Lahore, December 04, 2015 (PPI-OT): The financial bids of the three technically responsive bidders were opened here at WAPDA House for procurement of six generating units with generation capacity of 135 megawatt (MW) each. These units will be installed at Mangla Hydel Power Station as part of Mangla Refurbishment Project.
During the previous bidding process for two units, which was annulled by WAPDA, the lowest responsive bid price for one unit was Rs.2.377 billion, which decreased to Rs.1.712 billion. At the time of the first tendering, Alstom Hydro France – the lowest responsive bidder – was debarred by the World Bank. Resultantly, WAPDA cancelled the tender and initiated the tendering process afresh. By the time, the sanction imposed on Alstom was lifted and it again participated in the tendering, financial bids of which were opened the other day at WAPDA House. In addition to Alstom Hydro France, Voith Hydro Germany and Andritz Hydro Austria were the bidders in the second tendering. The fresh bidding for procurement of six units is expected to benefit the national exchequer by about Rs.4 billion as the price of one turbine is lower by Rs. 0.665 billion.
In the second tendering, WAPDA adopted a fast-track approach by inviting tenders for six generating units. In addition to saving of Rs. 4 billion in the cost of the units, WAPDA will also be able to complete refurbishment of six units in five years by adopting the fast-track approach.
It is pertinent to mention that Refurbishment Project will increase the generation capacity of Mangla Hydel Power Station from 1000MW to 1310MW, an increase of 310MW.
The existing Mangla Hydel Power Station has 10 generating units, having generation capacity of 100MW each with a useful life of 30 years extendable upto 35 years. The first unit was commissioned in 1967. Despite completion of their useful life long ago, all units installed at Mangla Hydel Power Station have still been working efficiently and generating electricity in accordance with their installed capacity due to the operational skills of WAPDA engineers and technical personnel and effective maintenance of these units.
In order to benefit from additional 2.88 million acre feet (MAF) of water and 40 feet additional water head available with completion of Mangla Dam Raising Project in 2009, WAPDA planned to refurbish the existing Mangla Hydel Power Station. Besides, the use of latest technology was also one of the factors to make plans for optimizing generation capacity of Mangla Hydel Power Station. With use of the latest technology, the quantum of water which generates 1000MW will be sufficient to generate 1310MW of electricity. WAPDA completed feasibility study of Mangla Hydel Power Station Refurbishment Project in 2011.
Mangla Refurbishment Project will be implemented in various phases, wherein the generating units will be refurbished by closing down one tunnel (two generating units) at a time. First two units will be refurbished by the year 2018, the next two by 2019 and the other two by the year 2020. By the year 2022, all the 10 units will be refurbished to complete Mangla Refurbishment Project. The approved PC-I cost of the Project is Rs.52.224 billion. It is worth mentioning that the USAID is providing US$150 million as grant for the purpose, while rest of the amount will be arranged by WAPDA through loans.
Subsequent to the opening of financial bids, WAPDA Member (Power) Badrul Munir Murtiza briefed WAPDA Chairman Zafar Mahmood on the matter. Expressing satisfaction over the tendering process, WAPDA Chairman congratulated the Member (Power) and his team. He expressed the hope that WAPDA officers will be able to complete its projects on time and with lesser cost if they continue to work with same dedication.
For more information, contact:
Muhammad Abid Rana
Director Public Relations
Water and Power Development Authority (WAPDA)
G-32, WAPDA House, Lahore