable cost consistent with reliability and safety.
/N..c
J■
J, 033
The parties further agreed that;
a) The term of this agreement is Three years, from the signing of the agree which can be extended by mutual consent of the Parties.
P Y .
PAKISTAN 20 RS.
- 41/ • • of
Practices" — This: ractices, • s and procedures confavrIn9ADR 20i2 ; ' ar5ty,and' al requirements which are attained by exercising that degre&df
ligefiRe;;A:Kujlence and foresight which would reasonably and ordinarily be expected from a skilled and experienced generator of electricity engaged in the same or a similar type of undertaking or activity under the same or similar circumstances and conditions to those pertaining in Pakistan and satisfying the health, safety and environmental standards of reputable international electric generation companies. Prudent Utility Practices are not limited to optimum practices, methods or acts to the exclusion of all others, but rather are a spectrum of possible practices methods and acts which could have been expected to accomplish the desired result at reasonable cost consistent with reliability and safety.
"Reference Gas Price" — The price of the pipeline quality gas i.e Rs.238.38 per MMBTU(HHV) excluding general sales Tax (GST).
"Reference Price" — The Reference Price for the purpose of this agreement is Pak Rupees 4.42 per KWH delivered, on 11 KV, which consists of Fuel Cost Component i.e Pak rupees 2.89/KWH delivered, Based upon Reference Gas Price, and Fixed Cost Component of Pak Rupees 1.53/KWH delivered, excluding general sales tax (GST). Fuel Cost component is adjustable from time to time as per formula given in clause ' h ' Of the agreement.
"Take-and-Pay Basis" — Means the basis on whichPower purchaser will pay to the Company, the fuel Cost Component and the Fixed Cost Component against the delivered kWh only.
b) The Generation Facility shall not supply electrical energy, produced on fuel other than that agreed between the Parties "as agreed on Gas Based Generation".
c) The Company shall sell and the Power Purchaser shall purchase the electrical energy at the Reference Price.
d) The Company will provide up to "2.0" MW of power ON TAKE AND PAY BASIS at a voltage of 11KV and at 50 Hz frequency with a tolerance of + 5% in nominal voltage and + 1% in nominal frequency. The quality of electrical energy shall be ensured by the Company through installation of necessary equipment required as per Prudent Electrical Practices and Prudent Utility Practices.
/to.,
P34
PAKISTAN 20 RS.
14A7.t G. .
Ne.G. f)
9)
h)
'3 0 APR 2012 The Co .t of connectivity either on 11KV, 66KV or 132KV will be borne by the
Power Purchaser.
The Company shall provide access and facilitate the authorized representative(s)
of the power Purchaser to the control room of the power, plant to monitor the
Metering system and interconnection point relating to power dispatch.
The meter reading will be recorded by Power Purchaser's authorized persons in
the presence of the Company's representative as per billing cycle and the
company will submit its energy invoice accordingly.
The company will provide documentary evidence, for the rates of the pipeline
quality gas as notified by OGRA for WAPDA power stations. The fuel cost
Component will be adjusted for any increase or decrease in the Reference Gas
Prince during the Billing Cycle according to the Formula:
GCC (rev)
Where
GCC(rev)
GP(rev)
GP(ref)
GCC(ref)
GP(rev)/GP(ref)• GCC(ref)
Gas Cost Component applicable for the Billing
Cycle
Revised Gas Price, excluding general sales tax
Applicable for the Billing Cycle as notified by
OGRA for WAPDA power stations.
Reference Gas Price i.e. Rs.238.38/MMBTU(H
Rs.2.89/kWh
i) The Company will submit one (1) original invoice with three (3) copie to Power Purchaser along with OGRA notification of gas price of the Billing Cycle and meter reading. The Power Purchaser will make payment against each invoice submitted by the Company within "15 working days" from the date of receipt of the invoice by the Power Purchaser. If the Power Purchaser fails to make the payment by due date then the Power Purchaser will pay to the Company late payment surcharge upto a maximum 1% (One percent), per month. In the event of non-payment by Power Purchaser for two (2) consecutive Billing Cycles, 71:1011' , /, the Company reserves the right to discontinue the power supply.
ft • 035
E
PAKISTAN 20 RS.
ao • 4
111/1:
21■Ca0.11C ∎ ..1=7.1C74C acac
.., ..,", HAM! 6 m),..-. 11
r ices and other communi -lions required or permitted to be given by a Party -3- Mr511n VI Govt:
LlceS
nta:
eti.N)u4.1.71;,.
" facs imile be in writing and either delivered personally or by courier or sent by
Shade No.6. Flyc.4,--- .faCtimile to the address or number of the other party specified below:
i) If the power purchaser:
_Attention:
Facsimile:
With a copy to:
Attention:
Facsimile:
Chief Executive Officer, HESCO Hyderabad
022-9260361
Chief Engineer (P&E), HESCO Hyderabad
Fax No 022-9260361
ii) If to the Company
Attention: Chief Executive Officer, M/s M/s Salim Yarn Mills (Pvt) Limited, Plot No. 7/B-1, Korangi Industrial Area, Karachi Sindh. •
•
Facsimile: Fax No. 021-35070825
With a copy to:
Attention: General Manager, M/s Salim Yarn Mills (Pvt) Limited H-4 Site Area Kotri and at Plot No. 7/B-1, Korangi Industrial Area, Karachi Sindh.
Facsimile: Fax No. 021-35070825
Provided That a party may change the address to which notices are to be sent to it by giving not less than thirty (30) days' prior written notice to the other party.
(b) No notice or other communication shall be effective until received or deemed
received. Notices or other communication shall be deemed to have been
received by the receiving party:
(I) When delivered if personally delivered;
(ii) One (1) business day after sending, if sent by courier; o
6
(136
PAKISTAN 20 RS.
k)
3(1 APR 2012 Upon sending if sent by facsimile, .subject to conformation of an
tninterrupted transmission report and provided that a hard copy is
dispatch not later than the following business day to the recipient by
courier or personal delivery.
The power Purchaser may install the Back-Up Metering System with meters of
0.5 accuracy class in the metering room at Company's premises. Parties agree
that, in case of doubt by any Party about the accuracy of Metering System, the
recordings of the Back-Up Metering System or any other mutually agreed
arrangement may be adopted. In the event of complete or partial damage to the
Metering System the same shall be replaced. Such replacement shall be at the
sole option of the Power Purchaser and at its expense. On the initial or any
subsequent replacement (s) of the Metering System the Power Purchaser shall
have the right to affix seals on the tested and calibrated meters but in the
presence of Company's authorized representative.
I) If either of the Metering System(s) differ from the other by an amount greater
than one-half of one percent (0.5%), the power Purchaser shall test the accuracy
of the metering System and recalibrate the metering System. if the metering
System is found to be in order, the Company shall be bound to test and calibrate
the Back-Up Metering System to the satisfaction of the Power Purchaser. Either
Party shall give prior notice, not less than forty-eight (48) hours to conduct such
tests.
m) The Company will provide it's maintenance schedule to the Power Purchaser so
as to ensure stable and reliable supply to Power Purchaser's network.
n) Company will serve at least a 48 hour notice to the Power Purchaser regarding any planned shut down. The Company has right to immediately discon the power supply to the power Purchaser in the event of any electrical load of its affiliates, maintenance of engine of affiliate mills, break machineries in generation facility and will intimate to Power Purchaser
MC 037
\ VA..______„___
.l.;!p, 4 ic.-7
1■
-.' In,caSe of a permanent fault on any feeder, the Company will informle0P
'fAPOD rin.4.-,
. Purchaser immediately and the Company will switch on the Feeder, only after" LU14, •
"
obtaining the clearance certificate form an authorized person nominated by power purchaser.
The Company will immediately inform Power Purchaser about power supply
failure due to defect/mal-operation of the Generation facility.
q) Either party shall be responsible to adopt all safety measures according to the
Prudent Electrical Practices on respective sides of the Interconnection Point.
r) If at all mutually agreed, the total or partial power off-take could be on a higher
distribution voltage level other than 11KV. In that case, the parties agree as follows:
i. The cost of up-gradation will be to the Power Purchaser's account. However,
initially the Company will finance the up-gradation scheme. The cost of up-
gradation, so incurred by the Company, will be paid back to the Company in five
years, through then (10), half yearly equal installments, without mark-up,
commencing after on month form the commercial operation date. "As such the
assets purchase will be transferred & thus become the asset of HESCO as
soon as HESCO receive the claim of amount against such purchase".
The connectivity arrangements can be built through one of the following options:
Option-1
Company will manage construction of the up-gradation scheme at its level but
with the consultancy services of General Manager Services NTDC.
Option-2
Company will deposit with NTDC/DISCO the estimated amount, prep a by
NTDC/DISCO for construction of connectivity arrangements on turnkey asis by' -Nt'14_
NTDC/DISCO. , . ,
7 ,
/10 0 038
PAKISTAN 20 RS
• ,t I :00
f: '1;7S Ci.
y)
..„,.
, 4,
w) The arbitration shall be conducted in Hyderabad, Sindh Pakistan.
x) Either Party can terminate this agreement by giving a three-month advance notice. There will be no liability on any party except the payments due to either party prior to termination of the Agreement.
Except as specifically provided elsewhere in this Agreement, the power
Purchaser shall indemnify and defend the company, for itself and as trustee for its officers, directors and employees against, and hold the compare officer, directors and employees harmless form, at all times after the d eof, any and all loses incurred suffered sustained or required to be a directly or indirectly, by, or sought to be imposed upon, the Company.
fa
(139
1p 6s of a premature termination of contract, the remaining Cost of up-gradation shalt be immediately reimbursable in to and all the up-gradation equipment(s) shall become the properly of power Purchaser.
t) In the event that a dispute arises, the Parties shall attempts in good faith to settle
such dispute through their Chief Executive officer (CEOs) by mutual discussion(s) within thirty (30) days after the date that the disputing Party delivers written notice of the dispute to the other party.
u) The party reporting the existence of a dispute shall give to the other party written notice setting out the material particulars of the dispute in the written notice. Chief Executive Officer (CEOs) of each party shall meet in Hyderabad Sindh, Pakistan to attempt in good faith to resolve the dispute:
v) Incase the dispute is not resolved within thirty (30) day after the date of receipt of notice described in section (t) by the relevant Party (or within such longer period
of time as the Parties may agree), any party may initiate arbitration proceedings under the Arbitration act 1940, and the jurisdiction in such cases would be that of the relevant court in Pakistan.
20 RS.
Chief Execut' Officer HESCO Hyderabad
ChilEngineer (P&E) HESCO Hyderabad
PAKISTAN
- (.. _ "y II 1.! ,• •
`.1
/ , arc..ac.amczmanc,x-
yt 3 0 APR 2012
z) Except as specifically provided elsewhere in this agreement, the Company shall
indemnify and defend the Power Purchaser, for itself and as trustee for its officers, directors and employees against, and hold the Power Purchaser, its
officers, directors and employees harmless from, at all times after the date hereof, any and all loss, incurred, suffered, sustained or required to be paid, directly or indirectly, by, or sought to be imposed upon, the Power Purchaser.
aa) All permissions, consents required by the company from different agencies such as NEPRA etc. will be arranged through joint efforts of the Company and Power Purchaser. The cost incurred in this regard will be borne by the Company.
ab) This agreement may be executed in Two (2) counterparts and each counterpart will be deemed an original instrument but both the counterparts together will constitute one agreement
IN WITNESS whereof the parties hereto have signed this agreement on the day and year first above written.
ITNESSES
ON BEHALF OF
Hyderabad Electric Suppl Company i(HESCO) Hy. abad
ON BEHALF OF
M/s Salim Yarn Mills (Pvt) Ltd Plot No. 7/8-1 Korangi Industrial Area
Karachi
:( M/s Salim Yarn Mills (PV,t)'Ltd
H-4 Site Area Kotri
enAral Manage 7-.._:_--5-1,-,7>\ M/s Sall `iirfi—Mills (P/VOtt-':
H-4 Site\Area Ko i:(,-.,,,, ,,,,:',■ t( V; ,.1-.1 :k. _..,
-
Jr 040
LOCATION
Name of Grid Station
132 KV Tliatta
3 C.D.P5 botween HESCO and KESC
CIRCUIT
132 IN Thatta Charo 0
KW
Import Ezcport
1 0 0
K.W.H
Import Export
WORKING SHEET CIRCUIT-WISE DETAIL OP K.W.H
RECORDED AT C.D.Ps IN RESPECT OF HESCO HYDERABAD
FOR THE MONTH OF AUGUST-2011
1 C.D.Pv botwo on N.T.D.0 ANT) TTESC 0
4, 500 IN DADU
500 IN Jarrishoro
Namo of Grid Station
220 IN Halo. Road Hyderabad
• Auxiliary
220 ICV T.M IChan Road Hyderabad
Auxiliary
P/Trf: H.W.11 It.W
T/ Lino Import Export Import DDN-4 37990000 0 828•12
Export
0
T-3 45595624 25199 112800 10500 T-7 44719584 1359648 146030 60820
T-6 Starting/Aux: Ira; at JPCL 0 1830000 0 12210 T-1 56220000 0 134240 0 T-2 59010000 0 134710 0 T-3 58440000 0 130000 0
0 33498 0 45 T-1 55160000 0 140000 0 T-2 66820000 0 130740 0
0 20848 0 28.02
2 Ps batman GENCO AND HESCO
Name of Grid Station P/Trf:
T/Lino
1{.W.H
1 KM
Import Export Import Export
Dclivczy through G.T.P.3 Kotri GI-RICO-I
KTR-9 730000 0 32962 0
ICTR-11 9447000 0 40960
KTR- 12 2036000 11000 2736 15
ICf12-13 10411000 739000 17950 7600
KTR-14 7183000 2023000 10450 14450
T-1 0 0 • 0 0
rawer House GENCO-IV Delivery through Lalchra
JMS-1 571000 6125000 11500 66000 ' JMS-2 498000 5259000 9935 38125
JMS-3 23013000 0 79875 0
041 DllarAshok_22_07_20101CD 2 JULY 11 TO JUNE 2012 final CPPA
4 C.D.Pa botwoott ITESCO and flEPCO
LOCATION
Mune of Grid dtation
132KVIThan Saecdabad
132 KV Kazi Ahmed, Sub-Total 1 2 3 4
Delivery through Haji lemon Tax: Mill P/H
Kotri
Delivery through Sapphire Tax: Mill Pill
1Cotri.
Delivery through Anoud Tax: Mill
Delivery through ZORLU Wind Power Energy
Jhumpir AGAR Tax: Mill Kari
. CIRCUIT
BSA-2
KZA-I
S. P. Ps
Import Export
1C.4J.1-1 !LW
E2cport
13074
7083 229980.02 5 C.D.Ps botweon HESCO and
TOTAL K.W.H UNITS
TOTAL MDI
ABSTRACT IMPORT
491,163,392
1,217,732
EXPORT
32,424,933
229,980
DIFFERENCE
458,738,439
987,752
)( 0 4 2 0.11.1r Ashak_22_02_20101CD 2 JULY 11 TO JUNE 2012 Ennl CPPA
DISCO - WISE DEMAND AND DEMAND AT INTER
CONNECTION POINT (MW)
System Demand (peak 2006 to 2007
Description HESCO
Demand at Inter Connection Point 1231
Load Shedding 214
Peak Demand 1445
Demand at Inter Connection Point 1229
Load Shedding 825
Peak Demand 2054
Demand at Inter Connection Point 1503
Load Shedding 506
Peak Demand 2009
Demand at Inter Connection Point 1446
Load Shedding 483
Peak Demand 1929
Demand at Inter Connection Point 1398
Load Shedding 599
System Demand (peak 2007 to 2008
System Demand (peak) 2008 to 2009
System Demand (peak) 2009 to 2010
Peak Demand 1997
NOTE: Load shedding (MW) Figures Constitute of "Schedule Load Management + Forced Shedding.
System Demand (peak) 2010 to 2011
043
Form III
1 of 2 INFORMATION ABOUT GENERATION CAPACITY UNDER PROPOSED PROCUREMENT REQUEST
M/S SALIM YAR MILLS PRIVATE LIMITED Description Generator - 1 Generator -2
Capacity MW 1 x 0.9 MW tx 1.4 MW Total 2.3 MW Technology WAUKESHA CATERPILLER Gas fired Fuel Natural Gas
Weather forms part of least cost plan No
Availability of Power /Energy 2.0 MW
Year of Commissioning 2012 Location
Site Kotri Proposed Grid for interconnection Approximate Distance
132KV Site Kotri G/S 1.5 KM
Augmentation required in Grid No
Augmentation required in transmission network No
Estimated costs of augmentation required in the transmission network N.A
Steps taken or required for transmission augmentation N.A
Any other information The interconnection would be made on 11 KV feeder from M/s Salim Yarn Mills (Pvt) Limited to 132 KV Kotri Site Grid Station for evacuation of power to cater the industrial load only.
Summarize: Total Capacity
Year-1 ------ 2.0 MW
Year-2 -------- 2.0 MW Year-3 ------ 2.0 MW
proposed to be procured over the period (MW)
C rs Nese AIADocumentsSEacel faes■Povaer Ace NEPRA Cases
Form HI Page 2 of 2
• Gas fired
• Indigenous fuel
• Power Procurement would be an economic one and would .; not adversely affect the transfer price / power purchase of
HESCO. Transmission network due to Power Generation of
2.0 MW will not be affected
• Voltage level 11 KV Capacity
• Name of Grid Station: 132 KV Grid Station Site Kotri • Not applicable
Form II Page 1 of 2
PEAK LOAD JANUARY 2011
Demand -- -- - ------------------ 851
Area Generation ------------- 690
Balance ------------------------- -161
HESCO (Hyderabad)
PEAK LOAD JANUARY 2011 (GENERATION DESPATCH)
Form II Page 2 of 2
Jamshoro 525
Kotri 134
Lakhra
HESCO Gen. (Hyderabad)
690
31
