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NEPRA to Hold Public Hearing for Approval of Solar Project at Muzaffargarh

The National Electric Power Regulatory Authority (NEPRA) has decided to hold a public hearing for the approval to carry out competitive bidding for 600 megawatt peak (MWp) Solar Project at Muzaffargarh, Punjab on January 9.

As per the details, Alternative Energy Development Board (AEDB) has submitted the RFP documents to the NEPRA in pursuance of authority’ competitive bidding tariff (approval procedure) regulations 2017 for approval to carry out competitive bidding for 600 MWp Solar PV Project at Muzaffargarh.

The authority considered the RFP documents and has decided to hold a public hearing in the matter on January 9, 2023.

There are 16 issues framed for Public Hearing including why the project cannot be developed under the provisions of ARE Policy, 2019, duly approved by Council of Common Interest instead of Framework Guidelines 2022?

Whether the processing of project is not inconsistent with the provisions of the ARE Policy, 2019 which states that the first round of competitive bidding shall be conducted for Category-III projects, and whether the necessary actions and subsequent approvals as required under the ARE Policy, 2019 have been complied with for the project?

Whether the Framework Guidelines under which the instant RFP has been submitted is only for this specific project or it shall be continued for future projects as well? This needs to be noted that for all future projects, under CTBCM, the contracts shall be bilateral i.e., between DISCOs and the power projects.

Why is the project development regime of Build Own Operate & Transfer (BOOT) being adopted instead of Build Own Operate (BOO)?

Whether the non-observance of the pre-qualification process would result in delaying the development timelines of the project?

Whether the project has been included in the approved Indicative Generation Expansion Plan and Transmission System Expansion Plan?

Whether the relevant studies in the feasibility study of the project have been approved by the concerned entities, where applicable?

Whether the yearly indexation of 70 percent of the tariff with US dollar (USD), as proposed in the RFP, is justified?

Whether the impact of income tax as proposed in the RFP is to be included in the benchmark tariff or otherwise? If yes, then whether that should be approved as a pass through item or be made part of the tariff?

Whether the technical and financial evaluation criteria as proposed in the RFP is justified?

Whether the consent to procure electricity from the project has been obtained from CPPAGL and whether the interconnection commitments for the project have been obtained from the relevant entities? Do the timelines for building the transmission system match with project’s COD timelines?

Whether the purchase of land by NTDC and its subsequent lease to AEDB is justified and consistent with the applicable law, ARE Policy, 2019 and prudent utility practices and whether to include the cost of land of PKR 1.4 billion in the project cost or be allowed as lease rentals in the benchmark tariff?

Why is the site of Quaid-e-Azam solar power park, having the required land, grid and other infrastructure, not being considered for the proposed project?

Whether the proposed Bid Evaluation Committee is in accordance with the provisions of NEPRA Competitive Bidding Tariff (Approval and Procedure) Regulations, 2017 as well as ARE Policy, 2019?

Whether the amounts of different fees and charges, as specified in the RFP, are justified?

What would be the mechanism for the selection of the next bidder in case the successful bidder decides, for any reason, to not develop the project and any other issue(s) with the approval of the Authority.

Source: Pro Pakistan

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