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Govt Fails to Attract Investors for 600 MW Solar Project in Muzaffargarh

Posted by Web Desk

Prime Minister Shahbaz Sharif’s efforts to attract international investment in “Clean and Green Energy” remain futile as not a single investor participated in the bidding process for the 600 MW Muzaffargarh solar power plant.

This has been disclosed in a consultative session arranged by the National Electric Power Regulatory Authority (NEPRA) with stakeholders.

Sources quoting Chairman NEPRA informed ProPakistani that the absence of any received bids for the 600 MW Muzaffargarh solar power plant signifies the failure of all departments involved. It is crucial that we accept our responsibilities collectively and fairly as one team.

Chairman NEPRA on this occasion said that we will also hear the investors’ concerns with an open mind in order to provide a favorable environment for the investors for their maximum participation in the Round-II.

Reportedly, stakeholders in the session warned not to invest in Pakistan with the approved tariff of 3.412 cents in the current economic and political instability conditions, sources added.

Sources further said that the Financial Advisory Firm “Bridge Factor” has proposed a 5.5/6 cents tariff to NEPRA for 600 MW Muzaffargarh solar power plant due to the prevailing economic and political crisis.

The participants from Atlas Power have raised concerns about unrealistic COD timelines, lower EPC cost, risk in type testing of equipment, high nonrefundable processing fee, and incomplete schedule attached in the RFP which make it uncomfortable for bidders to participate in the bidding process.

Meanwhile, the country director of ‘Scatec Solar’ has also pointed out that the project is not feasible under current RFP TandCs besides timelines to launch the project are not feasible under the current country’s economic situation.

Similarly, the representative from ‘Luckily Power’ also agreed with the views raised by the other participants.

During the session, the representatives of Pak Solar Limited UK showed their interest in the project if the government allows for an unsolicited proposal for the whole 2.4GWs program with a slightly higher benchmark tariff.

Sources said that NEPRA was reluctant to disclose the background working for EPC cost of the solar power plant which is $330 million whereas the investors think that EPC is around $430 million.

Source: Pro Pakistani